SA Asks: Which oncology companies are attractive M&A targets?

Which cancer drug developers are attractive takeover targets?

We asked Seeking Alpha analysts BioCGT Investor, ALLKA Research and Zach Hartman for their picks.

BioCGT Investor: Cardiff Oncology (NASDAQ:CRDF), which is on the verge of releasing Phase 2 clinical trial results in first-line RAS-mutated colorectal cancer, comes to mind as a very attractive target for M&A. Onvansertib’s mechanism of action positions it ahead of competitors such as Lumakras and Krazati. If positive, the phase 2 clinical trial results are likely to raise the attention of larger pharmaceutical companies.

Given its current valuation and interesting developments in the allogeneic CAR-Ts against blood and solid cancers, Allogene Therapeutics (NASDAQ:ALLO) could be a very attractive M&A target for Bristol Myers (NYSE:BMY) or Gilead (NASDAQ:GILD), which already have strong presences in the oncology cell therapies area.

Janux Therapeutics (NASDAQ:JANX) is developing tumor-activated T cell engagers and tumor-activated immunomodulator platforms. The company has strong collaborations with large pharmaceutical companies; however, the early clinical trial stage of their product candidates and high market cap may make potential acquirers a bit cautious.

ALLKA Research: Among potential M&A targets in oncology, I would highlight Incyte (NASDAQ:INCY) and its flagship drug Jakafi, which is the “gold standard” in the treatment of myelofibrosis.

I would also not ignore Blueprint Medicines (NASDAQ:BPMC), which is actively developing a pipeline of product candidates aimed at treating solid tumors and breast cancer. In addition, it again raised its 2025 guidance and now expects Ayvakit/Ayvakyt sales to be $700-$720 million.

I also note Legend Biotech (NASDAQ:LEGN) and its treatment Carvykti, which is being developed jointly with Johnson & Johnson (NYSE:JNJ). Sales of this highly effective CAR T-cell therapy for the treatment of multiple myeloma amounted to $369 million in Q1 2025, an increase of 135% year-over-year.

Zach Hartman: I know there’s a lot of pessimism about the cell therapy space due to challenges with manufacturing, scalability and scrutiny about drug costs. However, in my opinion, this is likely a pendulum that has swung a bit far toward negative sentiment. Adaptimmune (NASDAQ:ADAP) and Autolus (NASDAQ:AUTL) are two companies that catch my attention as commercial stage, generating revenues, and continuing to be valued as having nothing.

There aren’t any recent M&A deals that I’ve seen supporting strong interest in acquiring cell therapy companies, but the only truism about M&A that I’ve found in biotech is that almost nothing about these deals is very predictable. Not the buyers, not the sellers, not the price. But the signals we’re seeing in 2025 point to more action on the M&A front, and cell therapies are ripe for the plucking at these valuations, in my opinion.

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