Sellas Life Sciences (SLS) and ImmunityBio, Inc. (IBRX) gained attention in June as the biotech sector headed toward a strong monthly finish, with Edison Investment Research highlighting ongoing opportunities across immuno-oncology and cancer-treatment areas. The SPDR S&P Biotech ETF (XBI) rose 17% in June, while SLS surged 53% and IBRX gained 10% during the same period. Edison stated oncology still offers "continued opportunities" from immuno-oncology, antibody-drug conjugates, bispecifics, targeted therapies, radiopharmaceuticals and molecular diagnostics. The analyst commentary came amid increased biotech M&A speculation and attractive sector valuations, with both companies developing cancer immunotherapies targeting different mechanisms.
SLS and IBRX Post Double-Digit June Gains
The SPDR S&P Biotech ETF (XBI), which includes both SLS and IBRX, headed for one of its strongest monthly performances since December 2023. XBI rose 17% in June, while SLS surged 53% and IBRX gained 10%, with both the broader biotech ETF and SLS outperforming ImmunityBio during the month. Over the past year, SLS stock surged 510%, while IBRX gained 212% over the same period.
Edison Identifies Oncology Opportunities Across Multiple Modalities
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 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 works by boosting cancer-fighting immune cells, including natural killer cells, CD8+ T cells and memory T cells.
Sellas Regal Trial Reaches 78 of 80 Events
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 called the delay in reaching the final event "a profoundly positive signal," saying it suggests patients may be living longer than projected.
ImmunityBio FDA Decision Date Set for Jan. 6, 2027
ImmunityBio 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.
Biotech M&A Activity Supported by Patent Cliff and Valuations
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 buyout speculation 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. Edison expects dealmaking to remain an important driver as major drugmakers face patent expiries and look to "supplement internal R&D with externally developed assets."
FDA Approvals Remain at Favorable Level
Edison sees the FDA as "broadly supportive of medical innovation." Edison cited accelerated review pathways, the Commissioner's National Priority Voucher program, and greater flexibility in rare disease and genetic medicine as areas likely to remain in focus. Edison noted that FDA approvals remained at a "favorable level," with 52 new molecular entities approved in 2025, only slightly below the recent 10-year average of 55.
FAQ
What did SLS and IBRX stock do in June?
SLS surged 53% in June, while IBRX gained 10% during the same period. The SPDR S&P Biotech ETF (XBI), which includes both stocks, rose 17% in June.
What is the FDA decision date for ImmunityBio's Anktiva expansion?
The FDA accepted ImmunityBio's application seeking to expand Anktiva plus BCG into a broader bladder cancer population, with a Jan. 6, 2027, target decision date.
How many events has the Sellas Regal trial reached?
The Sellas Regal trial for GPS in AML has reached 78 of the 80 events needed to trigger final analysis.
