Cancer Research as a Growth Driver: How Bayer, Vidac Pharma, and Pfizer can enrich your portfolio

Bayer – Pharmaceutical strength meets legal uncertainty

Those looking at the Leverkusen-based company these days see Bayer caught between operational recovery and ongoing legal uncertainty. The share price has recovered significantly from its lows, but investors remain cautious. The focus of attention is on the US Supreme Court's decision on the glyphosate issue, which is expected by June. This ruling could have a landmark effect on the future of the company. A positive ruling could not only put the billions in provisions for litigation into perspective but also pave the way for sustainable debt relief.

Bayer's core business is now beating more strongly again. The pharmaceuticals division has a significantly rejuvenated portfolio. Oncology is performing particularly well. The prostate cancer drug Nubeqa is becoming a sales driver and recently received further approval in China. Kerendia is also showing strong growth rates in kidney disease. In addition, there is promising data on the stroke drug Asundexian, which has the potential to redefine the standard of care. With the cell therapy subsidiary BlueRock and advances in radiology, it is also becoming apparent that the pipeline is broader than had long been assumed.

While drug development is picking up speed, the agricultural division continues to weigh on the balance sheet. Crop Science is suffering from a weak market environment and regulatory setbacks. The comprehensive cost-cutting program with job cuts is expected to save another EUR 2 billion by the end of the year. This is a necessary step in view of the high level of debt and the billions in provisions for the glyphosate lawsuits. Operational consolidation is progressing, but the financial leeway remains tight. The group is only forecasting modest free cash flow for the current year. The share is currently trading at EUR 45.795.

Vidac Pharma – Broadening its pipeline

A biopharmaceutical company that has long operated in the shadow of the major industry players is currently moving into the spotlight with a new strategy. Vidac Pharma is pursuing a mechanism that does not target a single type of cancer, but rather a fundamental metabolic change in pathologically altered cells – known as the Warburg effect. The idea behind this is to influence the enzyme hexokinase 2 (HK2) in such a way that degenerated cells can no longer put their metabolism into permanent stress mode. What has been tested primarily in oncology to date is now gaining a new foundation. In early January, the company received a key US patent from the USPTO, securing exclusive marketing rights for important molecular candidates for up to two decades. This gives the company a clear competitive advantage in the important American market.

But the more interesting step followed in February. Vidac announced the launch of an in vivo preclinical program for the treatment of psoriasis. At first glance, this may seem like a change of topic, but the logic behind it is understandable. Psoriasis also involves overexpression of HK2 in the affected skin cells, similar to tumor cells. The result is excessive cell proliferation and an inflammatory environment. This is precisely where the mechanism of action comes in, promising to slow down cell proliferation and calm inflammation. The tests are being conducted by PharmaLegacy, a specialized contract research organization, which keeps the risk for the company manageable. This is the first evidence that the technology platform could have an impact beyond cancer research.

Parallel to the operational progress, there was movement at the ownership level in January that could make some investors wary. CEO Dr. Max Herzberg personally sold shares worth a mid-five-figure euro amount. Such insider sales often cause unease, but the context puts the transaction into perspective. Back in December, management announced its intention to increase the free float in order to improve the liquidity of the stock. According to the company, the net proceeds will be reinvested in the company to accelerate its clinical programs. The stock is currently trading at EUR 0.692.

Pfizer – Between patent expiries and a billion-dollar pipeline

Pharmaceutical giant Pfizer is currently undergoing a phase of consolidation. The days of pandemic-driven record sales are over, and the company is working hard to reinvent itself as a broad-based innovation house. The current figures paint a mixed picture. While revenues from the COVID products Comirnaty and Paxlovid are slumping as expected, the core business remains stable. Adjusted for these two special effects, revenue actually increased in 2025 as a whole. The heart medication Eliquis and oncology products were in particularly high demand. However, the outlook for 2026 is cautious. The group expects revenue to remain at the previous year's level or slightly below, with a slight decline in earnings per share.

While the market eagerly awaits the billion-dollar foray into obesity therapy, Pfizer is simultaneously working hard to expand its oncology portfolio. The expensive acquisition of specialist Seagen a few years ago is slowly paying off here. Integrated cancer drugs, including Padcev, are becoming important revenue drivers and are growing at double-digit rates. The company is also pushing ahead with the development of new drugs that are considered potential successors to established immunotherapies. By the end of the decade, the acquired cancer drugs alone are expected to generate revenue of USD 10 billion.

From an investor's perspective, the picture is currently mixed. On the one hand, the stock is moderately valued with a single-digit price-to-earnings ratio and attracts investors with a dividend yield of over 6%. On the other hand, the risks of the coming years are weighing on the share price. In addition to imminent patent expiries, success in obesity research remains the big unknown. Although initial positive data for the weekly or monthly injection regimen are available, the decisive Phase III studies will start in 2026, and market entry is not expected until 2028 at the earliest. Until then, the established business will have to fill the gap. The share price is currently trading at USD 27.58.

Oncology remains the most exciting growth driver in the pharmaceutical industry, but 2026 will show that only strategically well-positioned companies in investors' portfolios will shine in the long term. Bayer is demonstrating operational strength with its strong pipeline, but remains a high-risk play due to the legal nightmare surrounding glyphosate. Vidac Pharma, on the other hand, is cleverly making the transition from niche oncology to a broadly effective platform provider, backed by a new patent. And Pfizer? The industry giant is balancing between massive patent expiries and billion-dollar hopefuls.