Top 5 Oncology Stocks to Watch According to Barclays

Published 22/09/2025, 16:10
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Investing.com -- Barclays has identified several promising opportunities in the Oncology and Inflammation & Immunology (I&I) sector, highlighting companies with innovative protein degradation platforms and targeted therapeutics.

The stocks are said to present compelling investment cases based on upcoming catalysts, clinical data, and current valuations.

1. Kymera Therapeutics (KYMR)

Barclays initiated coverage with an Overweight rating and $60 price target, emphasizing KYMR’s encouraging early clinical data for KT-621, a STAT6 degrader being developed for I&I indications.

The market has shown strong appetite for oral I&I assets with meaningful clinical activity. Multiple strategic partnerships involving STAT6 degraders, including deals between Sanofi/Nurix, Gilead/Leo Pharma, and Kaken/Johnson & Johnson, underscore industry interest in this approach.

Barclays sees significant upside potential ahead of important proof-of-concept data for KT-621 expected in Q4 2025.

Kymera Therapeutics reported second-quarter 2025 revenue of $11.5 million and an earnings per share loss of $0.95, results which fell short of analyst forecasts. The company also received several price target increases from firms including H.C. Wainwright and Wolfe Research.

2. Janux Therapeutics (JANX)

With an Overweight rating and $47 price target, Barclays highlights JANX’s promising clinical data in metastatic castration-resistant prostate cancer (mCRPC).

JANX007 has demonstrated progression-free survival and PSA reduction responses that outperform other late-line mCRPC options and compete with standard-of-care treatments in earlier settings.

Barclays considers JANX significantly undervalued given the data observed to date and the market opportunity in prostate cancer.

In a recent development, Janux Therapeutics announced the departure of its Chief Strategy Officer. The company also received new Buy ratings from several firms, including Truist Securities, Stifel, and Guggenheim.

3. Arvinas (ARVN)

Barclays assumed coverage with an Overweight rating and $16 price target. Despite disappointing Phase 3 data for vepdegestrant in breast cancer, ARVN currently trades at a discount to its cash balance.

Barclays notes that target selection is crucial for protein degradation platforms, emphasizing targets that demonstrate clear clinical benefit compared to other approaches. The firm sees multiple opportunities for upside from Arvinas’ early-stage clinical programs in oncology and neurology.

Arvinas and its partner Pfizer announced plans to jointly out-license the commercial and development rights for their investigational breast cancer treatment, vepdegestrant. Following the news, firms including Barclays and Stephens lowered their price targets on the company.

4. C4 Therapeutics (CCCC)

Initiated at Overweight with an $8 price target, C4 Therapeutics is developing small molecule protein degrader therapeutics for various cancers.

Its lead asset, cemsidomide (CFT7455), is an IKZF1/3 degrader for multiple myeloma and non-Hodgkin lymphomas. Early Phase 1 data has been encouraging, with updated multiple myeloma data expected September 17-20 and NHL data in Q4 2025.

Barclays views cemsidomide as potentially best-in-class in a category where first-generation degrader Revlimid reached peak sales of $12.9 billion.

C4 Therapeutics reported that its investigational drug cemsidomide achieved a 50% overall response rate at its highest dose level in a Phase 1 trial for patients with multiple myeloma. Additionally, Stephens upgraded the company to Overweight, and Guggenheim initiated coverage with a Buy rating.

5. CytomX Therapeutics (CTMX)

Barclays assumed coverage with an Overweight rating and $3.50 price target, citing positive risk-reward for lead program CX-2051 (EpCAM Probody drug conjugate).

The company announced encouraging interim results from its dose escalation study in advanced colorectal cancer patients, with an update expected in Q1 2026.

With a cash runway extending to Q2 2027, CTMX has financial flexibility through upcoming catalysts, and Barclays currently assigns $1 per share to the CX-2051 program.

CytomX Therapeutics reported a revenue decline and an earnings miss for its second quarter of 2025.

The company also provided a safety update from its Phase 1 study of CX-2051, reporting a Grade 5 treatment-related adverse event in one patient.

Barclays also highlighted MacroGenics, Merus, Protagonist Therapeutics, Scholar Rock,and Terns Pharmaceuticals, as other Overweight-rated names in the sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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