Is Trillium Therapeutics Stock a Buy?

Is Trillium Therapeutics Stock a Buy? Cancer is a ruthless disease. Cells grow out of control, taking over the body organ by organ and system by system until it can no longer function. It’s painful, debilitating, and deadly, second only to cardiovascular disease in terms of how many lives are lost.

In 2017, an estimated 9.6 million people died of cancer worldwide. That means cancer is responsible for one out of every six deaths. By the end of 2020, there will be approximately 1.8 million new cancer diagnoses in the United States alone. 

One of the biggest challenges in fighting this dreaded disease is that in some ways, the treatment can be as debilitating as the cancer itself. Surgery is often required to control tumors, and radiation eliminates cancer cells through targeted energy.

Chemotherapy goes after cancer with powerful medications that cause disruption throughout the body. Patients commonly experience nausea, exhaustion, and hair loss – and that is just the beginning. 

Companies like Trillium Therapeutics are in pursuit of new cancer treatments – therapies that are more effective at destroying cancer cells and less likely to impact healthy cells. If successful, such companies stand to generate handsome profits, which is great news for investors. 

The problem is, of course, which company is most likely to achieve success? Is Trillium likely to find a breakthrough in cancer treatment? Specifically, is Trillium Therapeutics a good investment? 

TRIL Makes Cancer Invisible To Immune System?

Trillium Therapeutics is taking a new approach to cancer treatment. The concept involves harnessing the power of the immune system to go after cancerous cells.

Researchers are looking at a molecule referred to as CD47. This molecule defends cells, including cancerous cells, from the immune system by sending a “don’t eat me” signal.

Essentially, CD47 makes cancer invisible to the immune system. 

The concept behind Trillium’s approach involves blocking the messages that CD47 sends out. When successful, the cancer cells lose their protection. They become visible to the immune system, which then goes on the attack. 

Trillium is developing molecules that work to treat cancer in two ways. First, they block CD47, so the immune system can see and fight the abnormal cells. Second, they prompt the immune system to work harder, increasing the likelihood of eliminating the cancerous cells. 

These treatments are still in the research phase, and there is a long way to go before they are approved for general use. However, if Trillium is successful in bringing an effective product to market, it could transform cancer treatment protocols and increase survival rates exponentially.

Can Trillium Therapeutics Competitors Win?

Trillium Therapeutics isn’t the only biotech working on a CD47-related treatment. Companies like AbbVie (ABBV) and Gilead Sciences (GILD) are putting huge amounts into research and development, as well.

More importantly, from the standpoint of competition, Gilead Sciences is further along in its clinical trials. It could, theoretically, bring a product to market long before Trillium Therapeutics. 

However, the Trillium CD47-blocking molecules have some important characteristics that others don’t. One of the most critical is that they don’t bind to red blood cells, which limits side effects like anemia.

Another critical difference is the fact that Trillium’s molecules serve two functions simultaneously – they block CD47, and they activate the immune system. 

For the moment, competing products only block CD47, so a separate treatment is necessary to activate the immune system. That means that even if another company beats Trillium to market, the Trillium molecules may still be the first choice among physicians and patients. 

Is Trillium Therapeutics Stock a Buy?

TRIL made headlines in early September with two major announcements. First, they published an update on the studies in progress for two versions of the dual-action CD47 molecule in development. So far, results are positive, which is a sign of good things to come. 

Second, Trillium announced a new partnership with Pfizer (PFE). The market-leading pharmaceutical company is investing $25 million in Trillium’s common stock.

Pfizer’s senior vice president and chief scientific officer for oncology research and development is also slated to join Trillium’s Scientific Advisory Board, which gives an important boost to investor confidence. 

Investors immediately responded to these announcements with a flurry of trades that drove share prices up. Overnight, they increased roughly 40 percent in value. When added to growth since the start of the year, that puts share prices up by 1,260 percent in 2020. 

Some wonder if additional investment in Trillium makes sense, given its recent growth. Are shares capable of delivering additional value for new investors? Generally, analysts say yes.

The company’s current market cap is approximately $1.2 billion now, but analysts expect it to reach $10 billion within the next three years. That could deliver an increase of almost 1,000 percent in stock value over the same period. In other words, Trillium Therapeutics is a buy. 

Before You Buy TRIL Stock, Know The Risks

The biggest risk associated with investing in Trillium Therapeutics is the same risk that any biotech investment carries. Simply put, the treatment might never come to market.

There are dozens of hurdles that any new drug or treatment must successfully clear before being approved for general use. It is common – even likely – that along the way, something will go wrong.

For example, promising treatments are found to be ineffective when tested against real-world conditions, or they cause serious side effects that outweigh benefits to patients. 

With that said, investors who are willing to accept higher-than-average risk may find themselves reaping higher-than-average rewards.

When effective new therapies do get to market, massive profits often follow. The key is to carefully evaluate specific biotech firms before buying in. Understanding the company’s science, strategy, and leadership is an important step in identifying those most likely to succeed. 

Is Trillium Therapeutics Stock a Buy? The Bottom Line

Biotech investing isn’t for everyone. Risk-averse investors are better off with more established companies. However, those that are willing to ride the biotech roller coaster in search of higher returns are right to bet on Trillium Therapeutics.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.