Piper Sandler Positions for Oncology's Golden Age: Why Biotech Investors Should Take Note

The oncology therapeutics sector is undergoing a revolution, driven by breakthroughs in targeted therapies, immunotherapies, and AI-enhanced drug discovery. With the FDA approving 13 novel oncology therapies in 2025 alone, the stage is set for companies capable of translating cutting-edge science into clinical success. Piper Sandler, bolstered by the expertise of Senior Analyst Kelsey Goodwin, is positioning itself as a critical guide for investors navigating this high-stakes landscape. Here's why oncology-focused biotechs—and the analysts behind them—are critical to your portfolio.

The Oncology Boom: A Data-Driven Opportunity

The oncology market is projected to exceed $200 billion by 2030, fueled by personalized medicine, gene-editing tools, and therapies addressing hard-to-treat cancers. Yet not all biotechs will thrive. Success hinges on clinical execution, cash reserves, and partnerships—factors Piper Sandler's research rigorously evaluates.

Piper's BioInsights platform, which tracks over 150 biotech firms, highlights key trends:
- AI-driven drug discovery: Firms like Acrivon Therapeutics (NASDAQ: ACRV) are leveraging machine learning to identify novel targets (e.g., WEE1/PKMYT1 inhibitors).
- CAR-T and TIGIT inhibitors: iTeos Therapeutics (NASDAQ: ITOS) is advancing belrestotug, a TIGIT inhibitor with potential in lung cancer, while Elevation Oncology (NASDAQ: ELEV) targets Claudin 18.2 in gastric cancers.
- Strategic focus: Companies like Acrivon are streamlining pipelines to prioritize high-value indications, such as endometrial cancer, to maximize FDA's accelerated approval pathways.

Kelsey Goodwin: The Analyst Driving Piper's Oncology Edge

Kelsey Goodwin, Piper Sandler's Senior Analyst specializing in oncology biotechs, is a linchpin of this strategy. With over 15 years in life sciences equity research, Goodwin's insights blend deep scientific literacy with market acumen. Her work has spotlighted:
- Regulatory shifts: The FDA's push for diverse clinical trial populations and real-world evidence integration, which favor companies with global trial networks.
- High-risk, high-reward catalysts: She emphasizes Q2 2025 milestones like iTeos' Phase 3 PFS data and Acrivon's Phase 1 results for ACR-2316.
- Financial discipline: Firms with cash reserves extending beyond 2027 (e.g., iTeos' $624M) are better positioned to weather clinical setbacks.

Goodwin's Forbes Best-in-State Wealth Advisor recognition underscores her ability to translate complex science into actionable investment themes. Her reports, often cited by peers, highlight how strategic pivots—like iTeos halting its inupadenant program to focus on belrestotug—can unlock value in volatile markets.

Key Oncology Plays to Watch: Data-Backed Insights

- iTeos (ITOS): With a $1.3B valuation, ITOS offers downside protection and upside leverage tied to its Q2 PFS data. Piper's Overweight rating ($12 price target) reflects belrestotug's potential in a $10B+ lung cancer market.

• Acrivon (ACRV): Its AI-driven AP3 platform and focus on endometrial cancer (ACR-368's NDA by 2026) justify Piper's Overweight stance. Analysts note its $185M cash runway and strategic leadership shifts as positives.

• Elevation (ELEV): The Claudin 18.2 space is crowded, but ELEV's Fast Track designation and Phase 1 data showing a 42.8% confirmed ORR in gastric cancer patients position it as a leader.

Risks and Mitigation: Navigating Oncology's Volatility

The sector's risks are well-documented:
- Clinical trial failures: 60% of oncology Phase 3 trials fail, with Q2 data readouts critical for ITOS and ACRV.
- Competitor overlap: Roche's tiragolumab (TIGIT) and Mirati's adaglenstat (Claudin 18.2) pose threats.
- Valuation ceilings: Overhyping unproven mechanisms (e.g., macrophage reprogramming) could lead to sell-offs.

Piper Sandler's advantage? Its sector-specific diligence identifies firms with differentiated assets and financial flexibility. For instance, Acrivon's preclinical programs targeting cell cycle pathways offer a secondary growth vector, while Elevation's global trial design mitigates regulatory hurdles.

Investment Strategy: Prioritize Pipeline Depth and Execution

Investors should focus on firms with:
1. Late-stage assets with clear catalysts (e.g., ITOS' Q2 PFS data).
2. AI/ML platforms that accelerate drug discovery (e.g., ACRV's AP3).
3. Strategic resource allocation—avoiding overextended pipelines.
4. Partnerships: Collaborations with Big Pharma (e.g., ELEV's ties to Roche) can provide capital and expertise.

Piper's BioInsights platform and Goodwin's coverage are invaluable tools to separate winners from losers. Consider:
- Short-term traders: Ride ITOS' data catalysts but set strict stop-losses.
- Long-term investors: ACRV's multi-year pipeline and ELEV's first-mover advantage in Claudin 18.2 warrant a buy-and-hold stance.

Conclusion: Oncology's Next Phase Demands Discernment

The oncology sector is no longer about broad-market bets—it's about precision. Piper Sandler's deep dive into mechanisms, execution, and valuation equips investors to capitalize on this shift. With Kelsey Goodwin at the helm, the firm's research isn't just analysis—it's a roadmap for navigating the next wave of cancer drug innovation.

For investors, the message is clear: Oncology's golden age requires oncology-focused analysts. Follow the data, the catalysts, and the experts who understand both.

Disclosure: The author holds no positions in the stocks mentioned. Past performance does not guarantee future results.