BioNTech: Weak Numbers – Large Pipeline
The first-quarter figures were sobering. BioNTech generated revenue of just EUR 118.1 million, a decline of more than a third compared to the previous year. The net loss widened to around EUR 532 million. The reason is investment in the future. While vaccine revenues are drying up, R&D spending is being ramped up to EUR 557 million. There is still no cause for concern among investors, as the war chest is bulging with nearly EUR 17 billion. Additionally, a USD 1 billion share buyback is underway. Management is thus signalling that it considers the stock too cheap, even if the company remains in the red for the time being.
BioNTech is getting serious about restructuring. By the end of 2027, four German production sites as well as the one in Singapore will be closed. About 1,860 jobs will be cut, representing about one in five jobs. The hoped-for annual savings are estimated at EUR 500 million starting in 2029. At the same time, a leadership change is on the horizon. Founders Ugur Sahin and Özlem Türeci will leave the company at the end of 2026 to launch a new mRNA project. It remains to be seen who will then be calling the strategic shots. For investors, this means that there are not only clinical risks but also a potential loss of the company’s identity.
The beacon of hope is called Pumitamig. At the ASCO conference in late May, the bispecific antibody demonstrated response rates of up to 68% in lung cancer patients, along with good tolerability. Five additional regulatory trials have already been initiated. Gotistobart also impressed in the journal “Nature Medicine” with a 54% risk reduction. Seven late-stage clinical data sets are expected by year-end. BioNTech is no longer a vaccine company but a risky biotech firm with a strong pipeline. The key question for investors is whether these candidates will actually make it through to approval. The share is currently trading at around EUR 78.55.
Vidac Pharma: New Patent and European Ambitions
The EMA has granted Vidac Pharma permission to conduct a Phase 2b trial of VDA-1102 for advanced actinic keratosis. The trial is already underway in Germany, and the first patient has been treated. This is no sure thing. Small biotechs often fail due to the agency’s strict requirements. Vidac has cleared this hurdle, thereby achieving an important regulatory milestone. Preparations are simultaneously underway for a Phase 2/3 trial in cutaneous T-cell lymphoma. Investors betting on clinical catalyst events have several such opportunities on the horizon here.
Behind these programs lies a unique scientific approach. Vidac Pharma targets cancer cell metabolism, specifically the HK2 (hexokinase-2) enzyme, and harnesses the Warburg effect. This is intended to slow pathological growth and reactivate the cell’s built-in self-destruction mechanism. Initial clinical data on VDA-1102 is already available. A new addition is a preclinical psoriasis program. The psoriasis expansion is based on the same mechanism as the oncology programs. This is therefore not a gamble on an independent pipeline, but rather a platform diversification with manageable additional risk.
In May, there were two strategic announcements. The Canadian Patent Office issued a Notice of Allowance for the patent application covering a key part of the platform titled “Piperazine Derivatives, Pharmaceutical Compositions and Methods of Use Thereof.” At the same time, Vidac is negotiating entry into the European accelerator “Quest for Health,” based in Strasbourg. The goal is to establish an operational presence at the heart of the European biotech ecosystem. In addition to a US patent already granted, the company’s intellectual property portfolio is growing steadily. These are not short-term share price drivers, but solid foundations for the long-term investor. The share is currently trading at around EUR 0.57.
Pfizer: Between a Mega-Deal and a Patent Cliff
Cancer medicine is becoming a key driver for Pfizer. In the first quarter, the oncology division grew to USD 3.83 billion. That is 7% more than in the previous year. The latest coup is a global partnership with Innovent Biologics worth up to USD 10.5 billion for 12 cancer programs. Added to this are positive signals from clinical trials. The bladder cancer drug Padcev + Keytruda could receive expanded FDA approval in August, while Elrexfio showed promising results in a Phase 3 study for multiple myeloma. The USD 43 billion acquisition of Seagen is gradually paying off—Padcev + Keytruda alone increased its revenue by 39% to USD 591 million.
Revenue climbed to USD 14.45 billion, exceeding expectations by nearly USD 650 million. Adjusted earnings per share of USD 0.75 were also USD 0.03 above the forecast. However, the downside is net income. It fell by 9%, and COVID-related revenue plummeted by up to 63%. While the dividend of USD 0.43 per share remains stable, the payout ratio of over 120% of earnings is ambitious. Free cash flow of USD 2.2 billion did not fully cover the USD 2.4 billion in dividends—caution is warranted here.
Management is focusing on three pillars for the future: oncology, obesity, and cost discipline. The goal is to achieve net savings of USD 7.2 billion by the end of 2026. In the overweight segment, Pfizer plans to enter the GLP-1 therapy market with the acquisition of Metsera. Ten Phase 3 studies are set to begin this year. The biggest unknown remains the patent cliff. Between 2026 and 2030, exclusive rights for products with sales of USD 14–15 billion will expire. For the heart medication Vyndamax, however, the entry of generics into the market has been delayed until 2031 through settlements. Starting in 2029, the company expects growth to return to the high single-digit percentage range.
The cancer market offers trillion-dollar opportunities. BioNTech is betting on high-risk future investments with its mRNA platform and a promising pipeline, but is struggling with losses and leadership changes. Vidac Pharma is pursuing a patented metabolic approach and has cleared regulatory hurdles thanks to EMA approval. Pfizer is leveraging multi-billion-dollar acquisitions for strong oncology growth, but must overcome the looming patent cliff. Three strategies, one goal, but only the patient will reap the billions.
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