Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
As I noted five weeks ago, cancer statistics are both staggering and disappointing. Although cancer deaths per 100,000 people have been on the downswing since 1991 thanks to access to more effective medications and better awareness about the negative health effects of smoking, there is still a lot of research and progress yet to achieve. My focus in this 12-week series is to bring to light both the need for continued research in these fields, as well as highlight ways you can profit from the biggest current and upcoming players in each area.
Over the past four weeks, we've looked at the four cancer types most expected to be diagnosed this year:
Today, we'll turn our attention to the projected fifth-most diagnosed cancer: melanoma.
The skinny on melanoma
Melanoma is a type of skin cancer expected to be diagnosed in 76,690 people this year and lead to approximately 9,480 deaths. In these figures, we can already see a vast improvement from many of the previous four most-common cancers in that melanoma, while deadly in its advanced stages, can be treated with great efficacy if caught early and in a localized state. Increased public awareness about the dangers of long-term sun exposure and an understanding of one's family history with regards to melanoma occurrences has helped boost five-year survival rates of melanoma from just 82% in 1975-1977 to 93% in 2002-2008, according to the American Cancer Society (link opens PDF).
Still, numerous cases aren't caught early enough, with five-year survival rates dipping to a dismal 15% if the disease has metastasized throughout the body. Unfortunately, while signs and symptoms are somewhat apparent -- taking the form of moles or areas of the skin that change color, shape, or appearance -- melanoma is a type of cancer known to spread aggressively if left untreated. In essence, its curability rate can be quite high if caught early, but it's not the type of cancer you take a wait-and-see approach with. It's also worth noting that men are increasingly more likely to get this aggressive form of skin cancer than women.
Typical treatment for early stage melanoma would involve either surgical excision, electrodessication and curettage (a fancy phrase meaning using an electric current to destroy the cancer cells, then removing them with a curette), or cryosurgery. In some cases, radiation therapy is given to ensure cancer cell death. In more advanced cases of melanoma, a combination of surgery, immunotherapy, chemotherapy, or radiation therapy may be administered.
Where investment dollars are headed
As you might imagine, self-cancer diagnosis are often frowned upon by physicians, but there are few cancers where self-awareness is more paramount to early detection than skin cancer. Therefore, the majority of research and development dollars isn't being spent on early detection. Instead, biopharmaceutical companies have focused their efforts on bettering and extending the quality of life for patients with advanced melanoma.
As is the case with all the previous commonly diagnosed cancers that have preceded melanoma, there have been quite a few cases of failure. Synta Pharmaceuticals (NASDAQ: SNTA) lost 79% of its share value in a single day after halting a metastatic melanoma trial in 2009 for experimental drug Elesclomol. In trials, more patients died taking Elesclomol than in the paclitaxel control arm, thus prompting the company to halt development of the drug. Even Pfizer's Tremelimumab has felt the pangs of rejection -- twice! After dropping development of the drug in 2008 following its failure to show a statistical advantage over the placebo, Pfizer revived the program only to see similar non-statistically significant results as a first-line metastatic melanoma treatment in January of this year.
What's coming down the pipeline
Now that we have a better idea of what types of treatments are available for those with metastatic melanoma, let's have a look at some of the revolutionary therapies that are coming down the pipeline.
Your best investment
Death risk associated with many skin cancers aren't very high, but the research and development dollars being poured into improving the quality of life with regard to melanoma therapies certainly isn't chump change.
If you're willing to roll the dice a bit, I'm very intrigued by the combination treatment in mid-stage development by GlaxoSmithKline. We've seen plenty of therapies fail in late-stage treatments, so don't count your chickens before they're hatched, but Glaxo appears to have discovered a novel way to counter a patients' BRAF resistance while also potentially reducing many of the serious side effects associated with BRAF-inhibiting drugs.
As much as it pains me to say this, because I feel CEO Lamberto Andreotti has done a miserable job leading his company, Bristol-Myers Squibb looks like the safest investment in treating melanoma. Yervoy has the advantage of being a first-line treatment which gives Bristol-Myers the opportunity to market to a much broader audience than many metastatic melanoma drugs. That, coupled with its $120,000 price tag and the potential for additional indications, makes it the most promising long-term melanoma treatment.
Stay tuned next week when we tackle the current and upcoming therapies for the treatment of bladder cancer in this Tackling Cancer series.