New research findings – Cell metabolism relevant in cancer: Roche, Novartis, and Vidac Pharma

Vidac Pharma: Cancer drugs based on the Warburg effect

In the 1920s, German biochemist Otto Heinrich Warburg observed that tumor cells absorb large amounts of glucose and convert it into lactate, even in the presence of oxygen. Today, the Warburg effect is interpreted differently: it is no longer assumed that tumor cells function completely differently from healthy cells, but rather that there is increased glycolysis occurring alongside many mitochondria that continue to function conventionally within cancer cells. Nonetheless, glycolysis remains a viable therapeutic target. The hypothesis: by inhibiting glucose supply, it may be possible to slow down the growth of tumors. Increasingly, researchers are looking into the role of ketogenic diets, which largely avoid carbohydrates, in the context of cancer treament. The British company Vidac Pharma has even developed active ingredients that leverage the Warburg effect. The active ingredient VDA-1275 targets liver and colon cancer, among others, and has shown strong effects in mice. Among other results, it has been possible to increase the effect of chemotherapy drugs against liver cancer by a factor of 1,000 and significantly increase the survival rate of mice with colon cancer.

The active ingredient VDA-1102 achieved an overall response rate of 56% in a Phase 2 study in patients with skin cancer, with complete remission in 22% of cases. All active ingredients from Vidac Pharma are patent-protected. To assess the potential of the Canadian company, which is valued at only around EUR 26 million, it is important to bear in mind that in biotechnology, it is usually the interaction of several effects that matters: the single button to switch off cancer has not yet been found. This is another reason why oncologists rely on combination therapies and synergistic effects.

Vidac's technology is not only a good fit for Roche and Novartis

As already demonstrated in clinical trials, Vidac Pharma's technology can be combined with established forms of therapy. This makes it potentially compatible with products from nearly all major pharmaceutical companies. Roche, the global market leader in pharmaceuticals and diagnostics, focuses on oncology, immunology, and neurology. The Swiss company is leading the fight against cancer primarily with its checkpoint inhibitors, antibodies such as Herceptin and Avastin, and targeted therapies such as Phesgo for breast cancer. While the latter drug is still generating substantial revenue, other Roche oncology products are increasingly facing pressure from competition from generics.**

Vidac Pharma's technology could remedy this situation and, for example, by circumventing resistance to immuno-oncology therapies, extend the life cycles of Roche's immune checkpoint inhibitors. Although Roche has not historically focused on cell metabolism, recent research, such as studies on mitochondrial transfer, could put the topic on the agenda at Roche's headquarters. Roche's Swiss competitor Novartis is also strongly committed to oncology and is pursuing a platform approach. Current projects include CAR-T cell therapies such as Kymriah and oncological viruses. Blocking the Warburg effect could help increase response rates and prolong treatment duration. Furthermore, new treatment approaches could emerge in combination with precision medicines, which Novartis also offers.

Analysts see multiplier potential due to new study

While established companies such as Roche and Novartis are gradually replacing blockbuster drugs or at least increasing their relevance in clinical practice, Vidac Pharma, with its patented technology and clinical results already achieved, is compatible in various ways. By combining Vidac's Warburg inhibitors with existing immune or cell therapies, resistance could be targeted specifically. This approach could herald a new generation of combination cancer therapies and make Vidac attractive to pharmaceutical companies both as a partner and as a takeover target.

Just last Friday, analysts at Sphene Capital issued a "Buy" recommendation for the stock with a price target of EUR 4.30.
The study explicitly cites the latest research findings on mitochondrial transfer as an argument in favor of the stock. Even though the Warburg effect, discovered around 100 years ago, is understood differently today, there are still many possibilities for therapies. Since the metabolism of cancer cells has received little attention from many large pharmaceutical companies to date, Vidac Pharma could now move into the focus of these companies.