Bayer, Vidac Pharma, Evotec – Grab your share of the USD 866 billion oncology jackpot

Bayer – Oncology drives growth, Crop Science in transition

Bayer's pharmaceuticals division, led by oncology, is showing strength. New study data on Nubeqa for prostate cancer will be presented at specialist conferences in June, highlighting its role as a growth pillar. In addition, the acquisition of a PRMT5 inhibitor for MTAP-deleted tumor cells strengthens the pipeline. With BAY 2927088 for HER2-mutant non-small cell lung cancer, another candidate is entering late-stage development. These strategic steps underscore Bayer's focus on precision oncology as a key driver of future sales, particularly in international markets.

In the first quarter, Group revenue remained virtually stable at around EUR 13.7 billion on a currency- and portfolio-adjusted basis. While the Pharmaceuticals division performed strongly, with revenue up 4.1% to EUR 4.55 billion, driven by oncology blockbusters Nubeqa™ and Kerendia™, Crop Science recorded an expected decline of 3.3% to EUR 7.58 billion. Regulatory hurdles for crop protection products and shifts in demand for glyphosate had a negative impact here. Consumer Health grew moderately by 2.5% to EUR 1.50 billion. Adjusted EBITDA declined by 7.4% to EUR 4.09 billion across the Group.

Bayer confirms its currency-neutral outlook for the full year. However, the legal risks surrounding glyphosate remain a burden. Special items could be at the upper end of the forecast range of EUR 1.5 billion. The Company is pursuing two approaches in parallel. Negotiations for a settlement in Missouri and a potential Chapter 11 bankruptcy for the Monsanto unit as a contingency plan. Despite the ongoing lawsuits involving approximately 67,000 cases, Bayer remains confident in the safety of glyphosate, supported by the US Environmental Protection Agency (EPA). The share is currently trading at EUR 24.735.

Vidac Pharma - Drug candidate shows promise in clinical trial

Biotech innovator Vidac Pharma has presented promising new clinical data for its lead drug candidate Almavid™. The latest results from a pharmacokinetic praxis test with pediatric brain tumor patients demonstrate the solid pharmacokinetic properties of the subcutaneous formulation. The trial demonstrated high blood stability over more than 24 hours, a quantity of the drug in the blood that is directly proportional to the administered dose, and sustained blood concentration levels across patients. These findings highlight the potential of Almavid™ as a future treatment option for solid tumors, both as a monotherapy and in combination therapies.

The active ingredient specifically targets the Warburg effect. This effect describes the characteristic metabolism of cancer cells, in which they convert glucose at an increased rate despite sufficient oxygen, thereby producing lactate. Almavid™ interrupts the harmful binding of the cancer enzyme hexokinase 2 to certain mitochondrial channels (VDAC1). This reactivates natural cell death in tumor cells and normalizes their energy metabolism, while healthy cells are spared. In addition, the candidate positively influences the tumor microenvironment by promoting immunostimulatory conditions. This is another advantage for its therapeutic breadth. Vidac Pharma is the first company to use these biological findings to develop a therapy.

The Company is backed by a robust portfolio of patents. These protect both the unique mechanism of action against the Warburg effect and the specific applications of the drug candidates. In recent months, the patent portfolio has been expanded in the US, Europe, and Japan. This comprehensive protection secures decisive competitive advantages for Vidac and highlights the value of its platform technology for investors. The share price has recently been trending sideways and appears to be bottoming out. On Friday, the share closed at EUR 0.488.

Evotec - Strategic focus drives innovation

In the field of oncology, Evotec is consolidating its position as a key partner to the pharmaceutical industry. The strategic alliance with Bristol Myers Squibb focuses on targeted protein degradation, a key technology for the development of novel cancer therapies. With "molecular glue degraders," the Company is addressing diseases that have been difficult to treat until now. Combining Evotec's AI-enabled platforms with its partner's drug library creates a promising pipeline. This collaboration underscores Evotec's role as a scientific innovator and generates significant milestone payments.

Evotec's realignment focuses on two core pillars. The Shared R&D division industrializes drug discovery through automation and AI, while Just - Evotec Biologics is growing as a scalable biologics specialist. The Company streamlined its portfolio by 30%, is concentrating on high-margin therapeutic areas, and is developing an asset-light model. The divestment of investments is intended to free up resources for technology development. Cost reduction programs such as "Priority Reset" aim to achieve annual savings of over EUR 50 million by 2028 through process optimization and focus.

Despite weak revenue of EUR 200 million in the first quarter of 2025, divergent dynamics are evident. While "Shared R&D" temporarily suffered from market conditions, "Just - Evotec Biologics" grew by 11%. Adjusted EBITDA of EUR 3.1 million exceeded expectations. For the full year 2025, revenue is forecast to increase to EUR 840-880 million and EBITDA to EUR 30-50 million. In the medium to long term, Evotec plans annual revenue growth of 8-12% and an EBITDA margin of over 20% by 2028. The share price has reached the support level of EUR 6.90 and currently stands at EUR 6.974.

The explosive oncology market offers massive growth, but only strategically focused players will benefit long-term. Bayer is driving its pharmaceuticals business forward with precision oncology, but must overcome weaknesses in Crop Science and the glyphosate lawsuits. Vidac Pharma is impressing with its patented drug candidate Almavid™, which promises an innovative treatment option for solid tumors by interrupting the Warburg effect. As a scientific innovator, Evotec is strengthening its key role through strategic alliances, such as with Bristol Myers Squibb and AI-supported platforms for novel cancer therapies. This focus on high-potential technologies will define the future winners in the USD 866 billion race.