Evotec, Vidac Pharma, BioNTech – Profiting from the fight against cancer

Evotec – Broadly positioned

Evotec's business concept is based on strategic partnerships. To this end, the Company provides its partners with scientific expertise and technological innovations. The Hamburg-based company uses a multimodal platform that integrates various technologies, including iPSC and PanOmics. iPSC facilitates disease modelling at the cellular level, while PanOmics improves the understanding of disease mechanisms. The integration of artificial intelligence accelerates development times and streamlines the overall process. This approach promises a competitive advantage, particularly in the field of modern oncology.

In recent years, Evotec has entered into strategic partnerships, such as with Dewpoint Therapeutics, to jointly tackle difficult-to-treat cancers. The co-ownership strategy shares the risks, costs, and ownership between the parties. This approach has enabled Evotec to significantly expand its co-owned pipeline in recent years in the areas of small modular assets, biological agents, and cell and gene therapy. On December 11, the first three projects to combat cardiometabolic diseases were selected together with Novo Nordisk.

Although there were positive developments in terms of partnerships last year, it was still a challenging year for shareholders. First, there was an unexpected change in CEO, and then the figures also left something to be desired. The new CEO, Dr Christian Wojczewski, wants to review the Company's strategy and has already initiated cost reductions. The Company plans to announce its future course of action by April at the latest, based on the results it has developed. Before that, on March 27, Evotec will present its Q4 figures. With a current share price of EUR 7.93, the Company could continue to be attractive as a takeover target.

Vidac Pharma – Strong Phase 2a study results

Vidac Pharma has established itself as a promising player in cancer research. Led by CEO Prof. Dr. Max Herzberg, a highly respected scientist and entrepreneur, the Company has set itself the goal of developing oncological and oncodermatological therapies. The Company is focusing on a new type of cancer treatment. The drugs are designed to reverse the abnormal metabolism of cancer cells, thereby stopping the spread of cancer cells. The Company currently has two promising product candidates. One is VDA-1275, which combats solid tumours and has performed well in preclinical studies. The other is VDA-1102, an ointment for an early form of skin cancer that was already in a Phase 2a clinical trial.

According to the announcement on January 2, this was successfully used in patients with a specific form of cutaneous T-cell lymphoma, Mycosis Fungoides. The study results show excellent values. The objective response rate was 56%, with 22% showing a complete response to the treatment. In 34% of the subjects, a partial response was observed in the first 12 weeks, with continued improvement noted by week 16. Disease progression was prevented in all participants. Compared to other treatments, VDA-1102 demonstrated a significantly faster effect. Based on these results, the pivotal Phase 2/3 study can now commence.

In mid-December, Vidac Pharma received confirmation from the US Patent and Trademark Office that patent protection for the oncology drug candidates had been significantly extended. This now also applies to indications such as prostate, pancreatic, lung, cervical and colorectal cancer, as well as to dosage forms. The CEO expressed his delight: "The evidence that Vidac's two drug candidates have revolutionary potential for a variety of tumours is growing, and the extension of our US patent is confirmation that we are on the right track." The share price has increased by more than 250% since mid-August and has recently consolidated. Currently, a share costs EUR 0.70.

BioNTech – Opportunity or risk?

2025 is an important year for BioNTech. After the success of the COVID-19 vaccine, the Company is increasingly focusing on oncology. With mRNA-based therapies and bispecific antibodies, the Company aims to put cancer in its place. These approaches cover a large part of the pipeline. Meanwhile, a number of studies are underway, such as the Phase 3 study on small cell lung cancer, but individualised mRNA vaccines are also showing good progress. Initial research results from bowel and bladder cancer studies could be available as early as 2025 or 2026, raising new hopes for approval.

All these parallel research projects cost a lot of money and cause high losses. After high profits during the pandemic, a net loss of more than EUR 700 million is expected for 2025. Declining revenues from COVID-19 vaccines are weighing on the figures, while research costs continue to rise. Nevertheless, BioNTech has enough funds to push projects forward. Analysts find the stock undervalued and see price targets of up to USD 137. A new high is likely if the Company makes a breakthrough in oncology.

Nevertheless, the mRNA industry is highly competitive. Moderna and CureVac are also working on new therapies. However, BioNTech could offer advantages with a combination of mRNA technology and antibody therapies. The oncology pipeline is broadly diversified, and the first cancer drug is expected to come onto the market in 2026. Nevertheless, investors should take a look at what is happening in the US. With Robert F. Kennedy Jr. as the new US Secretary of Health, who has been highly critical of the COVID-19 vaccination campaign, potential lawsuits for damages against Pfizer could also eventually impact BioNTech. The share is currently trading at EUR 108.00.

All three candidates have innovative cancer therapies in development. Although Evotec can score with innovative technologies and strategic partnerships, management is facing a realignment after weak business figures. Vidac Pharma has received positive feedback from the US Patent Office and recently presented strong Phase 2a study results. BioNTech has focused its efforts on mRNA-based cancer research. However, as expected, the Company's most recent figures were significantly weaker. The first oncology drug is expected to be on the market in 2026. In summary, cancer research is and remains a lucrative market.