The fight against cancer as a billion-dollar opportunity: BioNTech, Merck, and Vidac Pharma

BioNTech and Merck are committed to the fight against cancer

Since the success of BioNTech, it has been clear that in biotechnology, even a single good product can take a company to new heights. Thanks to its expertise in mRNA technology, the Mainz-based company was ahead in the race to develop a coronavirus vaccine. But BioNTech's business model has even more to offer: In addition to mRNA, the Company is also focusing on antibodies, cell therapies, and combinatorial approaches. These methods are now primarily used in the fight against cancer: The Company is pursuing a pipeline of oncology candidates, including individualized cancer vaccines (personalized to the tumor antigens of individual patients), novel bispecific antibodies, cell therapies (CAR-T cells), and combination-based regimens. BioNTech operates partly independently and partly in cooperation with pharmaceutical partners such as Genentech and Roche.

Although the Company has provided insight into its research in recent weeks, it sees itself as being in a transitional phase. This initially involves investments in research and development. In 2024, the Mainz-based company invested around EUR 2.5 billion in its own research – given its liquid assets of more than EUR 15 billion, this approach seems reasonable. Merck in Darmstadt is investing roughly the same amount in the development of new active ingredients and processes. Unlike BioNTech, Merck is more broadly positioned and offers high-tech chemicals for the chip industry in addition to laboratory and pharmaceutical supplies. However, its core business remains the healthcare sector, where Merck specializes in the therapeutic areas of oncology, neurology, immunology, and fertility medicine.

Fight against cancer: Analysts see billion-dollar market continuing to grow

There are good reasons why almost all major companies in the pharmaceutical and biotech industries are focusing on cancer drugs. Analysts and market researchers agree that this area offers great growth potential. The asset management company Candriam expects annual growth in the cancer drug sector to rise from 15% to EUR 440 billion by 2028. This growth is expected to continue at a similar pace in the years that follow. "As the world's population ages and lifestyle-related diseases increase, demand for effective cancer therapies will continue to rise," the analysts say.

Vidac Pharma cuts off cancer cells' power supply – Top results with skin cancer cream

One company that could grow particularly dynamically due to its unique position is Vidac Pharma. Vidac's business model is based on a unique approach: reversing the Warburg effect. Cancer cells prefer to use glucose fermentation (Warburg effect) for energy, which leads to high glucose consumption and tumor growth. Vidac develops innovative active ingredients that detach the enzyme hexokinase-2 (HK2) from mitochondrial channels in order to normalize the degenerate metabolism of cancer cells. This blockade is intended to stop cell division and enable cell death to occur again. Vidac Pharma currently has two promising candidates – an ointment for skin cancer, which is in Phase 2 of clinical trials, and an active ingredient for solid tumors. The ointment for skin cancer in particular has shown impressive initial results: in an open-label study with patients with cutaneous T-cell lymphoma (CTCL stage I), the objective response rate was 56%. Complete remission was achieved in 22% of the subjects within eight weeks, and partial remission was observed in 34% of the study participants after eight to twelve weeks. All participants in the study remained progression-free for over four months, meaning that the cancer did not continue to grow.

Big opportunities with small stocks

While industry heavyweights such as BioNTech and Merck have well-developed business models with a variety of projects, Vidac Pharma is betting everything on its two drug candidates. For speculative investors, this could be an opportunity for above-average returns. The analysts at Sphene Capital already saw a target price of EUR 4.90 for Vidac's share price last fall. However, this is contingent on the successful approval of the cream for skin cancer. Investors must be aware of this risk. Recently, the three stocks have been moving in lockstep despite their differences: Over a six-month period, all three cancer hopefuls fell by around 15%. Recently, however, the mood has brightened. If more investors become aware of the potential of cancer drugs, prices for all industry players should rise again. The comeback could be particularly dynamic for smaller companies. Vidac Pharma is therefore an exciting candidate for the watch list.