Vidac Pharma, Bavarian Nordic, Palantir - Dream team in travel health and AI: 3 companies in focus

Undervalued potential: Analysts see share price opportunities for Vidac Pharma in the fight against skin cancer

Skin cancer is one of the most common types of cancer worldwide and can lead to death if undetected. Higher levels of UV radiation, vacation trips to sun-intensive areas, and a lack of preventive measures put people in industrialized nations, in particular, at risk of developing this type of cancer.

In 2022, worldwide, over 331,722 new cases of skin cancer were diagnosed. The US leads the way in skin cancer statistics, followed by Germany, the UK, and Australia. Countries like Brazil and France are in the top 10 but not the top 3.

For its cancer research, the biotech company Vidac Pharma uses the latest scientific findings: cancer cells or tumors are dependent on the environment in which they grow, because cancer cells have a unique metabolism: they absorb a lot of sugar and produce lactic acid, which makes the environment acidic and low in oxygen. This altered environment protects the tumor from therapies such as radiation or chemotherapy, suppresses the immune system and promotes the growth of new blood vessels that supply the tumor.

A key protein in this process is hexokinase-2 (HK2). It blocks important channels in the cells and thus prevents the programmed cell death of cancer cells, known as apoptosis. Vidac Pharma is developing such drugs that target programmed cell death, with initial positive results.

The Company has focused its research on the VDA-1102 molecule on two types of cancer:

• Actinic keratosis, an early form of skin cancer
• Cutaneous T-cell lymphoma (CTCL), a cancer of the white blood cells
• In addition, Vidac Pharma has another molecule in the clinical pipeline (VDA-1275) that can be used for solid tumors in the near future.

Solid tumors include, for example, benign tumors in the uterus, so-called fibroids. According to the US National Institutes of Health (NIH), 20-25% of women of childbearing age have fibroids. By the age of 50, up to 80% of African-American women and up to 70% of Caucasian women have fibroids. If Vidac Pharma continues to make progress in this area, this could open up enormous market potential and provide a gentle alternative to surgical interventions.

The latest publications on the VDA-1102 molecule against skin cancer sound consistently positive:

The studies, conducted on mouse cancer and human cellular organoid models of solid tumors, show significant efficacy of the drug. VDA-1275 proved effective both as a monotherapy and in combination with standard cancer therapies and triggered an immunological response.

Analysts see a future value price potential of around EUR 4.90 over a period of 3 years for the shares of this currently highly undervalued company. So, those looking to strengthen their biotech portfolio in the medium term should take a closer look at Vidac Pharma.

Monkeypox alert brings Bavarian Nordic a million-dollar order and share price rally

As soon as the WHO announced a global threat from the monkeypox virus, investors quickly turned their attention to one of the few vaccine manufacturers: Bavarian Nordic.

The German-Danish biotech company saw its share price rise by 12% yesterday following the announcement of its quarterly results, which significantly exceeded market expectations.

Climate change and increasing travel are bringing previously unknown diseases to industrialized countries, be it the Asian tiger mosquito with the Zika virus or smallpox infections from Africa. The vaccine manufacturer generated revenue of DKK 1.43 billion in the second quarter, which is 6% above the consensus estimates quoted by Jefferies. EBITDA of DKK 420 million even exceeded expectations by 34%. Bavarian Nordic also announced that it has won a contract to supply 440,000 doses of its smallpox and Mpox vaccine to an undisclosed European country.

MVA-BN, or Modified Vaccinia Ankara-Bavarian Nordic, is a non-replicating vaccine against smallpox and monkeypox. It is marketed under the brand names JYNNEOS®, IMVANEX® and IMVAMUNE®. The vaccine is approved by several authorities, including the FDA, EMA, Health Canada, MHRA, and Swissmedic. During the first monkeypox outbreak, it received emergency use authorization in additional countries.

MVA-BN was originally developed in collaboration with the US government to provide a smallpox vaccine for the entire population. It is also suitable for immunocompromised individuals for whom traditional replicating smallpox vaccines are not recommended.

This deal brings the total value of secured contracts in the public health sector to almost DKK 3 billion. For the full year, Bavarian Nordic now expects revenue of around DKK 5.3 billion and EBITDA of around DKK 1.35 billion. The Bavarian Nordic share has already gained 53.11% since the beginning of the year.

Palantir Technologies strengthens defense business with prominent China critic

Research-based biotech and pharmaceutical companies such as Vidac Pharma and Bavarian Nordic are increasingly benefiting from AI solutions. While it still takes around ten years to turn a molecule into a drug for prescription, development cycles are decreasing thanks to networked data. For example, Palantir can use decision simulations in new data platforms to help researchers test their hypotheses in order to better weigh up the probability of certain parameters before making changes to the production process. In Big Pharma, this directly involves balance sheet items of several hundred million USD.

Market access is just as crucial as R&D. What use is the best research without commercialization? This is true in every area. Palantir has already proven its strength in the defense sector, and the latest deal with Microsoft underlines the Company's clout. Now, the US company is bringing the right person on board: former Republican congressman Mike Gallagher is joining Palantir Technologies as the new head of the defense business.

Gallagher, who represented the US state of Wisconsin in the House of Representatives, made a name for himself as Chairman of the Special Committee on China and the driving force behind legislative initiatives against TikTok. His expertise in national security issues and his critical view of China are an ideal fit with Palantir's focus on US technology leadership in areas such as artificial intelligence. Healthy travel can also mean returning safely and avoiding geopolitically tense areas. With Gallagher, Palantir is not only gaining an experienced politician but also an expert on the geopolitical challenges facing the US.

Gallagher himself is enthusiastic about his new position: "I have never done anything half-heartedly in my life. I will put all my talent and energy into this task." Gallagher first met CEO Karp a few years ago when they both participated in a panel discussion at the Reagan National Defense Forum. Karp impressed him with his candor. "Most government officials and business leaders are afraid to say anything interesting or even truthful," Gallagher said. "Dr. Karp wasn't." Gallagher replaces Doug Philippone, who will continue to serve as a consultant to the Company.

Vidac Pharma is focused on innovative therapies targeting the cellular metabolism of cancer cells. With positive research results and a potentially broad field of application beyond skin cancer, analysts see significant upside potential. Vidac Pharma could represent an interesting investment opportunity for investors interested in biotechnology in the coming years. As the manufacturer of the monkeypox vaccine, Bavarian Nordic is currently benefiting greatly from the global health situation. The Company is recording strong increases in sales and profits and has revised its forecasts upwards. Palantir is strengthening its position in the defense sector through the strategic hiring of Mike Gallagher. With its focus on AI-driven data analytics, Palantir is positioning itself as an indisputable player in promising technology areas. The recent Microsoft deal demonstrates the ability to enter into high-profile partnerships, with Gallagher opening the doors to politics. Three exciting companies operating in promising sectors. Good opportunities for investors to expand their portfolios after detailed analysis.