The promise of cancer immunotherapy              
By stimulating the natural defences of our immune system, immunotherapy is an area of cancer research which comprises a network of biological processes that protect the body against infections. Tumour cells lurking in a patient’s body can be more easily located and eliminated. However, immunotherapy is not yet effective for all types of cancer or patients living with the disease. As Johns Hopkins School of Medicine revealed, around 15% of patients achieve durable results from the therapy. While some people with melanoma, bladder, and lung cancers are likely to respond to the treatment, those with breast and pancreatic cancers rarely do so. Nonetheless, the still-low patient outcomes have not put a dent into the evergrowing body of scientific research in nations like the US, China, Germany and the UK into the various types of immunotherapy.

The development of cancer immunotherapy   
Contrary to commonly held beliefs that cancer immunotherapy is a relatively recent medical achievement, the earliest known form of the treatment can be traced back to a medical breakthrough in the US towards the late 19th century. Back then, American surgeon William Coley deployed streptococcal organisms – live bacteria – as a form of immunotherapy to treat a patient with inoperable cancer. The observation of regression in the tumour treated this way not only resulted in the scientist gaining the title of ‘father of cancer immunotherapy’ but also in a growing body of research the world over, which has gone on to demonstrate that the human immune system is capable of preventing, controlling, and eradicating cancer cells.

The growing burden of cancer worldwide         
The WHO estimates that tobacco use accounts for 25% of all cancer deaths globally and is the primary cause of lung cancer, while the insufficient intake of vegetables and fruits results in about 14% of gastrointestinal cancer mortality. While there are various therapies available, the optimal choice of treatment will depend on the biological characteristics of a patient’s tumour and how advanced it is. According to the US National Cancer Institute, the federal government’s principal agency for cancer research, key cancer treatments include chemotherapy, surgery, radiation, and targeted therapies, as well as newer techniques like immunotherapy. While some people with cancer may only receive one treatment for their medical condition, most people are likely to be given a combination. Although chemotherapy is the most commonly researched and used therapy for cancer, as data from the US National Library of Medicine have revealed, the treatment is not without the risk of side effects.

Conclusion for investors: widen the scope of immunotherapy to include cancer or oncology   

Cancer is one of the trickiest public health challenges of the 21st century. In view of the growing burden of the illness worldwide and continued advances in medical technologies, the global immunotherapy industry holds great promise in its ability to revolutionise oncology. In the US alone, for example, spending on oncology is expected to reach USD 500 billion by 2040.

The global oncology industry remains largely characterised by large pharmaceutical companies, while the cancer immunotherapy sector broadly comprises pure-play firms with much lower market capitalisation, plus privately held biotech companies.
> Pure-play immunotherapy companies have a very different and much higher risk profile than the established large pharmaceutical companies with a significant portfolio of cancer therapies.
> Furthermore, there remains a risk that some smaller cash-strapped companies may be acquired by the larger industry players or even fail.
For these reasons, established major pharmaceutical and biotechnological companies may offer better risk-adjusted returns over the longer term.