GSK’s US$10.6b move to buy Nuvalent has pushed oncology back into the spotlight, reminding investors how a single deal can reshape expectations across cancer drug developers and related healthcare stocks. When a large buyer pays up for late stage lung cancer assets, it can reset how the market thinks about pipelines, partnerships and future deal potential across the sector. This article looks at 3 stocks from our Healthcare Oncology Pharmaceuticals screener that are exposed to this news, and explains why the same headline could matter very differently for each one.

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Arcellx (ACLX)

Overview: Arcellx develops cell based immunotherapies for hard to treat blood cancers and other severe diseases, with lead CAR T candidates targeting multiple myeloma, acute myeloid leukemia and myelodysplastic syndrome, and also has programs aimed at solid tumors, now backed by Gilead as its parent.

Operations: Arcellx generates US$22.3m in revenue from Pharmaceuticals, all from the United States.

Market Cap: US$6.8b

Arcellx operates at the intersection of advanced oncology research and strong investor interest in the sector, similar to what the Nuvalent deal has brought back into focus. Its cell therapy pipeline for multiple myeloma and blood cancers fits within the type of late stage, next generation oncology assets that larger buyers have been monitoring. At the same time, the stock trades at a notable discount to one internal fair value estimate despite a high P/B ratio and ongoing losses. Forecasts in the market suggest significant potential for revenue and earnings, but investors may also consider factors such as recent insider selling, share price volatility and reliance on external funding. Combined with Gilead ownership and a partnership with Kite, these elements indicate that there is more to this story than a single headline implies.

Arcellx’s mix of a high P/B ratio, discounted fair value estimate and Gilead backing suggests the current price may not reflect the full story, so it is worth reviewing the DCF valuation analysis for Arcellx

Seagen (SGEN)

Overview: Seagen is a biotechnology company that develops and sells cancer treatments, including antibody drug conjugates like ADCETRIS and PADCEV and targeted therapies such as TUKYSA, for blood cancers and solid tumors in the United States and internationally.

Operations: Seagen generates about US$2.3b in revenue from the development and sale of pharmaceutical products, all reported from the United States.

Market Cap: US$43.2b

Seagen sits in the middle of what the Nuvalent deal is highlighting: late-stage cancer drugs with potential for new indications and partnerships. However, its setup is not straightforward. Analysts expect revenue to grow around 22.6% each year and earnings to improve sharply if profitability returns, yet the stock already trades above one fair value estimate and at a much higher P/S ratio than many peers. The company is also funding itself mainly through higher-risk external borrowing while still reporting losses, which raises questions about how long that model can run. With multiple approved therapies, active regulatory reviews and collaboration deals, much depends on whether future approvals and cash flows justify today’s pricing and risk profile.

Seagen’s accelerating drug portfolio and higher P/S ratio hint that the story might be bigger than the current headlines suggest, but the real tension lies in how future growth meets today’s pricing in the analyst forecasts for Seagen

Legend Biotech (LEGN)

Overview: Legend Biotech develops and commercializes cell therapies for cancer, led by its CAR-T treatment for multiple myeloma, and is building a broader portfolio across blood cancers and hard to treat solid tumors in the United States, China and Europe.

Operations: Legend Biotech generates about US$1.1b in biotechnology revenue, with roughly US$856.9m from the United States, US$28.1m from China and US$254m from other markets.

Market Cap: US$6.1b

Legend Biotech sits in the middle of what the Nuvalent deal has brought back into focus: companies with late stage oncology assets already in use and a deep bench of next generation programs. CARVYKTI is driving substantial biotechnology revenue and is supported by expanding trials such as CARTITUDE 5 and 6. Early data from in vivo CAR T programs and solid tumor candidates like the DLL3 and Claudin 18.2 therapies highlight how Legend is pushing into new indications, including lung and gastric cancers that are central to GSK’s latest move. At the same time, the company is still unprofitable, heavily dependent on one commercial product and reliant on external funding. The key consideration for investors is how that mix of growth, concentration risk and valuation may evolve from here.

Legend’s accelerating CAR-T story and concentrated revenue base can look like a simple growth trade, but the real twist lies in how trials, funding needs and valuation intersect in the analysis report for Legend Biotech

The three stocks covered here are just a starting point, and the full Healthcare Oncology Pharmaceuticals screener has surfaced 25 more companies with similarly compelling cancer focused stories waiting to be compared side by side in the Healthcare - Oncology Pharmaceuticals screener. Use Simply Wall St to identify and analyze the specific catalysts, funding profiles and pipeline narratives that matter most to you so you can focus on the highest conviction ideas in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.