Don’t Miss Out! Cancer Research and Comeback Potential: Vidac Pharma, Bayer and Evotec in Focus!

Vidac Pharma: Green Light for Its European Offensive

Vidac is pursuing a novel approach in cancer medicine. The company's active substances are intended to influence the disrupted energy metabolism of cancer cells, thereby inhibiting their growth and ultimately promoting cell death. The focus is on the interaction between the proteins HK2 and VDAC. The most promising clinical candidate is VDA-1102, an ointment for treating actinic keratosis, a sun-induced skin condition with a potential cancer risk.

In the short term, attention is focused on the results of VDA-1102's Phase 2b trial in actinic keratosis. Following the completion of patient follow-up in September 2026, Vidac announced a final data analysis. Positive results could pave the way for further clinical development and attract the interest of potential partners. Progress in other indications and new trial data could provide additional impetus. In its September 14 announcement, Vidac presented the final data review and statistical analysis. Results, including tissue analyses, were expected in the following weeks.

Other development programmes concern cutaneous T-cell lymphoma and solid tumours. With VDA-1275, Vidac is also working on a preclinical drug candidate intended to alter cancer metabolism and potentially enhance the effect of established chemotherapies.

The latest annual general meeting resolutions expand Vidac's financing flexibility and allow the issuance of further shares. Shareholders also approved the planned collaboration with the French company Eutopos Pharma, which is intended to raise capital, coordinate clinical development and advance strategic partnerships from Strasbourg. In addition, management is financing growth by selling shares and making the proceeds available to the company as fresh capital.

Bayer: Mixed Picture

The life sciences group operates in two areas, each accounting for almost half of revenue, which analysts estimate at EUR 45.9 billion in the current financial year. Crop Science, which offers solutions for agriculture and crop protection, remains the problem child because of the glyphosate litigation since the Monsanto acquisition in 2018. Plaintiffs allege that the group's weedkiller Roundup causes cancer. After a favourable US Supreme Court ruling for Bayer in the summer, the German company continues to seek a class action settlement of up to USD 7.25 billion, though final court approval following the September 14 hearing is still pending. A firm completion date is not yet foreseeable.

The Pharmaceuticals division develops prescription medicines, for example for cancer and cardiovascular diseases. Consumer Health, by contrast, offers over-the-counter healthcare products. These two segments account for the other half of total revenue. In the second quarter, Bayer generated group revenue of EUR 10.9 billion and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 2.1 billion. The bottom line was a profit of EUR 219 million. Net debt stood at EUR 33.6 billion at the reporting date. According to the company, this is to be reduced to EUR 29 to 30 billion by the end of the year.

Bayer's pharmaceuticals business reflects the typical life cycle of medicines. While the prostate cancer drug Nubeqa grew 64% in the second quarter on a currency- and portfolio-adjusted basis, the blockbusters Xarelto (anticoagulant) and Eylea (eye medicine) are coming under pressure from expiring patent protection and competing products. New medicines are intended to offset the revenue losses. Alongside Nubeqa, the group sees considerable potential in Kerendia for treating certain kidney and cardiovascular diseases.

To strengthen its balance sheet, Bayer agreed in July to a hybrid capital injection of EUR 3 billion for its long-acting contraceptives business, which includes hormonal intrauterine devices, with financial investor Apollo. The transaction was completed in mid-September, with KKR participating as an additional investor. This allows Bayer to strengthen its balance sheet with equity-like funds without raising capital.

Successes have also been reported elsewhere recently. In September, the US Food and Drug Administration (FDA) granted accelerated approval for sevabertinib as a first-line treatment for adults with advanced or metastatic non-small cell lung cancer (NSCLC) and certain HER2 mutations. Bayer is thereby expanding the cancer medicine's scope of use and the potential patient and revenue base. The German company will publish its third-quarter figures on November 3. On average, analysts see just over 30% upside potential for the stock.

Evotec: In Principle, but…

In principle, there are several positive factors that could boost the biotech sector, but they do not apply to every company. Amid the AI boom, investors are increasingly looking at companies in the sector. Market participants are betting that artificial intelligence will accelerate the development of new medicines and, in turn, boost demand for laboratory equipment, research technology and testing systems. Recently, individual M&A transactions have also provided grounds for optimism.

With the annual forecast lowered in the summer to revenue of EUR 570 to 610 million and a higher adjusted EBITDA loss of between EUR 70 and 105 million, investors once again had to absorb a blow. The company cited deferred contributions from existing partnerships and lower expected revenue from new collaborations as the reasons. Management expects improved new business to have a greater impact on revenue from the fourth quarter onwards. A few weeks ago, optimistic statements from CFO Claire Hinshelwood on business indicators, the progress of the savings programme "Horizon" and the pipeline enthused investors. Perhaps the Q3 figures on November 5 and upcoming conferences will soon provide better visibility.

As of today, the shares were trading at around EUR 2.80, giving the company a market capitalisation of just EUR 500 million. In the first half of 2026, revenue fell 19% to EUR 300 million. Adjusted EBITDA was minus EUR 42.7 million, and net loss was EUR 168.6 million. Operating cash outflow reached EUR 111 million. Analysts set an average price target of EUR 4.60.

Conclusion

Vidac Pharma is at an important juncture. New positive trial data could soon boost the shares. Bayer and Evotec will each publish their next quarterly figures in early November. Bayer needs more clarity on the legal dispute, while Evotec must increase orders and reduce costs.