Oncology boom: How Bayer, Vidac Pharma, and BioNTech could outperform with their full pipelines

Bayer – Stability despite headwinds

Despite a slight decline in quarterly revenue to EUR 10.7 billion, Bayer posted solid core operating figures. Adjusted EBITDA of EUR 2.1 billion exceeded expectations, driven by a strong performance in the pharmaceuticals segment and cost efficiency in the agricultural business. Particularly impressive is the increase in adjusted earnings per share of just under 31%. This robust performance underscores the Company's operational resilience, even though special expenses for legal disputes are weighing on the overall result.

A key strategic focus remains on expanding the oncology pipeline. Bayer recently secured access to a promising KRAS G12D inhibitor through an exclusive license agreement with US biotech company Kumquat Biosciences worth up to USD 1.3 billion. This inhibitor targets common mutations in cancers such as pancreatic and colorectal cancer. In addition, Bayer's own candidate sevabertinib received Priority Review status from the FDA for the treatment of HER2-mutated lung cancer. These investments highlight the focus on targeted therapies in an area with high unmet need.

Ongoing litigation, particularly relating to glyphosate and PCB, remains a significant burden and has led to provisions in the billions. Nevertheless, the Crop Science division recorded currency-adjusted sales growth of 2.2%, driven by the corn seed business. Based on this resilient performance and strong pharmaceuticals performance, the Company has slightly revised its revenue and EBITDA forecasts for the full year 2025 upward. For investors, management's ability to decouple operational strengths from legal risks remains crucial. The share is currently trading at EUR 27.99.

Vidac Pharma - Science confirms innovative cancer therapy approach

The study by Lin et al., published in Cancer Biology & Medicine, supports Vidac Pharma's innovative treatment approach. When mitochondrial function is reactivated in tumor cells, these cells respond much better to chemotherapy. This finding is consistent with Vidac's core mechanism of action, which aims to break the Warburg effect - the phenomenon of hyperactive glycolysis in cancer cells. By blocking the binding of a specific key enzyme to the mitochondria, Vidac's approach forces the cells to revert to normal metabolic function, making them more vulnerable to treatment.

Two promising drug candidates are currently at the center of development. VDA-1102, which is being developed for the treatment of actinic keratosis and cutaneous T-cell lymphoma, has already achieved remarkable response rates in Phase 2 studies. In the majority of study participants, skin lesions were significantly reduced or even completely regressed. The second candidate, VDA-1275, is still undergoing preclinical testing, but has already shown strong synergistic effects when administered in combination with conventional chemotherapeutic agents at this stage.

Although the pipeline appears extremely promising and is scientifically sound, the Company's shares are currently receiving little attention on the stock markets. The research firm Sphene Capital sees considerable potential here and recently confirmed a price target of EUR 4.30. In their conservative valuation, which does not fully take into account licensing revenues or the second active ingredient, VDA-1275, the analysts see a significant undervaluation. The Company is currently seeking a listing on a major stock exchange in Germany, which could bring additional liquidity and attention. The share is currently trading at EUR 0.52.

BioNTech - Oncology pipeline shows first clinical successes

The latest positive data from two oncology studies by BioNTech has caught the attention of investors. In early September, the Company and its partner DualityBio announced positive Phase 3 results for its HER2-targeted ADC candidate BNT323 in China. The drug showed superiority over the standard therapy Kadcyla in advanced HER2-positive breast cancer. This was followed shortly thereafter by encouraging interim data for the bispecific antibody Pumitamig in combination with chemotherapy in small cell lung cancer.

While the China data for BNT323 represent an important milestone and pave the way for approval there, global commercial success remains uncertain. The key hurdle is the ongoing global Phase 3 DYNASTY-Breast02 study, which directly compares the drug with the current standard therapy, Enhertu. Results are not expected until 2026. At the same time, the strong Phase 2 data for Pumitamig highlight the potential of this highly regarded platform technology.

Despite the loss of COVID-19 revenue, BioNTech has a robust financial buffer. With cash and cash equivalents of over EUR 16 billion and an expected cash runway of several years, the Company has enough leeway to advance its promising but capital-intensive pipeline. The latest positive signals de-risk the pipeline, but a fundamental revaluation of the stock will have to wait for decisive global data. The stock jumped after the positive Phase 3 study data, but was unable to defend its gains and fell back to its current level of EUR 89.85.

The oncology boom presents historic opportunities, but it requires selecting the right innovators. Despite legal legacy issues, Bayer combines operational stability with a strategically expanded pipeline through licensing. Vidac Pharma impresses with its scientifically validated, disruptive therapeutic approach, which has the potential for a significant revaluation of the stock. BioNTech has taken the decisive step of translating its financial strength into clinical and commercial success with initial positive Phase 3 data for an ADC.