Cancer in Focus: Merck & Co., Vidac Pharma and AstraZeneca

Merck & Co.: New Drugs Are Driving Revenue

Merck & Co. recently released its second-quarter results. The US company remains strategically on track. The focus is on diversifying the product portfolio ahead of the expiration of Keytruda's main patents in 2028. Keytruda is based on the active ingredient pembrolizumab and is a so-called immune checkpoint inhibitor. It is approved for a wide range of different types of cancer, such as melanoma, lung cancer, head and neck tumors, and stomach, esophageal, and colorectal cancers. Keytruda is currently the world's top-selling drug and the driving force behind the Merck Group. In the second quarter alone, global revenue reached USD 8.37 billion. In 2025, total revenue amounted to an impressive USD 29.5 billion, representing slightly less than half of the group's total revenue. Merck has now introduced a subcutaneous injection formulation, which already generated USD 463 million in revenue in Q2.

To further reduce this dependence, the US-based company continues to pursue diversification through acquisitions. Most recently, it acquired Terns Pharmaceuticals. By the mid-2030s, Merck aims to achieve revenue potential of over USD 70 billion from new product launches.

Throughout the second quarter of 2026, however, Keytruda remained the key driver. In total, the company generated USD 16.61 billion in revenue, up 5.1% from the same quarter a year earlier. The small animal health division posted a stronger 8% increase, but this segment accounts for only USD 1.85 billion in consolidated revenue. The company posted a loss of USD 0.54 per share, compared with earnings of USD 1.76 per share in Q2 2025. This was due to the one-time charge associated with the acquisition of Terns Pharmaceuticals. Excluding this effect, Merck would have significantly exceeded analysts' expectations. Management has proposed a dividend of USD 0.85 per share for the second quarter. At the same time, a share buyback program totaling approximately USD 3 billion is underway this year.

Merck & Co. shares have been rising steadily since the summer of 2025. On a 12-month basis, the gain stands at a strong 65%. More than three-quarters of Wall Street analysts recommend buying the stock. However, the consensus price target is only a few percent above the current level.

Vidac Pharma: Still Under the Radar — but for How Long?

Pressure is mounting on the research community to develop new medical treatment strategies from the ground up, particularly in therapeutic areas characterized by numerous and, above all, severe side effects. Traditional cancer treatments such as chemotherapy or radiation therapy often damage healthy tissue as well—with all the consequences that entails for the patient. New oncological approaches therefore focus on maximum precision. Rather than conventional methods, specialized cell-biology mechanisms aim to influence tumour metabolism.

Vidac Pharma is also active in this field. The company focuses on the interaction between the enzyme hexokinase-2 (HK2) and the mitochondria, the cell's powerhouse. When HK2 binds to the mitochondrial membrane pores, the cancer cell evades natural immune surveillance. The new approach physically disrupts this connection without inactivating the enzyme itself. As a result, function in healthy tissue remains intact. The affected cell then reverts to its original program and initiates programmed cell death.

This methodology is now being tested in a practical setting as part of a Phase 2b clinical trial conducted in collaboration with Centroderm GmbH in Wuppertal. Here, the treatment was administered to patients for the first time. The study focuses on pronounced lesions of actinic keratosis—a precursor to non-melanoma skin cancer caused by intense UV radiation. The data collected on efficacy and tolerability will serve as the basis for the subsequent, decisive Phase 3 regulatory trial.

The need for better-tolerated forms of therapy coincides with a sharp rise in the number of cases. In particular, unprotected exposure to sunlight in the 1970s and 1980s, as well as the popularity of tanning beds, are reflected in today's case numbers. The Robert Koch Institute recorded over 120,000 inpatient treatments for skin cancer in 2024—a significant increase compared to previous decades. For the current year, approximately 355,000 new diagnoses, including early-stage cases, are expected. The mortality rate has also shown a sustained upward trend since 2005, affecting older people in particular.

Vidac Pharma is thus in a decisive phase for its approach from an operational standpoint. If safety and tolerability are confirmed, planning for the Phase 3 trial can begin. The stock has nearly halved from its January high. So far, Vidac Pharma has remained under the radar of many investors, potentially creating an entry opportunity for highly risk-tolerant investors.

AstraZeneca: A Sleeping Giant?

AstraZeneca was formed in April 1999 through the merger of the Swedish company Astra AB and the British Zeneca Group, a spin-off of the pharmaceutical division of Imperial Chemical Industries. However, its history goes back even further: not just 1 but more than 40 doctors and pharmacists joined forces to found the Swedish arm as early as 1913 in Södertälje. Today, AstraZeneca is one of the world's largest pharmaceutical companies. In terms of annual revenue, the company ranks sixth globally. It employs approximately 97,000 people worldwide. The annual research and development budget ranges from USD 11 to 12 billion.

However, the share has been a source of little joy for shareholders for years. Over a three-year period, the gain amounts to a meagre 4%; investors who bought a year ago have earned nothing at all. The figures for the second quarter that just ended were, however, solid. Revenue increased by 6.4% to USD 15.38 billion. Excluding the drugs Farxiga and Brilinta, which were affected by patent expirations, the adjusted gain was as high as +11%. Earnings per share, however, grew disproportionately by nearly 21% to USD 2.63.

Current revenue drivers come primarily from the oncology division, where key drugs posted double-digit percentage growth. Even though the stock is currently performing modestly, AstraZeneca could become one of the stars of the coming years. Its pipeline currently includes 20 pivotal Phase 3 trials over the next 18 months. Will this wake the stock from its slumber?

Merck & Co. is on a growth trajectory in the oncology sector and delivered strong results in Q2. However, analysts see little upside potential for the stock. Vidac Pharma is pursuing a completely new approach to fighting cancer and is still flying under the radar of many investors. AstraZeneca looks lacklustre at the moment but has one of the largest pipelines of new products.