The first generation of blockbuster cancer drugs produced a decade of high returns for the field’s pioneers – Roche, Novartis AG and Celgene Corp.– and ample cash flow to invest in next-generation products. Those days are over. Nearly every major pharma company today aims to lead in oncology. Pipelines are bulging with competing products, and earning superior returns in a crowded market is increasingly difficult.
No question, oncology is one of the industry’s largest and most attractive sectors, with more than $100 billion in sales,...