Biotech stocks with a comeback! BioNTech, Evotec, Vidac Pharma

BioNTech: CEO gives hope to cancer patients

While revenues from the COVID-19 vaccine are falling, BioNTech CEO Ugur Sahin is giving hope to cancer patients. He believes that in just a few years, the number of cancer-related deaths can be significantly reduced. The key to this is the Company's mRNA technology. On this basis, the Mainz-based biotech company has built up an extensive research portfolio of medications against various types of cancer. In a recent interview with "Handelsblatt", he said: "Our goal is to see fewer and fewer patients dying from cancer. If the technology works, it could, in principle, be applicable to any cancer patient at significant risk of relapse." BioNTech, therefore, sees no reason why the mortality rate for certain types of cancer cannot be reduced to less than 5% with innovative follow-up therapies.

BioNTech is still expecting numerous study results this year. A few months ago, the Company announced that it would launch its first cancer drug on the market in 2026. Research financing has been secured by billions in revenue from the sale of the COVID-19 vaccine in recent years. Even though revenues have shrunk significantly in the meantime, and BioNTech had to report a loss in the first quarter of 2024, the cash register is still full to bursting. This has allowed BioNTech to repeatedly buy interesting companies and technologies in recent years.

Vidac Pharma: When will the turnaround come?

Vidac Pharma has not yet broken out of its sideways movement, but this is likely only a matter of time. The London-based biotech company is making good progress in cancer research and has been traded as a takeover candidate, especially since Genmab's billion-dollar acquisition of ProfoundBio. Vidac Pharma's innovative approach has the potential to revolutionize cancer treatment. The Company is researching ways to halt the proliferation of cancer cells by reversing their abnormal metabolism.

Vidac has made the most progress with its drug candidate VDA-1102, which is designed to combat mycosis fungoides - a cancer of the white blood cells known as lymphocytes. VDA-1102 has received approval for the second phase of the Phase 2a clinical trial. This phase of the trial is expected to last three to four months, and final results should, therefore, be published this year. Positive interim results were already reported in early 2024 based on 50% of subjects.

The following figures show why biotech companies in the field of cancer research, in particular, are the focus of investors: According to estimates by the International Agency for Research on Cancer, around 20 million people worldwide are diagnosed with cancer every year - and the trend is still rising. In 2022, 9.7 million people died of cancer. Around 12 million are expected to die in 2030 and 18.5 million in 2050. Vaccines and effective drugs are, therefore, urgently needed.

Evotec: Partnership extension fizzles out

And what is the biotech problem child Evotec doing? The share has yet to be able to benefit from the sector's comeback. The share is trading at just over EUR 9, close to its multi-year low. There is currently no sign of a rebound or a jump above EUR 10.

Yesterday, Evotec announced the extension of its partnership with the CHDI Foundation. For almost 20 years, Evotec has been working with the non-profit biomedical research organization to develop therapies that will significantly improve the lives of people affected by Huntington's disease. The partnership leverages Evotec's integrated neurology platform and broad expertise in CNS drug discovery and development and is one of the Company's largest strategic drug discovery alliances. Evotec CEO Dr Craig Johnstone: "We are delighted that CHDI recognizes the value of our long and highly collaborative relationship. We are particularly proud to be able to contribute to the fight against Huntington's disease together with our colleagues at CHDI. This underscores our shared commitment to finding new therapies for people affected by this devastating disease."

The announcement did not impact Evotec's share price yesterday. Deutsche Bank provides the most recent analyst commentary. Last week, the experts confirmed their "Buy" recommendation and a price target of EUR 12.

There is more movement in the biotech sector again. BioNTech remains a core investment. However, a sustained upward trend will require patience and positive study results. With a market capitalization of around EUR 10 million, Vidac Pharma is still in its infancy, but the share price potential could be correspondingly high if the upcoming study results are positive again. Evotec has lost a lot of confidence this year. Regaining this trust will take time.