XBI, which includes both SLS and IBRX, is on track for its strongest monthly performance since December 2023.
- Edison Investment Research said oncology still offers “continued opportunities” across immuno-oncology, targeted therapies and other cancer-treatment areas.
- SLS fits the theme through GPS, its WT1-targeting AML immunotherapy, and SLS009, a targeted CDK9 inhibitor in development for AML.
- IBRX fits the immuno-oncology theme through Anktiva, its approved therapy that boosts key cancer-fighting immune cells.
Shares of Sellas Life Sciences (SLS) and ImmunityBio, Inc. (IBRX) are back in focus as the biotech sector heads toward a strong monthly finish, while analysts highlight ongoing opportunities across immuno-oncology and other cancer-treatment areas.
The SPDR S&P Biotech ETF (XBI), which includes both SLS and IBRX, is heading for one of its strongest monthly performances since December 2023. XBI is up 17% in June, while SLS has surged 53% and IBRX has gained 10%, with both the broader biotech ETF and SLS outperforming ImmunityBio this month.
SLS, IBRX Ride Cancer Wave
A recent note from Edison Investment Research said: “In oncology, the managers see continued opportunities from immuno-oncology, antibody-drug conjugates, bispecifics, targeted therapies, radiopharmaceuticals and molecular diagnostics.”
Sellas is developing GPS, a cancer immunotherapy that trains the immune system to recognize WT1, a protein found at high levels in several cancers. The treatment is being tested in a key Phase 3 trial for acute myeloid leukemia (AML). The company is also developing SLS009, a targeted cancer drug that blocks CDK9, a protein involved in cancer cell growth, for AML. ImmunityBio’s approved Anktiva, meanwhile, works by boosting cancer-fighting immune cells, including natural killer cells, CD8+ T cells and memory T cells.
Biotech M&A Buzz Builds
Edison said the healthcare “sector backdrop has improved,” citing greater U.S. policy clarity, attractive biotech valuations, high levels of innovation and big pharma’s looming patent cliff as factors that could keep M&A activity alive.
The note comes amid increased retail interest in small-cap cancer stocks, especially amid heavy buyout chatter around Sellas. The speculation intensified after the company updated severance and change-of-control arrangements for top executives. The filing does not say that a deal is underway, but the timing has stood out in a market already primed for biotech M&A.
Edison also expects dealmaking to remain an important driver as major drugmakers face patent expiries and look to “supplement internal R&D with externally developed assets.”
SLS, IBRX Catalysts In Focus
For Sellas, the main focus remains its Regal trial for GPS in AML. The study has reached 78 of the 80 events needed to trigger final analysis, placing the company close to one of its most important clinical readouts. CEO Angelos Stergiou recently called the delay in reaching the final event “a profoundly positive signal,” saying it suggests patients may be living longer than projected.
ImmunityBio has also remained in focus after the FDA accepted its application seeking to expand Anktiva plus BCG into a broader bladder cancer population, with a Jan. 6, 2027, target decision date.
How Do Retail Traders Feel About IBRX And SLS?
On Stocktwits, retail sentiment for SLS was ‘extremely bullish,’ while IBRX sentiment was ‘bullish,’ with both tickers seeing ‘high’ message volume.
While SLS stock has surged 510% over the past year, IBRX has gained 212% over the same period.
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