Three major U.S. drug companies reported solid first-quarter results despite a strong dollar, amid signs that their investment in pricey new cancer drugs will be a key driver of Big Pharma’s growth.

Pfizer Inc., Merck & Co. and Bristol-Myers Squibb Co. have made big pushes into an oncology market that IMS Health predicts will grow to $100 billion in 2018 from $74 billion last year. 

Since last summer, each company has begun selling a new cancer drug that is expected to generate blockbuster sales, following unusually rapid drug development and regulatory review timelines. The companies said Tuesday the drugs were off to strong starts.

The companies’ interest in cancer is fueled by “tremendous science” that is leading to drugs with significant survival benefits, which the U.S. Food and Drug Administration is approving relatively quickly, said Credit Suisse analyst Vamil Divan. 

And the drugs are profitable: Companies are charging high prices for the new drugs, while deploying smaller sales forces than those needed for drugs prescribed by primary-care doctors, said Dr. Divan.

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