By Peter Loftus 

CHICAGO--A new crop of cancer immunotherapy drugs is showing promise in a widening range of tumor types, while researchers home in on ways to predict which patients are likely to benefit most from the drugs.

Studies released Friday at the annual meeting of the American Society of Clinical Oncology showed drugs from Bristol-Myers Squibb Co. and Merck & Co. were effective in shrinking tumors in patients with cancers of the lung, liver, head and neck. The drugs, Bristol's Opdivo and Merck's Keytruda, were previously approved to treat the skin cancer melanoma, while Opdivo has also been approved to treat a type of lung cancer.

Other studies have shown potential for the new wave of immunotherapy drugs to treat cancers of the blood, bladder, kidney and breast. Some of the findings need to be confirmed in larger studies, and these uses haven't been approved by regulators.

Goldman Sachs estimates the market for immunotherapy drugs could reach $40 billion to $50 billion in annual sales, fueled by their use in a broad range of cancers. The drugs also are costly--about $150,000 per patient if used for a year for each of Opdivo and Keytruda.

Opdivo and Keytruda are known as PD-1 inhibitors, and they work by lifting a natural brake on the body's immune system, which allows immune cells to destroy cancer cells. Similar drugs are being developed by Roche Holding AG, AstraZeneca PLC and a partnership between Pfizer Inc. and Merck KGaA.

Opdivo was approved in March to treat a type of lung cancer called squamous non-small cell lung cancer. On Friday, researchers presented results of a study that could support widening its use to include treating a more common form of lung cancer, known as non-squamous non-small-cell lung cancer.

The late-stage study showed that patients receiving Opdivo had a median overall survival of 12.2 months, versus 9.4 months for patients taking a comparator drug, the chemotherapy docetaxel, according to an ASCO summary of the results. Adverse events associated with Opdivo included fatigue and nausea but were generally less severe than in patients taking docetaxel.

Bristol in April stopped the study early because of the superior efficacy of Opdivo, allowing patients who had been taking docetaxel to switch to Opdivo.

Certain biological markers in patients might be able to help predict which ones respond best to the drugs. The benefit from Opdivo even greater in patients whose tumors had significant expression of a substance called PD-L1, which interacts with PD-1 on immune cells. Among these patients, the median overall survival of those taking Opdivo was 17 months versus 9 months for docetaxel.

Bristol and other companies are developing diagnostic tests to assess PD-L1 expression, which they say can help doctors predict which patients might respond best to the drugs. But so far, the PD-L1 tests haven't been shown to rule out candidates for treatment because some patients with little or no PD-L1 expression on their tumors have nevertheless responded to the drugs in studies.

In a separate study of Merck's Keytruda, patients with colorectal and other gastrointestinal tumors, who had a certain genetic trait, had a higher tumor-shrinkage rate than patients who didn't have this trait. The genomic marker is called "mismatch repair deficiency," which leads to an accumulation of genetic mutations in a tumor. Researchers who led the study suggested the genetic marker could be useful in predicting responses to immunotherapy in additional tumor types.

"Our results show an approach for the treatment of a specific class of tumors that is based solely on genetic status that is, without regard to the underlying tumor type," the researchers wrote in an article the New England Journal of Medicine published online Friday.

In a small, early-stage study released Friday, Bristol's Opdivo shrank tumors significantly in 19% of patients with advanced liver cancer, and 62% of patients were alive one year after starting treatment. The average overall survival for advanced liver cancer is 10 to 11 months, according to ASCO. The most common reported adverse events in the Bristol-funded study included abnormal liver enzymes and rash.

In another study, about 18% of patients with advanced head and neck cancer experienced significant tumor shrinkage after taking Merck's Keytruda, with side effects including fatigue and rash.

Write to Peter Loftus at peter.loftus@wsj.com

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