AI fuels cancer research: Bayer, Vidac Pharma, and Pfizer are the next 150% winners

Bayer – Operational strength and AI as key factors for growth

Last year, Bayer continued to drive forward its strategic realignment, focusing primarily on innovation and digitalization. The pharmaceutical company is relying on artificial intelligence in cancer research. In the BORN project, AI-supported methods for early cancer diagnosis and personalized treatment were developed with EUR 2 million in funding. These AI methods enable precise evaluation of radiology data and biomarkers and significantly improve diagnostics and therapy planning. Researchers at Bayer and its partners are now combining AI with molecular biology approaches to analyze tumor tissue more accurately and enable personalized therapies. AI is also being used to accelerate drug discovery and optimize radiological diagnostic procedures. This strengthens innovation and contributes to operational resilience.

In the last quarter, the Pharmaceuticals division benefited greatly from the growth drivers Nubeqa and Kerendia, with revenue increasing by up to 67%. In the agricultural sector, sales of corn seeds rose despite declines in other products. Legal risks related to glyphosate and PCB resulted in provisions for litigation of EUR 1.7 billion, which had a negative impact on overall earnings. Nevertheless, consolidated revenue and adjusted earnings per share rose significantly, and Bayer revised its annual outlook upward. Despite high litigation costs in glyphosate matters and regulatory pressure, Bayer is back on a solid operational footing and is benefiting from strong growth in pharmaceuticals and agriculture. The integration of AI into cancer research shows Bayer to be an innovative pioneer, which opens up new growth opportunities in the long term. Analysts on the LSEG platform have recently changed their tune. After many years of pessimism, the average 12-month price target has risen gradually from EUR 23.50 to EUR 28.50. Seven out of 22 experts are once again recommending a "Buy". If the technical breakthrough at EUR 28 is now achieved, the EUR 35 mark is within reach. If analysts' forecast of EUR 4.70 earnings per share in 2026 proves accurate, Bayer is currently valued at a very attractive P/E ratio of just 5.9. In the medium term, Bayer is once again very interesting, and the reduced dividend should now rise again!

Vidac Pharma receives US patent and advances development of targeted cancer therapies

Vidac Pharma is currently performing extremely well and has long established itself as an innovative player in the field of oncological therapies. Experts are particularly excited about developments surrounding the drug candidates VDA-1275 and VDA-1102, which are based on a unique concept: the targeted reversal of cancer cell metabolism to restore normal cell function. This approach is considered a potential milestone in cancer treatment and could significantly change therapy options in the future.

Founded in 2012 by Prof. Max Herzberg, Vidac Pharma has already made impressive progress in clinical development despite its relatively low market capitalization of around EUR 27 million. The Company has now taken another decisive step: the US Patent and Trademark Office has granted a comprehensive patent covering its novel HK2-splitting compounds. These novel active ingredients are designed to selectively target HK2-expressing cancers, opening new possibilities in the treatment of various tumors. This patent not only secures Vidac Pharma a crucial technological edge but also strengthens its position as a leader in targeted cancer therapies.

The protected technology encompasses innovative approaches and methods that directly intervene in tumor metabolism. The aim is to reverse the so-called Warburg effect and thus create a tumor environment that is more favorable for the immune system. HK2, a key enzyme for the survival and growth of many tumor cells, is at the center of this research. CEO Dr. Max Herzberg describes the latest patent approval as a decisive milestone for the Company's strategic orientation. It significantly strengthens Vidac Pharma's position as a pioneer in the field of metabolic therapeutics. The role of mitochondria and their influence on tumor biology is increasingly becoming the focus of modern cancer research. Vidac Pharma plans to deepen this line of research further and establish itself as a leading force at the forefront of this scientific field. The combination of precise molecular interventions and a deep understanding of cellular metabolic processes is giving rise to entirely new therapeutic approaches. In the long term, this strategy could help overcome therapy resistance and significantly improve treatment outcomes.

Despite this promising progress and a strong pipeline, the stock remains significantly undervalued at EUR 0.48 to 0.60. In summer 2024, the renowned analysis firm Sphene Capital confirmed a "Buy" rating with a price target of EUR 4.90, highlighting considerable upside potential through 2027. As additional milestones are achieved, the valuation is expected to rise substantially.

Pfizer – Donald Trump calls for lower drug prices

Pfizer is the first US pharmaceutical heavyweight to launch targeted price cuts for prescription drugs under pressure from the government, a paradigm shift that sends a signal to the entire sector. The focus is on the Medicaid program, which will benefit from massive price reductions in the future. In addition, Pfizer is securing duty-free status and presenting record investments of USD 70 billion in research, development, and the expansion of US production. Pfizer is using AI to accelerate the search for active ingredients, particularly via platforms for simulating and modeling molecules. Partnerships with tech companies such as XtalPi and CytoReason are significantly optimizing the discovery of new active ingredients and the prediction of efficacy and selectivity. AI-supported analyses help to process relevant patient data on a large scale and identify new targets for drug development.

CEO Albert Bourla emphasizes the relief this package brings to American patients and the strengthening of domestic locations. For investors, the package signals a smart adaptation to new political realities and offers opportunities for market share gains in the core US market. PFE shares appear to have bottomed out at around EUR 20. Additionally, investors can look forward to a dividend yield of 6.4%.

Bayer, Vidac Pharma and Pfizer are doing very well in the development process. All three stocks have mastered the consolidation of recent months with flying colors. Now, price premiums are beckoning. Vidac Pharma should make further progress with the tailwind of patent protection in a protected environment.