Progress in Cancer Research Is Accelerating and Intensifying

Cancer remains one of the leading causes of death globally. Despite significant strides in diagnosis and treatment, there is still much to achieve. Yet, the pace of oncological research is rapidly accelerating, igniting hope for breakthrough therapies and significantly improved outcomes in the future.

Advancement is Accelerating

The pace of advancement in the research and development of cancer therapeutics is accelerating. A McKinsey report highlighted that it took about eight years between the first therapy in 1999 for HER2-positive patients and the next, while it only took two years between the first and second PARP inhibitors (2013).[1],[2]

Research Is Intensifying

Simultaneously, oncological research is intensifying, with an increasing number of cancer therapeutics in development and a high volume of ongoing clinical trials.

Drug Trials Increasing

IQVIA, a global healthcare consulting company, reported that oncology trials remained at historically high levels in 2022, up 22% from 2018, and are primarily focused on rare cancers.[3]

Additionally, new types of treatments are also in the development stage. There are more than 250 active CAR T-cell trials, while mRNA vaccine development has nearly doubled since 2017.[3]

More Cancer Medications are Hitting the Market

A large number of new cancer medications have been released. Over the five years through 2022, an average of 23 new cancer medications per year were launched. Cumulatively, 115 new medications were launched globally in the last five years, and 237 since 2003.[3]

In the US, 134 unique cancer medications were launched in the past ten years, many of which have been approved for more than one indication.[3]

Cancer research is also a focus area for the ten largest global pharmaceutical companies, which have an estimated 1,700 compounds in development.[4]

Research Spending Rising

Spending on biopharmaceutical research, of which oncology represents a significant portion, rose to $72 billion in 2023, up from $61 billion in 2022.

Additionally, mergers & acquisitions (M&A) activity in the biopharma space also increased to $140 billion from $78 billion.[5] We previously noted that M&A is often how many cancer drugs come to market.6

The Potential Investment Opportunity

The growth in the number of cancer cases globally has and will likely continue to create demand for more effective cancer diagnostic tools and treatment therapies. Medical technology is accelerating and intensifying. Companies that can identify and produce therapeutics that help better identify and more effectively treat cancer may offer individuals a potentially attractive investment opportunity.

How May Investors Gain Exposure to Companies in the Oncology Therapeutics Industry?

The Range Cancer Therapeutics ETF

The Range Cancer Therapeutics ETF (CNCR) seeks to track the performance, before fees and expenses, of the Range Oncology Therapeutics Index. The index aims to track the performance of a portfolio of stocks that are involved in the development and distribution of oncology drugs and treatments.

[1] HER2 positive refers to a specific type of breast cancer.  PARP refers to a specific type of ovarian cancer.
[2] Delivering Innovation, 2020 Oncology Market Outlook, McKinsey & Company, 2020
[3] Global Oncology Trends 2023: Outlook to 2027, IQVIA Institute for Human Data Science, May 2023
[4] Delivering Innovation, 2020 Oncology Market Outlook, McKinsey & Company, 2020
[5]  Global Trends in R&D 2024, IQVIA Institute for Human Data Science, 2024

Disclosures

All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.

ETF shares are traded on exchanges and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of an ETFs’ underlying securities. Brokerage commissions will reduce returns.

The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Moreover, investors will not be able to evaluate the Fund against one or more comparable funds on the basis of relative performance until the Fund has established a track record.

The Range Cancer Therapeutics ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the CNCR ETF prospectus, which should be read carefully before investing and can be obtained by visiting www.rangeetfs.com/cncr, or by calling 1-800-617-0004.

Exchange Traded Concepts, LLC serves as the investment advisor to the Fund. The Fund is distributed by Quasar Distributors, LLC. Quasar is not affiliated with Exchange Traded Concepts, LLC.

Cancer Therapeutics Companies Risk. The success of Cancer Therapeutics Companies heavily depends on the outcomes of clinical trials and obtaining necessary regulatory approvals for the development of new drugs and other treatments for cancer-related conditions. These companies face risks related to the failure of clinical trials, unforeseen safety issues, delays in the regulatory approval process, or failure to obtain approvals altogether. Cancer Therapeutics Companies are highly dependent on the development, procurement and marketing of drugs and the protection and exploitation of intellectual property rights. Changes in healthcare policies, reimbursement rates, patent laws, or regulations governing drug development and commercialization can significantly impact industry and individual companies. These changes may affect profitability, market access, and the viability of certain products or technologies.