Oncology investments remain a focal point for pharmaceutical investors as the sector continues to generate substantial returns despite growing competition from newer therapeutic areas. While mid-cap biotech company ImmunityBio has captured significant attention following its recent share price surge and impressive revenue growth driven by its newly approved bladder cancer treatment Anktiva, industry analysts suggest that large-cap pharmaceutical companies may offer more stability for long-term oncology investments. Merck stands out as a particularly attractive option for investors seeking exposure to next-generation cancer therapies without the heightened risks associated with smaller biotechnology firms.
ImmunityBio reported total revenue of $113 million for 2025, representing approximately 668% growth compared to the previous year, according to the company’s financial disclosures. This dramatic increase stems largely from Anktiva, which received U.S. approval in April 2024 for invasive bladder cancer treatment and subsequently launched later that year.
ImmunityBio Faces Valuation Concerns Despite Strong Performance
Despite impressive early commercial success, ImmunityBio’s current market capitalization of $9.7 billion raises questions about sustainability given its revenue base of less than $500 million. The company is expanding Anktiva’s geographic reach with planned launches in the European Union and Saudi Arabia. Additionally, ImmunityBio is pursuing label expansions through clinical trials in lung cancer, lymphoma, ovarian cancer, and HIV infection.
However, significant risks accompany this growth trajectory. Anktiva could encounter setbacks in ongoing clinical studies, face regulatory obstacles in new markets, or experience commercial rollout challenges. Any of these scenarios could trigger substantial share price corrections, making the stock a volatile proposition for investors.
Merck Offers Stability Through Diversified Cancer Portfolio
In contrast, Merck provides consistent revenue and earnings anchored by Keytruda, the world’s best-selling cancer medicine and second-best-selling drug overall. Keytruda has secured more than 30 indications in the U.S. alone, demonstrating its versatility across multiple cancer types. The pharmaceutical giant recently received approval for a subcutaneous formulation of Keytruda that offers easier and faster administration compared to the original intravenous version.
This new formulation addresses impending patent exclusivity concerns for the original Keytruda, which faces patent expiration by 2028. The subcutaneous version carries extended patent protection and should maintain the franchise’s competitive position well into the next decade. Meanwhile, Merck is conducting more than four dozen clinical trials in oncology alone, targeting both label expansions for existing products and development of entirely new cancer therapies.
Pipeline Includes Promising Bispecific Antibodies
Merck’s oncology pipeline features bispecific antibodies, a newer drug class that industry experts believe could capture significant market share over the coming decade. Beyond cancer treatments, Merck has recently launched Winrevair for pulmonary arterial hypertension, which is already contributing meaningfully to revenue. This diversification across therapeutic areas provides additional stability compared to companies heavily dependent on single products or narrow treatment categories.
The pharmaceutical company’s extensive pipeline extends into multiple disease areas, reducing concentration risk that often affects smaller biotechnology firms. This broad portfolio approach, combined with established commercial infrastructure and regulatory expertise, positions Merck to capitalize on advances in cancer therapy development while maintaining financial resilience.
Investors will monitor both companies’ clinical trial progress and commercial execution in the coming quarters, though Merck’s diversified approach and established market position provide a more predictable investment profile for those seeking long-term exposure to oncology therapeutics without the volatility inherent in single-product biotechnology stocks.
