For the first time someone has come up with a similar way to bet on a trend within biotechnology. For example, that immunotherapy is the next big thing for cancer.
Brad Loncar, a private investor who created the Loncar Caner Immunotherapy Index, has crafted an Exchange Traded Fund for investors.
Loncar realized that individual investors curious about the science of immunotherapy didn’t have the time or expertise to pick individual stocks, but may be interested in a diversified investment vehicle to bet on the trend. Other specialized Exchange Traded Funds have started to gain traction, which made Loncar wonder if there might be a market for such a thing in cancer immunotherapy. Especially since the field has taken off in the past 4 – 5 years.
The Loncar Cancer Immunotherapy Index Exchange Traded Fund will begin tranding on the NASDAQ at $25 a share on Wednesday, October 14th. The ticker is CNCR.
The basket is made up of 30 different companies that are working at various stages of developing on treatments that trigger the immune system to fight cancer. There are numerous established companies on the list such as Merck & and Co. and Bristol-Myers Squibb.
Loncar weighed the Exchange Traded Fund so that is includes seven big, diversified companies with major R&D in immunotherapy, along with 23 smaller more speculative companies.
The biotech market has recently been tumultuous driven by concerns about drug price gouging.
The Loncar Cancer Immunotherapy Index Exchange Traded Fund is down 20.18% since its inception in April, compared with a 17.39% decline in the Standard and Poor’s biotech index over the same time frame.
The comparisons looks more favorable to immunotherapy when the components are back-tested over the full year, which suggest that there may be slightly more volatility in immunotherapy than in biotech on the whole.
Despite the volatile market, excitement in immunotherapy is tangible in scientific circles.
No one knows what he next 10 weeks or the next 10 years will bring, but the bet is that immunotherapy will change cancer over the next 10 years.