SLS, IBRX, IOVA In Focus Amid Big Pharma’s Early Cancer-Asset Hunt: J&J Flags M&A ‘Sweet Spot,’ Pfizer Eyes Phase 1-2 Deals

J&J’s recent deals include the $3.05 billion Halda acquisition and $1 billion Firefly purchase, while Pfizer’s Innovent deal is worth up to $10.5 billion.

• SLS009 has shown 46%-50% response rates in AML and is being studied in KRAS-mutant pancreatic cancer.
• ImmunityBio’s Anktiva overlaps with J&J’s bladder-cancer franchise, while its IL-15 platform is also being explored in lung cancer and other settings.
• Iovance expects new lung-cancer data in the fourth quarter and targets an FDA filing in 2027.

Johnson & Johnson and Pfizer’s appetite for emerging cancer platforms has put Sellas Life Sciences (SLS), ImmunityBio (IBRX) and Iovance Biotherapeutics (IOVA) in focus as investors assess which smaller oncology companies fit Big Pharma’s acquisition playbook.

On Monday, IOVA jumped 8%, IBRX gained 6% and SLS rose 2%. 

Big Pharma Hunts Early Cancer Assets

“The sweet spot for us is to identify opportunities that are earlier on,” J&J CEO Joaquin Duato said at the Morgan Stanley healthcare conference, pointing to the company’s ability to add value through research, manufacturing and commercial scale.

J&J recently paid $3.05 billion for Halda Therapeutics last year, whose lead RIPTAC program was in Phase 1, and $1 billion for Firefly Bio in July, whose preclinical platform includes a pan-KRAS candidate targeting pancreatic, colorectal and lung cancers.

Pfizer CEO Albert Bourla also outlined a similar strategy: “I expect that we’ll be more on the earlier stages, both peri-IND and Phase 1, Phase 2.” Pfizer’s May agreement with Innovent Biologics, worth up to $10.5 billion, is proof of the same approach. Innovent will handle early development in China, while Pfizer can take successful oncology programs into global late-stage trials.

Why SLS Fits The Cancer M&A Screen 

Sellas offers a late-stage acute myeloid leukemia (AML) vaccine and a Phase 2 drug with potential across blood cancers and KRAS-driven tumors.

Its Phase 3 Regal trial is evaluating Galinpepimut-S (GPS) as maintenance therapy for AML patients in a second complete remission. As of May 11, the trial had recorded 78 of the 80 deaths required to trigger its final analysis. Regal would be considered successful if GPS extends median overall survival to 12.6 months, compared with eight months under standard treatment.

The WT1-targeting vaccine could complement J&J’s blood-cancer portfolio, which includes Darzalex, Tecvayli, Talvey and Carvykti.

SLS009 blocks CDK9, a protein that helps cancer cells survive. The Phase 2 drug has produced response rates of 46% to 50% and median survival of nearly nine months in AML patients who failed venetoclax-based treatment.

It also targets proteins used by KRAS-driven tumors. Sellas will present three pancreatic cancer studies at an AACR conference from Sept.25 to Sept.28. Meanwhile, Sellas’ $2.3 billion valuation also falls within J&J’s recent deal range. 

ImmunityBio’s Bladder And Lung Cancer Play 

ImmunityBio’s Anktiva is already approved with BCG for certain patients with BCG-unresponsive non-muscle-invasive bladder cancer and is approved or authorized across 34 countries. The FDA is reviewing Anktiva for papillary-only bladder cancer, with a decision expected by Jan.6, 2027. ImmunityBio also plans a fourth-quarter submission in BCG-naive disease.

Anktiva overlaps with J&J’s Inlexzo because both treat difficult bladder cancers. The products work differently but target the same specialist market.

ImmunityBio is also testing whether its IL-15 therapy can rebuild cancer-fighting immune cells depleted by other treatments. In earlier lung-cancer data, patients whose immune-cell counts recovered had median survival of 16.2 months, rising to 21.1 months among those with stronger recoveries. At about $8.9 billion, ImmunityBio would also be a much larger acquisition than Firefly or Halda.

Iovance Eyes Lung Cancer Expansion 

Iovance discussed its commercial progress and pipeline at the Wells Fargo Healthcare Conference last week and is scheduled to present at the H.C. Wainwright Global Investment Conference on Tuesday.

Its Amtagvi is the first approved tumor-infiltrating lymphocyte (TIL) therapy for solid tumors, which is an area where neither J&J nor Pfizer currently has a commercial product. TIL therapy involves collecting immune cells from a patient’s tumor, multiplying them into billions and returning them to the patient. Amtagvi generated about $91 million of Iovance’s $99 million in second-quarter revenue. 

Lung cancer is the next major catalyst. Earlier Phase 2 IOV-LUN-202 results showed a response rate of nearly 26% among 39 previously treated non-small cell lung cancer patients, with median response duration not yet reached. Iovance expects updated lung data in the fourth quarter and is targeting an FDA supplemental application in 2027.

How Do Retail Traders Feel About SLS, IBRX And IOVA?

On Stocktwits, retail sentiment toward SLS and IBRX was ‘neutral,’ though SLS drew ‘high’ message volume, while $IBRX saw ‘normal’ chatter. IOVA stood out with ‘bullish’ sentiment and ‘high’ message volume. 

Over the past year, SLS has surged 534%, IOVA has climbed 308% and IBRX has gained 222%. 

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