Vidac Pharma, BioNTech, Bayer - Billion-Dollar Gene Therapy Market Attracts Investors

Vidac Pharma: Breakthrough in cancer therapy with novel treatment approach

The British biotech company Vidac Pharma (ISIN GB00BM9XQ619) has reached an important milestone in the development of innovative cancer therapies. The US Patent Office has granted the Company a groundbreaking patent for a completely new therapeutic approach: the treatment aims to normalize the metabolism of cancer cells – an approach that experts refer to as "Warburg effect reversal".

The Warburg effect describes how cancer cells obtain energy by fermenting glucose – even when oxygen is present. This inefficient process leads to extremely high glucose consumption, which fuels tumor growth. Vidac Pharma has developed an innovative approach that targets the enzyme hexokinase-2 (HK2). HK2 is overexpressed in cancer cells and blocks certain channels in the mitochondria. Vidac Pharma's agents detach HK2 from these channels, normalizing the metabolism of cancer cells, re-enabling programmed cell death and inhibiting tumor growth. The first clinical data in the treatment of skin cancer and lymphoma are promising.**

The two lead products, VDA-1275 and VDA-1102, are already showing promising results in clinical studies. VDA-1102 is currently in Phase 2b trials for the treatment of skin cancer precursors and lymphomas. VDA-1275 has shown to be highly efficacious in animal models, both alone and in combination with established cancer therapies.

CEO Prof. Max Herzberg emphasizes that Vidac Pharma is the only company worldwide with this promising therapeutic approach in the US market. The analyst firm Sphene Capital values the stock at a price target of EUR 4.90 - representing significant growth potential compared to the current price of EUR 0.52.

The first Phase 2b study with VDA-1102 has already shown a 40% complete and 80% partial regression of skin lesions. The development of VDA-1275 as a systemic therapy for solid tumors is expected to enter the clinical phase in early 2025.

BioNTech: Oncology pipeline growing - COVID business stabilizing at a lower level

According to the latest Earnings Call, BioNTech (ISIN US09075V1026) reported a significant revenue increase in the third quarter of 2024, reaching EUR 1.24 billion (previous year: EUR 895.3 million). Net income rose to EUR 198.1 million. The early approval of the variant-adapted COVID-19 vaccines compared to last year was the main driver of this positive development.

BioNTech is making good progress in the development of new cancer drugs in its oncology pipeline: the Company has initiated two important studies with a novel antibody (BNT327) in aggressive forms of lung and breast cancer. The development of a personalized vaccine against bladder cancer is also progressing successfully.

"Our multi-platform technology and the progress in our oncology pipeline underscore our strategy of developing innovative combination therapies," emphasized CEO Uğur Şahin.For the full year, BioNTech expects revenue at the lower end of the guidance range of EUR 2.5 billion to EUR 3.1 billion. The financial position remains solid, with EUR 17.8 billion in liquid funds. Research and development costs for 2024 are still expected to be between EUR 2.4 and 2.6 billion, while the forecast for administrative and selling expenses has been reduced to between EUR 600 and 700 million.

Bayer partner Regeneron disappoints with Eylea® sales – Shares under pressure

US pharmaceutical manufacturer Regeneron, development partner of Bayer (ISIN DE000BAY0017), has fallen short of market expectations for the second time in a row with the higher-dose version of its eye drug Eylea®. With annual sales of USD 3.4 billion, Eylea® is Bayer's second most important drug. It is used to treat eye diseases such as retina detachment or diabetic eye damage. The drug is injected into the eye, deterring many patients. The higher-dose version is intended to help defend the market position against growing competition from Roche and Novartis. However, quarterly sales of USD 392 million for Eylea® HD were well below analyst forecasts, causing Regeneron's share price to fall by 9%.

While total Eylea® sales in the US rose 3% to USD 1.54 billion, this increase was mainly due to an increase in wholesaler inventories. "We therefore expect a negative impact on Eylea® HD sales in the fourth quarter," warned Marion McCourt, Executive Vice President at Regeneron.

The development is particularly relevant for Bayer, which markets Eylea® outside the US. With sales of EUR 3.2 billion in the previous year, Eylea® is the second most important drug in the portfolio. The higher-dose version, approved in the EU and Japan since January 2024, was supposed to offset growing competitive pressure from products such as Roche's Vabysmo.

Vidac Pharma, a pioneer in the "Warburg effect reversal" in cancer therapy, offers the highest price potential but also the greatest risk. With a market capitalization of EUR 27-30 million and a price target of EUR 4.90, the stock is for investors who have done their research. BioNTech has solid finances, with EUR 17.8 billion in liquidity and a promising oncology pipeline. The successful transformation from a COVID-19 specialist to a broader-based immunotherapy company makes the stock attractive for long-term investors. Bayer, on the other hand, faces the challenge of reducing its dependence on its blockbuster Eylea®. Disappointing sales of the higher-dose version in the competitive ophthalmology market show the need for new growth drivers.