Pharma stocks in focus: Setback for Novo Nordisk, spot-on performance for Vidac Pharma and Bayer

Novo Nordisk: Shares slump after disappointing study results for weight loss drug CagriSema

The Danish pharmaceutical company Novo Nordisk suffers a major setback in the development of its new weight loss drug, CagriSema. The study results with obese patients showed a weight loss of 22.7%. However, expectations for the weight loss product were 25%. Investors were disappointed by the results, causing the Company's share price to temporarily drop by a double-digit percentage. The result is dramatic for Novo Nordisk because CagriSema was expected to be a successor to the successful weight-loss injection Wegovy®. By modifying the combination of active ingredients of intestinal and pancreatic hormones, the researchers had hoped to achieve even greater weight loss.

The timing of these results is extremely unfavourable, as more and more competitors are steadily entering the market. Leading the charge is the pharmaceutical company Eli Lilly, which is hot on the heels of the Danish giant. The US company is well aware of the demand in its home country.** For this reason, a production plant in the US state of Indiana is to be expanded at a cost of USD 5.3 billion. The facility aims to help Americans regain their shape with the injection, with operations set to begin in 2026.

Wegovy currently leads to an average weight loss of around 15% and may only be prescribed with a suitable behavioral therapy. Off-label use has now become a trend in the celebrity world, with online sources providing access to the drug while bypassing the otherwise mandatory behavioral therapy.

The future development of the active ingredients is all about increasing sales figures. There are still no long-term studies on the pharmaceutical effects of weight-loss injections. So far, the drug has led to rapid muscle breakdown, which is good news for American plastic surgeons. These doctors then ensure that the drastic signs of drug abuse that usually appear on the face are padded out. The price to be paid for striving for Western beauty ideals is high and not primarily health-promoting. However, the market exists, with the US and Chile leading the way with an overweight population of 67%, highlighting the tip of the iceberg in skyrocketing healthcare costs.

The decline of the Novo Nordisk share has also been felt by affiliated companies. Gerresheimer, a packaging manufacturer for diabetes and obesity drugs, saw its share price fall by 13.6%.

Vidac Pharma: Innovative cancer therapy attracts early-stage investors

Morbid obesity can lead to an increase in 13 different types of cancer. According to the WHO's International Agency for Research on Cancer, these include pancreatic cancer, thyroid cancer and breast cancer (after menopause). However, the therapies for treating different types of cancer differ fundamentally.

While surgical removal of the thyroid gland is usually the main treatment for thyroid cancer, lymphoma, for example, is treated mainly with chemotherapy and radiotherapy, affecting the patient's entire body.

Vidac Pharma is researching a novel cancer treatment for solid tumors, lymphoma, and other forms of skin cancer. The UK-based company is focusing on a novel approach that corrects a common property of all cancer cells and thus has the potential to be a fundamentally new cancer treatment.

Cancer cells convert glucose directly into lactic acid, even when sufficient oxygen is available. This common characteristic of cancer cells is known as the Warburg effect. Healthy cells would fully oxidize glucose in the presence of adequate oxygen. However, the cancer cells take on a great deal of glucose through this conversion, independently of oxygen, which they use for rapid growth and further spread. Vidac Pharma's approach disrupts this effect, thereby inhibiting the growth of cancer cells.

The Company can now be pleased that the US Patent and Trademark Office (USPTO) has https://vidacpharma.com/en/press-releases/267- u-s-grants-broader-patent-to-vidac-pharmas-oncology-drug-candidates-adding-range-of-new-indications-including-prostate-and-pancreatic-cancer USxt: expanded the patent protection for the active ingredients of its cancer drug candidates. The extension now also includes lymphomas that occur as metastases of prostate and pancreatic cancer, as well as a variety of other indications and forms of administration.

This expansion increases both the protection against competitors and the opportunity to commercialize the products in the US target market. Since Vidac Pharma is still in the clinical research phase, investors have the opportunity to benefit from early-stage investment.

Since its foundation in 2012, Vidac Pharma has built a solid financial base. Private investors have invested USD 14 million, with a further USD 5 million coming from research and innovation agencies. Following a management buyout by Dr Max Herzberg and Yochai Richter in 2019, the two are financing the Company as needed. Investors can actively support the further development of the clinical trials by participating. In addition, further applications for EU funding are pending.

Before patent expiry in 2025: Bayer launches new Eylea® version

The pharmaceutical division of Bayer AG has scored another success with the higher-dose version of its ophthalmic drug Eylea®, which is already on the market. The large QUASAR study demonstrated that the 8mg dosage is just as effective as the previous 2mg version. For affected patients, this brings significant relief, as the medication is administered via injection directly into the eyeball. The higher dosage means that significantly fewer injections of this unpleasant administration into the eye are needed. Previously, injections had to be given once a month, but now only every two months. The extended treatment interval proved helpful for around 90% of patients.

These results are particularly relevant for Bayer, as the patent protection for Eylea® is set to expire in 2025, paving the way for competing products to enter the market. Now, the Company can set itself apart from the competition with a patient-oriented marketing strategy. Moreover, Bayer already has market access and established a strong physician network in the relevant markets. Last year, Eylea® generated revenues of EUR 3.2 billion.

To get Bayer out of its current low, further approval procedures are currently underway:

• Darolutamide in the US and EU for prostate cancer
• Elinzanetant in the US and EU for vasomotor symptoms
• Aflibercept 8mg in China for age-related macular degeneration

This year, Bayer's share price fell by around 42% and is currently trading at EUR 18.94.

The study results for the weight-loss injection candidate CagriSema fell short of expectations and disappointed investors. As a result, Novo Nordisk's share price has fallen sharply on the stock market. The timing is extremely unfavourable, as competitors such as Eli Lilly are catching up and will enter the market as early as 2026 with their own production plants. The Company that promises the greatest weight loss effect in the shortest possible time can score the most. However, this is risky because, despite high demand for weight loss products, long-term studies on side effects are not available. Vidac Pharma extends its US patent protection for the treatment of various types of cancer, putting it one step ahead of its competitors. As a company in the clinical research phase, Vidac Pharma offers investors the opportunity to be there right from the start of the development of revolutionary cancer therapies. Bayer is making a precision landing with the higher-dose version of its ophthalmic drug Eylea®. The new dosage enables longer treatment intervals, which improves the quality of life of patients, as the active ingredient is injected into the eyeball using a syringe. Despite the current low share price of under EUR 20, the Leverkusen-based company is showing strength through its diversified pipeline and established market presence.