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About Bachem Holding AG
Bachem Holding AG (BCHMY) is a globally recognized, innovation-driven company specializing in the development and manufacturing of peptides and oligonucleotides, which are essential components in modern pharmaceuticals. With over 50 years of expertise, Bachem provides end-to-end solutions for research, clinical development, and commercial production to pharmaceutical and biotechnology companies worldwide. The company operates internationally with its headquarters in Switzerland and additional manufacturing sites in Europe, the United States, and Asia.
Core Business Areas
Bachem's operations are segmented into three primary business areas:
- Commercial Active Pharmaceutical Ingredients (APIs): Bachem produces high-quality peptides and oligonucleotides for use in commercial drugs, including both generic and patented formulations.
- Clinical Drug Development (CMC Development): The company supports pharmaceutical companies in developing peptide-based drugs for clinical trials, leveraging its robust pipeline and expertise in custom manufacturing.
- Research Chemicals and Specialty Products: Bachem supplies research-grade peptides and specialty chemicals used in diagnostics, academic research, and pharmaceutical R&D.
Market Position and Competitive Edge
Bachem is a key player in the pharmaceutical manufacturing industry, with a unique focus on peptides and oligonucleotides, which are increasingly used in innovative therapies. Its vertically integrated business model, spanning development to large-scale manufacturing, allows it to deliver tailored solutions to clients. This specialization, coupled with its global manufacturing footprint, positions Bachem as a trusted partner for pharmaceutical companies seeking high-quality and reliable suppliers.
The company differentiates itself through its commitment to innovation, evidenced by significant investments in capacity expansion and cutting-edge manufacturing technologies. Competitors in this space include Lonza and Catalent, but Bachem's focus on niche pharmaceutical components and its extensive experience provide a competitive advantage.
Strategic Initiatives and Capacity Expansion
To meet growing global demand, Bachem is implementing an ambitious capacity expansion program. This includes the construction of a state-of-the-art production plant for large-scale peptide and oligonucleotide manufacturing in Bubendorf, Switzerland, and the development of a new site in Sisslerfeld. Additionally, the company is optimizing its existing facilities to enhance operational efficiency and site-specific capabilities. For example, its Vista site in the U.S. focuses on high-volume production, while the Torrance site specializes in small-volume clinical projects.
These strategic investments reflect Bachem's long-term vision of becoming a leading supplier of peptides and oligonucleotides for the pharmaceutical industry. By aligning its infrastructure with market needs, the company aims to achieve sustainable growth and operational excellence.
Significance in the Industry
Bachem's expertise in peptides and oligonucleotides places it at the forefront of pharmaceutical innovation. These molecules are critical for developing treatments for chronic and rare diseases, including cancer, diabetes, and genetic disorders. As demand for these therapies grows, Bachem's role as a specialized manufacturer becomes increasingly vital. The company's commitment to quality, innovation, and customer-centric solutions underscores its importance in the global pharmaceutical supply chain.
Conclusion
Bachem Holding AG is a cornerstone in the pharmaceutical manufacturing industry, offering specialized products and services that enable the development of life-saving therapies. Its focus on innovation, strategic capacity expansion, and deep expertise in peptides and oligonucleotides make it a valuable partner for pharmaceutical and biotechnology companies worldwide. As the demand for advanced therapeutics continues to rise, Bachem's strategic initiatives position it for sustainable growth and long-term success.
Bachem (SIX: BANB) reported strong financial results for 2024, with group sales increasing 4.8% to CHF 605.3 million and EBITDA rising 5.7% to CHF 176.3 million. The company achieved an EBITDA margin of 29.1% and net income growth of 7.5% to CHF 120.2 million.
Sales performance across categories showed positive momentum: Commercial API sales grew 5.8% to CHF 327.0 million, CMC Development increased 3.0% to CHF 234.4 million, and Research & Specialties rose 7.5% to CHF 43.8 million.
The company invested CHF 292.2 million in capacity expansion in 2024, including progress on building 'K' in Bubendorf, set to begin test batch production in Q2 2025. Bachem targets 10-15% growth in local currencies for 2025, with planned CAPEX investments exceeding CHF 400 million. The company aims to achieve annual sales of over CHF 1 billion with an EBITDA margin above 30% by 2026.
Bachem Group (SIX: BANB) reported a slight sales growth of 0.2% to CHF 240.3 million in the first half of 2024, with a 1.3% increase in local currencies. EBITDA rose by 5.6% to CHF 55.5 million, with a margin of 23.1%. The company expects mid- to high-single-digit percentage growth in local currencies for 2024, maintaining a stable EBITDA margin. Bachem aims for annual sales exceeding CHF 1 billion and an EBITDA margin over 30% by 2026.
Sales in the Commercial API category declined by 13.4%, while CMC Development saw an 18.7% increase. The company is expanding production capacities globally, with significant investments across all sites. Bachem has begun commissioning equipment in its largest production plant for peptides and oligonucleotides in Bubendorf and is planning a new manufacturing site in Eiken.
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