Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Swiss Exchange  >  Bachem Holding AG    BANB   CH0012530207


SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Bachem Holding AG: World leader in peptides

07/23/2020 | 09:32am EST

Headquartered in Switzerland with operations in Europe, the U.S. and Asia, Bachem provides a full range of services to the pharmaceutical industry since 1971.


The company specializes in the development of medicines manufacturing processes through the reliable production of peptide-based active ingredients for research labs. A comprehensive catalog of biochemicals and exclusive syntheses complete its portfolio.


Peptides are chains amino acids used as active and highly specific drug substances. Oncology, diabetes and obesity are three prominent examples of therapeutic areas in which peptides generate billions of dollars in revenues. They're also in high demand in the treatment of cardio-vascular and neurodegenerative diseases, renal failure, as well as antibiotics, vaccines and drugs for rare diseases.

Bachem supplies pharmaceutical companies (51% of revenue) and biotechs (39%) for the most part, with universities, diagnostics and cosmetics manufacturers accounting for the remaining of business. Customers value regulatory expertise, reliability, speed and availability, for each development entails a myriad of complex undertakings, trials and experimentations under strict guidelines.

With a catalog of 5,500 products in stock that can be delivered in one or two days, Bachem is ideally positioned to satisfy the most demanding customers for a wide range of applications. Coupled with an established reputation, this superb supply chain cements the company's dominance in peptides and its competitive advantage across the industry.

Last year proved eventful, as Bachem successfully expanded its portfolio, adding new capacities in the area of oligonucleotides — which are short DNA or RNA molecules used in genetic testing, research, and forensics. Demand for oligonucleotides is poised to stay greater than existing supply, so Bachem had a lightning start into this market segment.

This new business explains much of the record sales growth in North America (+37%). With a pipeline of 150 NCE ("New Chemical Entities") research projects (vs. 70 five years ago) and significant expansion opportunities in antimicrobial peptides — to combat resistance of bacterial strains against classical antibiotics — that trend looks built to last, albeit not necessarily in such epic proportions.

Still, the board of directors and executive committee both expect to break through the CHF 500 million sales barrier over the next four to five years. Should that happen, all else being equal, Bachem could earn CHF 6 per share in 2023 or 2024 — implying already hefty valuation levels of about x47 forward EPS at current share price of CHF 280.   

Importantly, per latest annual report, "priority will continue to be given to profit growth over sales growth". The latter comment underscores prudent management — a hallmark that has stamped Bachem for decades  — characterized among others by strict cost control, thoughtful and self-funded expansion and little appetite for acquisitions, despite the fragmented industry.

Hence the fortress balance sheet, with trivial amounts of long-term debt and CHF 200 million in total liabilities against CHF 331 million in current assets alone. On the financing front, the company carried out a small capital increase last year, issuing 400,000 new shares at an issue price of CHF 120 each. Of note was the full participation of founder and major shareholder Dr. Peter Grogg.

The sum of these merits lead Bachem to rank high on MarketScreener's quantitative ratings, notwithstanding its already generous valuation. In effect, at about x66 forward earnings and x41 EBITDA — on an enterprise value basis — investors jumping in at this price may leave themselves no room for mistake.

Regardless, a setback in price action may offer a great entry point to momentum-driven traders.

© MarketScreener.com 2020
All news about BACHEM HOLDING AG
2020BACHEM  : 1 Week to Go Webinar on Cost-Efficient and Green Manufacturing of Pept..
2020PolyPeptide targets 2021 IPO or sale - sources
2020BACHEM  : CFO to Depart in March 2021; Successor Named
2020BACHEM  : Webinar on Cost-Efficient and Green Manufacturing of Peptides thanks t..
2020BACHEM  : Contract manufacturer PolyPeptide prepares for 2021 Zurich listing -so..
2020BACHEM HOLDING AG  : half-yearly earnings release
2020BACHEM  : ensures global market supply of the active ingredient Propofol from Sw..
2020BACHEM  : and Jitsubo enter into exclusive Licensing Agreement
2020BACHEM HOLDING AG : Ex-dividend day for final dividend
2020BACHEM HOLDING AG : Ex-dividend day for
More news
Notations Surperformance©
Fundamental ratings
Overall rating
Trading Rating
Investor Rating
Growth (Revenue)
Earnings quality
Business Predictability
P/E ratio
7 days EPS revision
4 months EPS revision
1 year EPS revision
4 months Revenue revision
1 year Revenue revision
Technical ratings
Short Term Timing
Middle Term Timing
Long Term Timing
Bollinger Spread
Unusual Volumes
Key data
Capitalization (CHF)
4 491 351 750
Capitalization (USD)
4 822 928 054
Net sales (CHF)
313 715 000
Net sales (USD)
336 835 796
Number of employees
1 356
Sales / Employee (CHF)
231 353
Sales / Employee (USD)
248 404
Free-Float capitalization (CHF)
1 925 481 634
Free-Float capitalization (USD)
2 067 631 285
Avg. Exchange 20 sessions (CHF)
2 744 149
Avg. Exchange 20 sessions (USD)
2 946 393
Average Daily Capital Traded
Income Statement Evolution
EPS & Dividend
EPS Revisions
Revenue Revisions
Mean consensus OUTPERFORM
Number of Analysts 4
Average target price 431,67 CHF
Last Close Price 321,00 CHF
Spread / Highest target 55,8%
Spread / Average Target 34,5%
Spread / Lowest Target 23,1%
Consensus revision (last 18 months)