Bachem Holding Ag Class B · SIX:BANB
Bachem Holding Ag Class B — Investor Day (November 2024)
40 slides from Bachem Holding Ag Class B's investor day presentation, Nov 21, 2024
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY Date | November 21, 2024 Location | Zurich / Zoom Name | Kuno Sommer, Thomas Meier, Torsten Wöhr, Günther Loidl, Alain Schaffter
Slide 2: Agenda
AGENDA Introduction Kuno Sommer, Chairman Mission Update Thomas Meier, CEO & COO Market Torsten Wöhr, CCO Capacity & Innovation Günther Loidl, CTO Financing Alain Schaffter, CFO Summary Thomas Meier, CEO & COO Q&A All 2 Bachem CMD 2024 Bachem CMD 2024
Slide 3: Introduction
INTRODUCTION Kuno Sommer, Chairman 3 Bachem CMD 2024
Slide 4: Leader in TIDES driven by innovation and lasting customer partnerships
LEADER IN TIDESDRIVENBY INNOVATION ANDLASTINGCUSTOMERPARTNERSHIPS Majority shareholder, Discipline, expertise & Serving the enormous Complexity of a Many “firsts” - long-term committed perseverance have growth in demand for larger, more diverse Changing market to sustainable growth built a global le
Slide 5: Mission Update
MISSION UPDATE Thomas Meier, CEO & COO 5 Bachem CMD 2024
Slide 6: Bachem: a leading specialist for drug substances
BACHEM: A LEADING Contract development and manufacturing organization Broad capabilities in PepTIDES and SPECIALIST (CDMO) OligonucleoTIDES active FOR DRUG pharmaceutical ingredients (API) manufacturing SUBSTANCES Long-term partnerships Focused on chemical Annual sales of CHF 577.3 with pharmaceutic
Slide 7: Specialist in complex molecules that matter
SPECIALIST IN COMPLEX MOLECULES THAT MATTER Tides Biology Applications (examples) Peptides • Molecules of up to approx. 100 amino • Cancer acids • Metabolic, cardiovascular diseases, • Occur naturally in the body, e.g. as a diabetes & obesity hormone • Neuronal disorders • Cosmetics • In-vitro diagn
Slide 8: Long-term & growth-oriented company
LONG-TERM &GROWTH -ORIENTEDCOMPANY (SALES IN CHF M,EMPLOYEES- FTE) 600 577.3 2500 531.7 503.2 500 2000 2006 2009 (H1) 402.0 400 1776 1639 1500 313.7 1475 300 282.5 261.6 1209 236.5 1097 1000 1057 979 200 500 100 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 sales H2 sales FY sales Employees (F
Slide 9: Synthetic peptide manufacturing moves into the spotlight
SYNTHETICPEPTIDEMANUFACTURING MOVESINTOTHESPOTLIGHT TIDES are the next in a history of pharma game changers …new medicines that revolutionize the way we treat large population diseases: The 1990’s TODAY Incretins, HIV Kinase Hep C Anti-PD-1 mRNA Amylin, PYY Drugs Inhibitors Drugs in Cancer Vaccine P
Slide 10: Our strategy: continue TIDES focus & expand capacity & know-how
OUR STRATEGY: CONTINUE TIDES FOCUS & EXPAND CAPACITY & KNOW -HOW… • Process innovation required to increase yields • Urgent need for TIDES capacity Market • Regulation & imperative toward green dynamic • Potential new market entrants chemistry • Near-shoring effect Incretins, Amylin, PYY Short-term
Slide 11: Lead as partner of choice for all TIDES CDMO needs
… AND LEAD AS PARTNER OF CHOICE FOR ALL TIDES CDMO NEEDS • Efficient high-quality manufacturing Capture CMO for approved drugs growth Contract Manufacturing potential • Contributes to supply of approved Organization medicines for patients worldwide • New technologies that address CDMO manufacturing
Slide 12: Highlights of operational agenda driving scale-up and efficiency
Transformation to leverage all HIGHLIGHTSOFOPERATIONAL AGENDA capabilities DRIVINGSCALE-UP AND EFFICIENCY One-pot LPOS ▪ Network strategy: Evolve from a ▪ Allow for scalability: Reduce complexity headquarter-satellite approach to an even in structures and processes. Simplicity more integrated networ
Slide 13: One global GMP network: integrated sites & capacities
Capture growth ONEGLOBAL GMP NETWORK: potential INTEGRATED SITES & CAPACITIES Bubendorf Sisslerfeld Vionnaz Vista Torrance Fully integrated TIDES Large scale Center of excellence small Integrated Bachem Americas approach: Site Positioning development and manufacturing center for molecule API & amino
Slide 14: Strengthening operational management: examples of recent experienced hires
Transformation to leverage all STRENGTHENING OPERATIONAL MANAGEMENT : capabilities EXAMPLESOFRECENTEXPERIENCEDHIRES Hans van Hees MichaelIndlekofer Patrick Scheidegger COO Europe Head Global Strategic Capex Head QA Bubendorf Site In role October 1, 2024 In role May 1, 2024 In role May 1, 2024 >25 ye
Slide 15: Market
MARKET Torsten Wöhr, CCO 15 Bachem CMD 2024
Slide 16: Peptides as a modality for medicines: reaching more patients than ever before
PEPTIDESAS A MODALITYFORMEDICINES: REACHINGMOREPATIENTSTHANEVERBEFORE Multi-ton Growing Hundreds of kg Material Demand Multi-kg Increasing Chemical Complexity Dual and triple agonists GLP-1R agonists Glucagon From Niche to Octreotide Mainstream MASH / CV / Obesity other Diabetes Weight loss Endocrin
Slide 17: Peptide market: strong clinical pipeline across therapeutic indications
PEPTIDE MARKET: STRONG CLINICALPIPELINEACROSS THERAPEUTICINDICATIONS No. of late-stage & commercial peptide projects (June 2024) • Overall market size of ca. CHF 1.8 bn. • Bachem with good pipeline of late-stage assets across multiple disease areas. 196 178 175 160 • Obesity and diabetes currently d
Slide 18: Capacity drivers: obesity co-morbidities
CAPACITYDRIVERS:OBESITYCO-MORBIDITIES COMORBIDITIES PREVENTION All new anti-obesity agents in US economists estimate that development need to show reimbursing obesity drugs effects on obesity-associated could save over $1 trillion in diseases and cardiovascular healthcare costs over the next mortali
Slide 19: A playing field for complex chemical synthesis: GLP-1 agonists and next gen anti-obesity peptides
A PLAYING FIELD FOR COMPLEX CHEMICAL SYNTHESIS: GLP-1 AGONISTS AND NEXT GEN ANTI -OBESITY PEPTIDES Chemically modified and pharmaceutically enhanced natural products produced synthetically and/or by rDNA technology Single Glucagon GIP GLP-1 Amylin PYY The next generation: dual agonists, currently ma
Slide 20: Capacity drivers: several assets with blockbuster therapeutic potential
CAPACITYDRIVERS:SEVERALASSETS WITH “BLOCKBUSTER” THERAPEUTICS POTENTIAL GLP-1a/Gut Hormones Agonists IL-23R Antagonist Indication: Obesity Indication: Psoriasis US prevalence: >100 million adults US prevalence: ~7.5 million adults PCSK9 Inhibitors Peptide-Drug Conjugates Indication: Hypercholesterol
Slide 21: Oligonucleotide market remains development heavy, but will also face scale-up challenges
OLIGONUCLEOTIDEMARKET REMAINS DEVELOPMENT - HEAVY, BUT WILL ALSO FACE SCALE -UP CHALLENGES No. of late-stage & commercial oligonucleotide projects (June 2024) • Larger patient populations will highlight efficiency and sustainability limits of current 92 technologies. 90 75 80 • Bachem with a solidly
Slide 22: Customer demand backs commercial outlook
Capture growth CUSTOMER DEMAND BACKS potential COMMERCIAL OUTLOOK New large-scale capacity facilities Current «baseline» Organic baseline business Potential for expansion Current long-term CHF 1bn. by + contract volumes 2026... 577.3m CHF + from div. customers (e.g. medium-sized + = commercial produ
Slide 23: Capacity & Innovation
CAPACITY & INNOVATION Günther Loidl, CTO 23 Bachem CMD 2024
Slide 24: Where does TIDES manufacturing need to go?
WHERE DOES TIDES MANUFACTURING NEED TO GO? LARGER, HIGHER QUALITY & EFFICIENCY, GREENER Four major drivers Capacity expansion Process Innovation Sustainability Chemical complexity • Scaling experience between • Process development needs to • Demand of peptides in metric • Chemical expertise is neces
Slide 25: Building K – scaling up with cutting-edge TIDES technology
Capture growth BUILDING K– SCALING UP WITH potential CUTTING-EDGE TIDES TECHNOLOGY Reactors Reagents Supply Utilities 25 Bachem CMD 2024
Slide 26: Building K – complexity driver 1: expanded scope during construction
Capture growth BUILDING K– COMPLEXITY DRIVER 1: potential EXPANDED SCOPE DURING CONSTRUCTION Original plan Pivot to large-scale 2020/21 facility today • Small and medium-sized • Large scale capacity equipment • Large portion booked • Step-by-step annual order ahead of launch acquisition post-launch
Slide 27: Building K – complexity driver 2: overlapping phases for production units
Capture growth BUILDING K– COMPLEXITY DRIVER 2: potential OVERLAPPING PHASES FOR PRODUCTION UNITS Unit Q3 2024 Q2 2025 Technical Scoping & Commissioning «A» Design Construction & Qualification Batches Commercial & Validation Technical Scoping & Commissioning «B» Design Construction & Qualification B
Slide 28: New large scale site – Bachem Sisslerfeld
Capture growth NEW LARGE SCALE SITE– BACHEMSISSLERFELD potential Greenfield Long-term potential 15 ha = 37 ac • On track for manufacturing launch end-of-decade • Ideal location in Life Science Cluster Northwest- Switzerland/Center of Europe • Focus on securing large-scale capacity partnerships • Pro
Slide 29: Mastering complexity is key to maximizing reactor yields
MASTERINGCOMPLEXITYIS KEY TO MAXIMIZING REACTORYIELDS Molecular Complexity Equipment innovation Quality of Starting Materials Reactor Process innovation Yield Reactor volumes Operational Excellence 29 Bachem CMD 2024
Slide 30: Leverage industry-leading innovation
LEVERAGEINDUSTRY-LEADINGINNOVATION Ensure long- term competitiveness Manufacturing Technology • > 40 technology innovations in progress Innovation Pipeline • First-mover in driving efficiency & green chemistry (e.g. continuous chromatography) • Know-how transfer from peptides to oligonucleotides to
Slide 31: Driving the next generation in TIDES technology
DRIVING THE NEXT GENERATION Ensure long- term IN TIDES TECHNOLOGY competitiveness Tag-assisted synthesis MCSGP (Continuous Chromatography) reduce environmental impact - improve yield & efficiency - lower costs 31 Bachem CMD 2024
Slide 32: Financing
FINANCING Alain Schaffter, CFO 32 Bachem CMD 2024
Slide 33: Financing growth
Capture growth FINANCINGGROWTH potential Gradual diversification Ongoing Capex required to deliver capacity of financing sources Bldg. K • Operational cash flow Vista • Customer financial contributions Sisslerfeld • Options for third party debt/bond instruments smaller projects, maintenance under re
Slide 34: Summary
SUMMARY Thomas Meier, CEO & COO 34 Bachem CMD 2024
Slide 35: Our strategy: continue TIDES focus & expand capacity & know-how
OUR STRATEGY: CONTINUE TIDES FOCUS & EXPAND CAPACITY & KNOW -HOW… • Process innovation required to increase yields • Urgent need for TIDES capacity Market • Regulation & imperative toward green dynamic • Potential new market entrants chemistry • Near-shoring effect Incretins, Amylin, PYY Short-term
Slide 36: Current outlook
CURRENTOUTLOOK 2024 Full Year 2026 Sales Sales Mid-high single-digit growth in > CHF 1.0 bn. local currencies. Profitability Profitability Stable EBITDA margin EBITDA ahead of 30%. compared to prior year in local currencies. 36 Bachem CMD 2024
Slide 37: Q&A
QEA All 37 Bachem CMO 2024 BACHEM |." BE
Slide 38: Upcoming events
UPCOMING EVENTS ANNUAL REPORT 2024 February 27, 2025 Full Year Results Conference ANNUAL GENERAL MEETING April 30, 2025 (BUSINESS YEAR 2024) HALF-YEAR REPORT 2025 July 24, 2025 Half Year Call 38 Bachem CMD 2024 Bachem CMD 2024
Slide 39: Thank you for your attendance!
THANK YOU FOR YOUR ATTENDANCE! Question? Send an e-mail to… [email protected] [email protected] 39 Bachem CMD 2024
Slide 40: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other