Forget ImmunityBio: This Big‑Cap Pharma Is the Safer Play on Next‑Gen Cancer Therapies
Key Points
ImmunityBio's recently approved cancer drug has plenty of momentum.
However, valuation concerns and clinical and regulatory uncertainty make the stock risky.
Merck, a well-established oncology specialist, is a much safer bet for investors.
- 10 stocks we like better than Merck ›
Oncology is the largest therapeutic area in the biopharma industry, in terms of sales. The rapid rise in recent years of drugs to treat diabetes and manage weight loss might disrupt the traditional hierarchy, but it's safe to say that oncology will remain one of the most lucrative areas.
ImmunityBio (NASDAQ: IBRX) is a mid-cap drugmaker making waves in this niche right now; the company's shares have soared over the last 12 months. Although ImmunityBio appears promising, investors looking to bet on cancer therapies over the long run should opt for a larger, safer stock.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
One that investors should consider today is Merck (NYSE: MRK). Here's the rundown.
Image source: Getty Images.
ImmunityBio's impressive sales growth
ImmunityBio developed a medicine called Anktiva, which, in 2024, earned approval in the U.S. for invasive bladder cancer. Anktiva made tremendous progress last year. For 2025, ImmunityBio reported total revenue of $113 million, about 668% higher than the previous year.
In fairness, since Anktiva was only approved in April 2024 (and launched later), it spent only about half of that year on the market. So the sales growth compared to 2025, when it was on the market for the entire year, isn't entirely apples-to-apples.
Anktiva clearly has plenty of momentum, and ImmunityBio doesn't think it will stop. The company is gearing up to launch it in other regions, including the European Union and Saudi Arabia. Furthermore, the biotech company is planning some label expansions for the medicine. Anktiva is undergoing clinical trials in lung cancer, lymphoma, ovarian cancer, and other conditions such as HIV infection.
Why Merck is a safer play
While ImmunityBio is performing well right now, valuation might be a concern. The company's market cap is $9.7 billion -- with sales last year of far less than $500 million. True, the market is forward-looking. Even so, there is plenty of risk and uncertainty to consider here.
Anktiva could fail mid-stage or pivotal studies; commercial rollout in other countries could run into problems; and ImmunityBio might encounter regulatory roadblocks. If any of those things happen, the company's shares will drop, perhaps significantly. That's why, despite Anktiva's strong momentum, ImmunityBio's shares look risky.
What about Merck? The company may not grow its sales by 700% year over year, but it generates consistent revenue and earnings. Merck's most important product is Keytruda, the best-selling cancer medicine in the world (and second-best-selling overall). Keytruda is approved across many different cancers; it has won more than 30 indications in the U.S. alone. That's impressive.
It's true that Keytruda will lose patent exclusivity by 2028. However, Merck has planned for that eventuality. The company received approval for a subcutaneous formulation of its crown jewel, which is easier and faster to administer than the original version. This new formulation won't lose patent exclusivity as soon, and given its significant advantages, it should attract plenty of patients who might have otherwise chosen the old version.
So, Merck's cancer franchise should remain a growth driver into the next decade. In the meantime, the company should launch newer products, including in oncology; Merck is running more than four dozen clinical trials in this field alone. Some are for already approved products seeking label expansions. Many are for brand-new cancer therapies.
Merck is going after exciting markets. Its pipeline includes a bispecific antibody, a newer class of drugs that could capture much of the oncology market over the next decade or so. The company is a great bet on the future of this niche.
But Merck's lineup and pipeline also extend far beyond it. In recent years, the company has earned approval for medicines that are already meaningfully contributing, such as Winrevair, which treats pulmonary arterial hypertension. And it has pipeline candidates in other areas as well. The pharmaceutical leader's vast and diversified pipeline and consistent financial results make it a safer bet than ImmunityBio.
Should you buy stock in Merck right now?
Before you buy stock in Merck, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Merck wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,072!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 5, 2026.
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck. The Motley Fool has a disclosure policy.
Recommended Articles
