Bachem reports excellent results for the first half-year 2021

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  • Sales grow by 35.0% to CHF 239.1 million
  • EBITDA rises from CHF 53.0 million to CHF 75.5 million and a margin of 31.6%.
  • Operating income (EBIT) increases from CHF 40.3 million to CHF 61.9 million and a margin of 25.9%.
  • Net income rises from CHF 32.8 million to CHF 53.1 million and a margin of 22.2%.
  • Investments of over CHF 50 million and creation of 107 new jobs (77 of which are in Switzerland) since the beginning of the year.

Outlook:

  • Sales of CHF 500 million are now expected for the year 2021.
  • Bachem expects an average annual rate of growth of about 15% for the coming five years.
  • Bachem intends to grow operating income (EBIT) at a rate ahead of sales.
  • The company is now planning investments over CHF 500 million for the next five years across sites and business areas in order to further expand capacity.

Thomas Meier, CEO of Bachem, commented on the results of the past half-year: “The first half of 2021 has gone very well for Bachem. I am particularly pleased that we have been able to grow both our business, as well as our capacity and workforce simultaneously. Bachem is definitely on track to reach its company goals and continue to grow sustainably and profitably in the coming years.”

Group Results

The Bachem Group increased its sales during the first half of 2021 in Swiss francs by 35.0% to CHF 239.1 million. Operating income before

depreciation and amortization (EBITDA) rose by 42.5% to CHF 75.5 million and operating income (EBIT) grew by 53.9% to CHF 61.9 million. This results in an EBITDA margin of 31.6% (first half-year 2020: 29.9%) and an EBIT margin of 25.9% (first half-year 2020: 22.7%). Net income increased by 61.8% to CHF 53.1 million and a margin of 22.2% (first half-year 2020: 18.5%).

Growth was registered across all product categories and sales regions with numerous approvals of customer products being a particularly welcome development. In the category Commercial API, sales rose by 35.8% compared to the first half of the year 2020 to CHF 148.2 million. In the category CMC Development growth was 30.7% to CHF 68.3 million. The Research & Specialties category grew by 43.7% to CHF 22.6 million. Split by sales regions, growth was 41.3% in Europe/Asia and 29.5% in North America (all growth figures in Swiss francs).

The expansion of the oligonucleotide business is proceeding according to plan. Additional oligonucleotide production facilities are scheduled to come on-stream at the Bubendorf location by the end of 2021. In the medium term Bachem is targeting annual sales of CHF 100 million in this area and a market position among the top three oligonucleotide contract development and manufacturing organizations (CDMOs).

Bachem is pursuing a global investment program of over CHF 500 million until 2026. During the first half of 2021, CHF 50.6 million were invested, primarily for the construction and expansion of new production capabilities. The specific investment sum is adjusted to medium-term growth expectations on an ongoing basis.

Financial Calendar

  • March 18, 2022 Publication of Annual Report 2021 and Media and Financial Analyst Conference
  • April 27, 2022 Annual General Meeting (Financial Year 2021)
  • August 25, 2022 Publication of Half-Year Report 2022

About Bachem

Bachem is a leading, innovation-driven company specializing in the development and manufacture of peptides and oligonucleotides. The company, which has 50 years of experience and expertise, provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide and offers a comprehensive range of services. Bachem operates internationally with headquarters in Switzerland and locations in Europe, the US and Asia. The company is listed on the SIX Swiss Exchange.

Bachem celebrates fifty years of company history. From Peter Grogg’s business idea in the 1970s to the world’s leading company in the development and production of peptides and oligonucleotides. A success story based on courage, innovation, quality, partnership, and unique people.

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