Cancer will become curable - and these stocks could then be priceless: Evotec, Vidac Pharma, and Bayer

Evotec – Quarterly figures and milestone payment

Evotec has been in a transformation phase since the beginning of the year. The figures for the third quarter were not particularly convincing. Revenue fell by 7.1% to EUR 535.1 million. The reason for the decline is mainly related to weaker demand for early-stage research services. The Company is therefore trying to focus on more lucrative areas. The biologics business is doing really well. Here, the Company is recording accelerated growth outside of the Sandoz collaboration. The annual forecast remains stable at EUR 760 to 800 million in total revenue, which shows that management remains optimistic despite headwinds.

At the beginning of November, Evotec secured a financial cushion with the sale of its Toulouse facility to Sandoz for around USD 350 million. In addition, Evotec is entitled to further payments of more than USD 300 million in the coming years. Evotec retains revenue shares from up to ten biosimilars with a market volume of over USD 90 billion. At the same time, the Bristol Myers Squibb partnership is running smoothly. In 2025 alone, at least USD 95 million in milestone payments were received. This demonstrates that Evotec's platform technologies are valued in the market.

Cancer research is particularly exciting. A new oncology drug from partner Dewpoint Therapeutics has achieved IND status with the FDA. Evotec is also working with Bristol Myers Squibb to develop innovative "molecular glue degraders" for cancer therapies, an area with enormous potential. The first Cereblon E3 ligase modulator is expected to enter clinical trials in 2026. Such breakthroughs in oncology are worth their weight in gold, as the market is growing significantly every year. Evotec is cleverly positioning itself as a technology enabler for the next generation of cancer drugs. The stock was sold off after the quarterly figures and is currently available for EUR 5.52.

Vidac Pharma – Revolutionary approach against cancer

Vidac Pharma is pursuing a fascinating approach in cancer therapy. The Company aims to reverse the notorious Warburg effect in tumor cells. Simply put, it blocks the HK2 enzyme, which normalizes the metabolism of cancer cells and reactivates the immune system. Behind the sober designation VDA-1102 lies a new source of hope. The drug is intended for the treatment of advanced actinic keratosis and cutaneous T-cell lymphoma, certain precursors of skin cancer and a malignant skin disease. The Company has now achieved an important milestone and obtained approval for a clinical trial in Germany. This is a significant success that can be built upon. The scientific approach behind it is clever. Current research shows that functional mitochondria, the powerhouses of our cells, make tumor cells more susceptible to chemotherapy. This is precisely where VDA-1102 comes in. Put simply, the active ingredient could sensitize cancer cells to treatment, essentially teaching them to fear the therapy.

The patent landscape looks promising. The US Patent Office has granted Vidac broad protection for its HK2 technology. The patent covers various classes of active ingredients and treatment methods for all HK2-expressing cancers. This comprehensive protection gives the Company a solid starting position in the growing oncology market. At the same time, Vidac has submitted a study application to the European Medicines Agency to advance its Phase 2 research. The collaboration with experienced partners such as Wuppertal-based CentroDerm demonstrates the Company's professional approach.

Sphene Equity Research confirms its positive assessment with a price target of EUR 4.30 and highlights Vidac's differentiated approach in oncology. It is interesting to note that renowned companies such as Roche and Novartis are also working on cell metabolism therapies, so Vidac is operating in a promising segment. The analysts' valuation models consider both actinic keratosis and lymphoma indications separately. With the preclinical candidate VDA-1275 in the pipeline, there could be additional upside potential. The focus on mitochondrial functions strikes a chord with current trends in cancer research. The share is currently trading at EUR 0.476, giving it significant upside potential to reach its price target.

Bayer – Between cancer research and legal risks

Bayer had a really good third quarter. The Group grew strongly with revenue of EUR 9.66 billion and generated an operating profit that was a whopping 20.8% higher than in the previous year. The Company really gained momentum in its agricultural business, which proved to be surprisingly robust. The efficiency programs implemented here finally had a noticeable effect and paid off directly on the cost side. The pharmaceuticals division also performed well, with the cancer drug Nubeqa for prostate cancer treatment, which grew by 56.2%, and the kidney drug Kerendia, performing particularly well. However, the massive provisions for US litigation continue to weigh on sentiment and the Company's results.

Bayer is showing promising developments in oncology. In addition to strong growth in the prostate cancer drug Nubeqa, the Company is preparing for the US market launch of Lynkuet, a hormone-free drug for menopausal symptoms. These pipeline advances are important, as established products such as the anticoagulant Xarelto are coming under pressure from patent expiries and slumped by 31.4%. The Company is investing heavily in cell and gene therapies and innovative research approaches to strengthen its position in the lucrative oncology market.

The biggest challenge remains the legal risk in the US surrounding glyphosate and other disputes. Provisions rose again after new settlement agreements were reached and further lawsuits were filed. Nevertheless, management is confident that it will significantly reduce the legal risks by the end of 2026. For the full year, Bayer now expects special charges of between EUR 3.5 and 4.0 billion. In any case, the business is performing better than these figures suggest, and the transformation of the Company appears to be bearing fruit. The stock was bought after the figures were released and currently costs EUR 29.455.

The explosive growth in the oncology market offers immense opportunities, but also presents companies with various challenges. Evotec is cleverly positioning itself as a valuable technology enabler and is benefiting from lucrative partnerships with big pharma. Vidac Pharma impresses with its revolutionary, patented therapeutic approach, which targets the metabolism of cancer cells and has great potential. Bayer, on the other hand, continues to struggle with the overwhelming US legal risks that overshadow the Company, despite robust operating performance and strong cancer drugs such as Nubeqa. The race to cure cancer is in full swing.