Takeover speculation and momentum: BioNTech, Rheinmetall, Vidac Pharma

Vidac Pharma: Takeover candidate with revolutionary cancer treatment

Vidac Pharma's shares are among the high flyers of the second half of the year. From the end of June to mid-October, the biotech stock exploded from EUR 0.19 to EUR 1. It is currently trading at EUR 0.60 and offers an attractive buying level. Vidac is working on a revolutionary approach to cancer therapy. A second Phase 2b clinical trial is currently being prepared for the candidate VDA-1102 for advanced actinic keratosis (AK), an early form of skin cancer. EUR 600,000 has been raised for this from existing investors and management, showing a strong vote of confidence.

VDA-1102 has already proven to be safe and effective in the treatment of cutaneous T-cell lymphoma, for which Vidac has completed a Phase 2a proof-of-concept study. The results are to be published soon. With its approach, Vidac Pharma aims to establish an entirely new class of cancer drugs. The goal is to stop the abnormal metabolism of cancer cells and, thus, their proliferation. And this applies to all types of cancer cells! Based on the convincing study results, the US Patent and Trademark Office (USPTO) has already granted a patent for the mode of action of the oncology and onco-dermatology therapy candidates.

Analysts at Sphene Capital are also convinced of the new cancer treatment's potential. In the base case scenario, they recommend buying Vidac shares with a target price of EUR 4.90. Incidentally, at the current price of EUR 0.60, the Company is only worth just over EUR 30 million on the stock market. BioNTech's recent acquisition demonstrates that this is a bargain.

BioNTech: Acquisition could cost up to USD 950 million

BioNTech will pay at least USD 800 million for the acquisition of Biotheus. If the Chinese biotech company reaches certain milestones, a further USD 150 million will be due. As stated above, Vidac Pharma is currently valued at just over EUR 30 million. Biotheus is a clinical-stage biotechnology company dedicated to discovering and developing innovative antibodies to address the unmet medical needs of patients with cancer or inflammatory diseases. Biotheus and BioNTech are already collaborating on development efforts.

"The acquisition of Biotheus builds on our successful ongoing collaboration on BNT327/PM8002 and other bispecific antibody candidates," said Prof. Dr. Ugur Sahin, CEO and co-founder of BioNTech. "We believe BNT327/PM8002 has the potential to become a new standard of care in multiple oncology indications, beyond traditional checkpoint inhibitors. We are committed to advancing the research and development of BNT327/PM8002 in combination with our mRNA vaccine, targeted therapy, and immunomodulator investigational products to improve patient outcomes for people with solid tumors."

Goldman Sachs analysts view the acquisition as positive and have reiterated their "Buy" recommendation. The target price is USD 137. At the end of last week, BioNTech and Moderna shares were weighed down by the announcement that Donald Trump is considering Robert F. Kennedy, an anti-vaccinationist, to be the next US Secretary of Health and Human Services.

Rheinmetall: Breakout successful?

Although no takeover fantasies surround Rheinmetall, the stock is gaining momentum again. Last week, the shares of Germany's largest defense company rose from EUR 468 to around EUR 575. This puts the stock at a yearly high, signaling an end to the sideways movement that has persisted since April. Overall, defense stocks are considered winners under Trump. The incoming US president is expected to put more pressure on Europe to meet the 2% defense spending target. Additionally, Europe will likely need to increase its involvement in Ukraine.

The risk for Rheinmetall's share is that Trump actually manages to end the war between Ukraine and Russia. However, this is more likely to cause a short-term slide in the share price. Europe's long-term rearmament is not likely to change.

The analysts at Hauck Aufhäuser, among others, are optimistic about the Rheinmetall share. They expect the dynamic growth to continue. They, therefore, recommend buying the share of the DAX-listed group with a price target of EUR 680.

Rheinmetall remains a core investment in the defense sector. However, an end to the war in Ukraine – or rumors of one – could cause the share price to plummet. Vidac Pharma, like BioNTech's acquisition target Biotheus, is in the clinical phase. Yet Vidac is valued at only a fraction of Biotheus and is pursuing a revolutionary approach that could be suitable for all forms of cancer. BioNTech is somewhat battered in terms of the charts. The EUR 90 mark is a critical support level that should not be breached.