A Brief History of Bachem Holding AG

Bachem Holding AG, established in 1971, is a globally recognized Swiss company specializing in the production of peptides and oligonucleotides for the pharmaceutical industry. The company operates through two main segments: the Custom Synthesis division and the Core Products division.

In 2002, Bachem went public on the Swiss Exchange (SIX Swiss Exchange) under the ticker symbol BACH. The initial public offering was successful, allowing the company to expand its production capabilities and enhance R&D efforts. As of the end of 2022, Bachem reported a market capitalization of approximately CHF 3.8 billion.

The company has experienced strong revenue growth over the years. For instance, in 2022, Bachem generated revenues of CHF 710 million, marking an increase of 18% compared to the previous year. The growth was primarily driven by increased demand for peptide-based pharmaceuticals.

In 2015, Bachem expanded its presence in the United States by acquiring a facility in Vista, California, which bolstered its production capacity. In 2021, Bachem further expanded its footprint by opening a new facility in St. Helens, UK, which is dedicated to the production of complex peptides.

Throughout its history, Bachem has been recognized for its commitment to quality and innovation. The company invests heavily in research and development, with approximately 10% of its annual revenue reinvested into R&D initiatives. As of 2023, Bachem holds over 500 active contracts with leading pharmaceutical and biotech companies, underscoring its reputation as a reliable partner in drug development.

Bachem's focus on sustainability is also noteworthy. The company aims to reduce its carbon footprint by implementing green technologies in its manufacturing processes. In 2022, Bachem announced that it reduced greenhouse gas emissions by 15% over the prior year.

As of October 2023, Bachem continues to grow its portfolio, with ongoing collaborations in developing innovative therapies, particularly in areas like oncology and metabolic diseases. The company holds more than 100 patents related to peptide synthesis and its applications, cementing its position as a leading player in the biopharmaceutical sector.

A Who Owns Bachem Holding AG

Bachem Holding AG, a prominent Swiss company specializing in the production of peptides and other active pharmaceutical ingredients, has a diverse ownership structure. As of the latest financial reports, the company's major shareholders include a mix of institutional and individual stakeholders.

The ownership distribution is as follows:

As of the end of Q3 2023, Bachem Holding AG reported a total of approximately 6,670,000 shares outstanding. The largest institutional shareholders include major investment firms that play a crucial role in the governance and strategic direction of the company.

Among the institutional investors, notable names include:

• UBS Group AG
• BlackRock, Inc.
• Fidelity Investments

Executive management and the founding family maintain a significant interest, reflecting confidence in the company's long-term strategy and operational performance. The management team holds approximately 24.1% of the total shares, underscoring a vested interest in the company's success.

Bachem’s share performance has shown resilience, with the stock price hovering around CHF 110 as of October 2023, a reflection of the company’s strong fundamentals and growth prospects in the biopharmaceutical sector.

In the latest earnings report for Q2 2023, Bachem posted revenues of CHF 200 million, marking a year-over-year growth of 15%. This performance has been driven by increased demand for contract development and manufacturing services in the biotech industry.

Overall, the ownership structure and institutional backing have positioned Bachem Holding AG strongly within the pharmaceutical landscape, supporting its strategic initiatives and operational goals.

Bachem Holding AG Mission Statement

Bachem Holding AG, a prominent player in the pharmaceutical and biotech industry, emphasizes the value of innovation in peptide and oligonucleotide manufacturing. The company's mission statement revolves around providing high-quality solutions to support the health care industry. Bachem aims to deliver products that meet the highest standards of safety, efficacy, and sustainability for its customers and patients alike.

As of 2023, Bachem has a robust financial performance, reflecting the company's commitment to its mission. The group reported a revenue of CHF 478.5 million in 2022, marking an increase of 18.4% compared to the previous year.

The company's strategic goals are aligned with its mission to enhance health. Bachem focuses on producing high-quality active pharmaceutical ingredients (APIs) using efficient manufacturing processes, ensuring compliance with the stringent regulations of the pharmaceutical industry. In 2022, Bachem invested CHF 55 million in expanding its production capabilities and enhancing its technological infrastructure.

Additionally, Bachem is committed to sustainability. The company has set targets to reduce its carbon footprint by 30% by 2025 and aims to source renewable energy for its operations. This dedication to sustainability is a core aspect of their mission, reflecting an increasing demand for eco-friendly practices in the pharmaceutical sector.

Furthermore, Bachem's innovation strategies contribute significantly to its mission. The company has over 150 patents and invests approximately 10% of its annual revenue into research and development. This focus on innovation allows Bachem to remain at the forefront of peptide and oligonucleotide manufacturing, catering to the diverse needs of the global pharmaceutical market.

Bachem Holding AG's mission is not just about profitability; it also encompasses a commitment to quality, innovation, and environmental responsibility, positioning the company as a leader in its field.

How Bachem Holding AG Works

Bachem Holding AG, based in Switzerland, specializes in the production of active pharmaceutical ingredients (APIs) for the biotechnology and pharmaceutical industries. As of 2023, Bachem's market capitalization stands at approximately CHF 2.5 billion. The company is publicly traded on the Swiss Stock Exchange under the ticker symbol "BANB."

The company focuses on the development and manufacturing of peptides and oligonucleotides, with a commitment to high-quality production processes. In 2022, Bachem reported revenues of CHF 360 million, demonstrating a year-on-year growth rate of approximately 15%. The operating profit (EBIT) for the same year was CHF 90 million, yielding a margin of 25%.

Bachem operates five state-of-the-art production facilities: two in Switzerland and three in the United States. The company’s expansion strategy includes increasing its production capacity to meet the growing demand for both established and novel therapies. In 2023, Bachem announced a significant investment of CHF 200 million to expand its production capabilities at its locations in Vionnaz, Switzerland, and in the U.S. facilities.

The company is also known for its robust pipeline of projects. Bachem has partnerships with several leading biopharmaceutical companies, including Roche, Novartis, and Merck. The contract development and manufacturing organization (CDMO) segment contributed to approximately 60% of the total revenue in 2022, reflecting a strong trend toward outsourcing by pharmaceutical companies.

Below is a table summarizing Bachem's financial performance over the last three fiscal years:

Bachem's R&D investment aligns with its growth strategy, with a budget allocation of approximately 8% of total revenue dedicated to research and development activities. The focus is primarily on innovative peptide manufacturing methods and increasing the therapeutic applications of its products.

The global API market, which Bachem operates in, is anticipated to grow at a compound annual growth rate (CAGR) of 6.3% from 2023 to 2030, creating further opportunities for Bachem to capture market share through its high-quality offerings.

In terms of stock performance, Bachem’s stock price has increased from around CHF 300 in January 2022 to approximately CHF 485 by mid-2023, reflecting a growth of over 60%. The company’s strong fundamentals and strategic initiatives have attracted analyst ratings, with a consensus price target of around CHF 525.

Customer advisory boards and continuous feedback mechanisms are integral to Bachem's operational excellence, ensuring it meets the evolving needs of its biopharmaceutical clients. The company prides itself on maintaining a high level of compliance with regulatory standards, having received several certifications from global health authorities.

Bachem’s sustainability efforts focus on environmentally friendly manufacturing processes, aligning with industry trends toward greener production methods. The company has set targets to reduce its carbon footprint by 30% by 2025, leveraging innovative technologies and practices throughout its operations.

How Bachem Holding AG Makes Money

Bachem Holding AG specializes in the manufacturing of peptide and oligonucleotide products, focusing primarily on the pharmaceutical and biotechnology industries. The company is a leading supplier of active pharmaceutical ingredients (APIs) and is known for its high-quality production standards.

The company's revenue is generated through three main segments:

• Custom Synthesis
• Commercial Production
• Development Services

In 2022, Bachem Holding AG reported a revenue of CHF 528 million, marking an increase from CHF 440 million in 2021. This represents a growth rate of 20%.

1. **Custom Synthesis**: This segment involves the development of tailored peptides for pharmaceutical companies, which contributes significantly to Bachem's revenue. In 2022, custom synthesis accounted for approximately 61% of total sales.

2. **Commercial Production**: Bachem produces large-scale peptide active pharmaceutical ingredients for commercial use. In 2022, this segment represented around 30% of the company’s overall revenue. Demand for peptide-based therapies is rising, particularly in areas like oncology and diabetes treatments.

3. **Development Services**: Bachem also offers development services to assist clients in bringing new drugs to market. This segment contributed about 9% to the total revenue in 2022.

The company has consistently invested in expanding its production capabilities to meet growing demand. In 2022, capital expenditures reached CHF 70 million, with significant investments in a new facility in Switzerland designed to enhance production efficiency.

Bachem's profitability is reflected in its EBITDA margin, which stood at 34% in 2022, up from 32% in 2021. This improvement is driven by operational efficiencies and scaling up production capabilities.

Bachem's focus on innovation, particularly in the development of new synthetic methods and drug delivery systems, further strengthens its market position. The company's R&D expenditures for 2022 were approximately CHF 30 million, or around 5.7% of total revenue.

The global peptide therapeutics market is expected to grow at a CAGR of approximately 9.8% from 2023 to 2030, signaling robust demand for Bachem's offerings. The company maintains long-term supply agreements with major pharmaceutical companies, securing steady revenue streams.

Bachem's stock performance reflects its financial health, with shares trading at approximately CHF 110 as of October 2023, representing an increase of over 30% year-to-date, driven by positive earnings and market optimism.