Three Paths to the Cancer Drug of the Future: BioNTech, Vidac Pharma, and Pfizer Under the Oncology Spotlight

BioNTech: Between Transformation and Financial Strength

BioNTech reported a significant decline in revenue in the second quarter. At EUR 105.6 million, the company generated only about 40% of the previous year's figure of EUR 260.8 million. The net loss rose from EUR 386.6 million to EUR 820.8 million. As expected, demand for COVID-19 vaccines continues to decline and is thus the main factor behind the weak earnings, particularly in the US. The first-half figures also reflect this. Revenue fell from EUR 443 million to EUR 223.7 million, and the cumulative net loss rose to EUR 1.35 billion.

Research and development costs remained high at EUR 551 million in the last quarter. Excluding one-time items such as impairment charges and the CureVac integration, the figure stands at EUR 477.1 million. Notably, selling expenses have risen significantly. This can be interpreted as an indication of preparations for upcoming product launches from the oncology division. The company is currently advancing the clinical development of 14 studies. The focus is on the PD-L1xVEGF bispecific antibody pumitamig and the B7-H3-targeted ADC product elfetabart drozuntecan.

For the full year, management now expects revenue of between EUR 1.6 and 1.9 billion. This represents a decrease of EUR 0.4 billion from the previous forecast. The adjusted R&D forecast is EUR 2 to 2.3 billion. Cash and cash equivalents stand at EUR 16.6 billion. A USD 1 billion share buyback program is currently underway. Nevertheless, the company has sufficient financial reserves. The future performance of the stock will depend largely on whether the oncology pipeline can deliver successes and positive trial data in the coming months.

Vidac Pharma: Strategic Relaunch in the Heart of Europe's Biotech Industry

Vidac Pharma is undergoing a major strategic shift. The company is relocating its core activities, as well as its research and development, to Strasbourg to mitigate geopolitical risks and improve access to capital. The region around Freiburg, Basel, and Strasbourg offers a dense network of pharmaceutical companies and research institutions and is an ideal environment for the planned clinical trials. Vidac Pharma is currently establishing its European subsidiary, Eutopos Pharma, which will hold new intellectual property and raise capital independently. The French company will remain privately held for the time being. This structure enables access to specialized investors who avoid public markets and provides flexibility for further development.

The recently completed recruitment of 39 patients for the Phase 2b trial of VDA-1102 in advanced actinic keratosis marks an important milestone for the company. Results are expected to be available around mid-November, following a three-month follow-up period and subsequent data analysis. On a positive note, no serious treatment-related adverse events have been reported to date, indicating a good safety profile. The European Medicines Agency has also approved a study specifically targeting highly proliferative lesions. This approval strengthens the company's position as it forges its own path in oncology with its metabolic approach, known as the Warburg effect.

Funding is to be secured through two channels. While members of the executive board are selling their own shares and channeling the proceeds back into the company, the private firm Eutopos Pharma is targeting institutional capital that is not available through public stock exchanges. Acceptance into the prestigious Quest for Health accelerator program provides access to a network of approximately 25 biotech companies and a funding ecosystem with over EUR 220 million in investment volume. From a scientific perspective, Vidac Pharma is expanding its focus beyond VDAC through its subsidiary to include the correction of misfolded proteins in cells. With seven international patent families, a clinical pipeline, and a clear roadmap for further development, the company is well-positioned for the next phase of development.

Pfizer: Operational Strength Meets Balance Sheet Burdens

Pfizer reported revenue of USD 15.03 billion in the second quarter, a 2.6% increase year-over-year. Excluding currency effects, the increase was 1%. Excluding COVID-19 products, that is, without Comirnaty and Paxlovid, operating revenue grew by 5%. Newly launched and acquired products even increased their revenue by 18%. This clearly demonstrates that the company is slowly but surely moving away from its reliance on pandemic-related products thanks to a broadly diversified portfolio. Management raised the revenue forecast for the full year 2026 from the previous USD 60.5 billion to USD 62.5 billion.

The Oncology division generated revenue of approximately USD 4.17 billion in the last quarter, an increase of nearly 9% compared to the previous quarter. Padcev, the ADC candidate, increased revenue by 23% to USD 667 million. This was also driven by FDA approval for the treatment of muscle-invasive bladder cancer. Lorbrena grew by 37%, driven by strong market penetration in the treatment of ALK-positive non-small cell lung cancer. The 7-year data from the CROWN study underscore the drug's efficacy, with a 55% probability of disease progression compared to 3% with Xalkori. This represents a significant benefit for patients.

The high costs of USD 4.3 billion reported under US accounting principles stem from non-cash impairment charges. Adjusted earnings per share were USD 0.77, close to the prior-year level. Research and development expenses, however, rose by 13%, with a focus on oncology and obesity candidates such as berobenatide. The cost-cutting programs are expected to yield savings of approximately USD 6.7 billion by 2029.

Oncology has enormous revenue potential. That is why there are so many novel approaches. BioNTech is struggling with declining COVID-19 revenues, but its billions in cash reserves and a promising pipeline could bring about a turnaround. Vidac Pharma is relocating its operations to Strasbourg, and with Phase 2b data expected in November, another step toward a therapy could be achieved. Pfizer is impressing with operational growth in oncology, while cost-cutting programs are expected to ease the strain on the balance sheet.