Bachem Holding Ag Class B · SIX:BANB
Bachem Holding Ag Class B — Investor Day (September 2022)
36 slides from Bachem Holding Ag Class B's investor day presentation, Sep 20, 2022
Slide 1: Bachem Capital Markets Day, September 20, 2022
Date | September 20, 2022 Location | Zurich/Zoom Call Name | Bachem CEC
Slide 2: Chairman and management presenters
Kuno Sommer Thomas Meier Torsten Wöhr Chairman of the Board CEO CMO Günther Loidl Roland Schürmann Alain Schaffter CTO COO CFO 2 Bachem Capital Markets Day Sep 20, 2022
Slide 3: Agenda
Introduction Long-term focus, majority shareholder Kuno Sommer, Chairman Mission Transforming the TIDES CDMO space Thomas Meier, CEO Market Benefiting from the growth of TIDES therapeutics Torsten Wöhr, CMO Innovation Pushing industry boundaries in chemical synthesis Günther Loidl, CTO Operations &
Slide 4: Kuno Sommer
Kuno Sommer 4 Bachem Capital Markets Day Sep 20, 2022
Slide 5: Introduction: long-term focus, majority shareholder
• Majority shareholder family long-term committed to sustainable growth. • First 50 years history for CHF 500 million, next 5 year target for second CHF 500 million sales. • TIDES markets are facing disruptive changes, driven through medical needs with blockbuster potential and growing switch from r
Slide 6: Thomas Meier
Thomas Meier 6 Bachem Capital Markets Day Sep 20, 2022
Slide 7: Complexity makes TIDES a domain for specialists
Peptides • More specific, efficacious and safer than small molecules. • Lower cost and immunogenicity than biologics. • Complex production processes favor specialists with ability to Complexity makes scale. TIDES a domain for specialists. Oligonucleotide therapeutics • siRNA & ASO deliver gene-silen
Slide 8: Bachem as CDMO for TIDES
• Contract development and manufacturing organization (CDMO) for TIDES (PepTIDES and OligonucleoTIDES). • Full spectrum of TIDES active ingredients by volume (grams, kgs, tons) & complexity. • Chemical synthesis for tailored formulations and delivery routes. • Compact small molecule business & verti
Slide 9: Customer landscape shifting from recombinant to chemical synthesis
Customer landscape shifting from TIDES expansion into recombinant to chemical synthesis new therapeutic indications New generation of Synthetic manufacturing Peptides Oligonucleotides metabolic disease of peptide generics medicines (diabetes, obesity) 15-20 peptide-based e.g. peptidic complement bey
Slide 10: Order details and key takeaways
Order details • Two contracts signed with order volumes of CHF 25 million in 2023 and CHF 150 million in 2024. • Potential for significantly larger orders for the following years under negotiation. • Companies agree to maintain customer confidentiality. • Manufacturing primarily in “Tides FABricatio
Slide 11: CMO, CDMO and trailblazing CDMO
CMO CDMO «Trailblazing» CDMO “Best of both worlds”: First-mover advantage & Cost-effective manufacturing, Sponsor and Bachem develop access for sponsors to new e.g. for sponsors with existing and execute a tailored manufacturing technology with processes. process to manufacture superior quality and
Slide 12: Torsten Wöhr
Torsten Wöhr 12 Bachem Capital Markets Day Sep 20, 2022
Slide 13: Increasing patient populations and high unmet need
Increasing patient populations, API quantities / complexity of active ingredients High unmet need Endocrine Obesity/ Cardiovascular Paroxysmal Nocturnal Diabetes Disorders Weight loss Disease Hemoglobinuria (PNH) Acromegaly Hyperglycemia « Expansion of market size druggable space» Octreotide market
Slide 14: CMO
CMO Commercial Benefit Stable, predictable base business. Strategic Rationale Strong cash flow and increased recession resistance. Long-term partnership agreements with CAPEX Contract Types and capacity reservation components. Key customer Supply security, capacity for future growth, efficient manuf
Slide 15: CDMO
CDMO Feeder for commercial pipeline through active portfolio management Commercial Benefit and investment in generic product portfolio. Strategic Rationale Value of development- and regulatory expertise. Master Service Agreements with purchase orders and additional Contract Types agreements for serv
Slide 16: Trailblazing CDMO
«Trailblazing» CDMO Commercial Benefit Feeder for NCE pipeline and access to new markets. Technology partnership effects and ability to differentiate against Strategic Rationale competitor and captive players. Purchase Order System and supply agreements with focus on Contract Types technology collab
Slide 17: Günther Loidl
Günther Loidl 17 Bachem Capital Markets Day Sep 20, 2022
Slide 18: PepTIDES and OligonucleoTIDES
PepTIDES OligonucleoTIDES Natural Biopolymers Present in all living organisms. Built from monomers. Most complex chemical APIs. Example Glucagon Knowhow and technology are key. Example Nusinresen Synergies along entire value chain. 18 Bachem Capital Markets Day Sep 20, 2022
Slide 19: TIDES synergies
PepTIDES TIDES synergies OligonucleoTIDES Building blocks (monomers) Building blocks (monomers) SPPS Solid Phase Synthesis SPOS Chromatography Purification Chromatography Lyophilization Isolation Lyophilization Quality Controls QC Quality Controls Quality Assurance Regulatory Quality Assurance 19 Ba
Slide 20: Chemical synthesis versus recombinant production
The Peptides are inherent to the human body, excellent safety profile, Challenge half-life elongation with chemical modifications. Chemical synthesis Recombinant production peptides made with chemical means peptides based on living cells Legacy focus on small volumes & high molecule focus on large v
Slide 21: Stirred bed reactor, continuous chromatography, molecular hiving
Stirred bed Continuous Molecular Hiving Technology reactor Chromatography Synthesis Application • Peptides and • Peptides, expansion to • Oligonucleotides Area Oligonucleotides oligonucleotides • Bachem-owned IP • Bachem first-mover in • Collaboration with Jitsubo Innovative (JP), Univ. Tokyo (JP) •
Slide 22: Roland Schürmann
Roland Schürmann 22 Bachem Capital Markets Day Sep 20, 2022
Slide 23: Key Bachem advantages and workforce education
Key Bachem advantages: • Highly educated workforce. • Position in Basel-region biopharma hub with strong headquarter hub. • Extensive TIDES network at universities and chemistry faculties. • Strong culture and commitment to apprenticeships, training and internal talent. Education of Bachem workforce
Slide 24: Tides FABrication Plant (Building K)
“Tides FABrication Plant” (Building K) • TIDES fabrication plant: 15’700 m2 (170’000 ft2). • Groundbreaking: July 2021. • Construction on track for launch of manufacturing in 2024. • Capabilities for both peptides and oligonucleotides. • Strong focus on green chemistry and automation • Modular expan
Slide 25: Site strategies: Bubendorf, Vionnaz, Vista, Torrance
Bubendorf (CH) Vionnaz (CH) Vista, California Torrance, California • Sustain and expand • Expand capacity for • Increase scale and • Increase automation world-leading Center back-integration for capacity for mid to and efficiency. of Excellence for AAD-supplies and large scale projects. • Modernize
Slide 26: New manufacturing site in Switzerland
• Site focused on manufacturing. • Land purchase planned for 2022. • Plan to begin production latest by end of decade. • Modular expansion over time. • North-Western Switzerland: Easy technology-transfer from Bubendorf, tap into life science cluster. 26 Bachem Capital Markets Day Sep 20, 2022
Slide 27: Supply chain and starting materials
• In-house production of quality-relevant starting materials and building blocks in small-molecule facility in Vionnaz. • In-house production of price-relevant starting material to reduce dependencies on specific regions. • Additional offering of exclusive building blocks to give our customers to di
Slide 28: Operational efficiency and utilization
Continuous 24/7 shift implementation Optimize the demand to supply planning/ in Bubendorf. data analyses/material-/information flow. Campaign production and optimized Rapid deployment of new technology, cleaning/set-up. e.g. automation, in-process analytics. 28 Bachem Capital Markets Day Sep 20, 202
Slide 29: Alain Schaffter
Alain Schaffter 29 Bachem Capital Markets Day Sep 20, 2022
Slide 30: Financing CAPEX and top priorities
Financing CAPEX Top Priorities • Overall, CHF 1 CAPEX equals minimum • “Tides FABrication Plant” of CHF 1 in annual sales. (Building K) • Key sources: Proceeds from 2021 equity 2021-2024: CHF 220 million increase and operating cash flow. 2024-2026: CHF 150 million • Preference for independent financ
Slide 31: Thomas Meier
Thomas Meier 31 Bachem Capital Markets Day Sep 20, 2022
Slide 32: Growth, capacity, portfolio and profitability targets
Growth Profitability • Expected average sales of 15% per year • EBITDA ahead of 30%. 2022-2026 (CAGR). Capacity Portfolio • Deliver capacity for a rapidly growing • Oligonucleotides and peptides that make demand. a difference. • Investments across global manufacturing • Build a strong second busines
Slide 33: Summary: opening a new chapter
• Market expansion of synthetic pepTIDES and oligonucleoTIDES drug substances in large-patient diseases. • Validation of Bachem’s long-term organic growth vision & mission and specific investments: o World-class TIDES TEAM o Technical leadership e.g. «trailblazing CDMO» o Capacity expansion in locks
Slide 34: Q&A
All 34 Bachem Capital Markets Day Sep 20, 2022
Slide 35: Questions? Send an e-mail
Question? Send an e-mail to… ir@bachem.com media@bachem.com 35 Bachem H1 Results 2022
Slide 36: Forward-looking statements
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 things, str