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: Bachem Capital Markets Day 2024
Date | November 21, 2024 Location | Zurich / Zoom Name | Kuno Sommer, Thomas Meier, Torsten Wöhr, Günther Loidl, Alain Schaffter
Slide 2: 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: Kuno Sommer, Chairman
Kuno Sommer, Chairman 3 Bachem CMD 2024
Slide 4: Introduction: key themes for sustainable growth in TIDES
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 leader TIDES as active organization landscape, new for TIDES ingredi
Slide 5: Thomas Meier, CEO & COO
Thomas Meier, CEO & COO 5 Bachem CMD 2024
Slide 6: 2'000 colleagues worldwide
Contract development and Broad capabilities manufacturing organization in PepTIDES and (CDMO) OligonucleoTIDES active pharmaceutical ingredients (API) manufacturing Long-term partnerships Focused on chemical Annual sales of CHF 577.3 with pharmaceutical and synthesis, committed million in 2023 and o
Slide 7: Tides Biology and Applications
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 diagnostics (IVD) Oligonucleotides • Fragments of
Slide 8: H1, H2 and full-year sales and employees 2016-2024
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 (FTE) 8 Bachem CMD 2024
Slide 9: TIDES are the next in a history of pharma game changers
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 Peptides 9 Bachem CMD 2024
Slide 10: Market dynamic and Bachem strategic imperatives
• 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 Long-term Peptides • Lead in TIDES expertise • Execute large-scale
Slide 11: CMO, CDMO and Trailblazing CDMO
• Efficient high-quality manufacturing Capture CMO for approved drugs growth Contract Manufacturing potential Organization • Contributes to supply of approved medicines for patients worldwide • New technologies that address CDMO manufacturing challenges Transformation Contract Development and • Open
Slide 12: Transformation to leverage all capabilities
Transformation to leverage all capabilities 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 network. avoids errors and mistakes. ▪ Strengthen management: Develo
Slide 13: Site positioning: Bubendorf, Sisslerfeld, Vionnaz, Vista, Torrance
Capture growth potential 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 «Fully capable center for small to medium scale SPPS
Slide 14: Transformation to leverage all capabilities: new leadership
Transformation to leverage all capabilities 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 years Roche, Genentech, >25 years Johnson & Johnson ~20 years Roche, Biogen, Lonza Boehringer Ingelheim, Lonza 14 Bachem CMD 2
Slide 15: Torsten Wöhr, CCO
Torsten Wöhr, CCO 15 Bachem CMD 2024
Slide 16: From niche to mainstream: growing demand and complexity
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 Endocrine Disorders Hyperglycemia > $40 bn $60-90 bn Acromegaly Breast/ prosta
Slide 17: Rising volumes – from hundreds of kilos to tons
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 driving capacity need and promising additional growth potential 78 80
Slide 18: Obesity-related health risks and comorbidities
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 mortality. decade. Obesity-related health ris
Slide 19: Single, dual and triple agonists
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 manufactured by chemical synthesis Dual GLP-1/GCG GLP-1/GIP GLP-1/Amylin Amylin/Calcitonin Future gen
Slide 20: Further peptide indications beyond obesity
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: Hypercholesterolaemia Indication: Advanced Cancer US Prevalence: >40 million adults take
Slide 21: Late-stage and commercial oligonucleotide projects
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 growing pipeline of 22 24 23 projects. 16 18 20 14 14 • Long-term strategic appeal for Bac
Slide 22: Large-scale capacity facilities and contract potential
Capture growth potential New large-scale capacity facilities Current «baseline» Organic baseline business Potential for expansion Current long-term CHF 1bn. by contract volumes + from div. 2026... 577.3m CHF + customers (e.g. medium-sized + = commercial production, clinical materials, min. CHF 450m
Slide 23: Günther Loidl, CTO
Günther Loidl, CTO 23 Bachem CMD 2024
Slide 24: Four major drivers
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 necessary R&D, clinical and commercial be targeted, quick and reliable ton range comes with f
Slide 25: Reactors, Reagents, Supply, Utilities
Capture growth potential Reactors Reagents Supply Utilities 25 Bachem CMD 2024
Slide 26: Original plan vs pivot to large-scale facility
Capture growth potential 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 • Rapid and concurrent • Gradual expansion ramp-up of production • E
Slide 27: Unit A, B, C construction and qualification timeline
Capture growth potential Unit Q3 2024 Q2 2025 Technical Scoping & Commissioning «A» Design Construction & Qualification Batches Commercial & Validation Technical Scoping & Commissioning «B» Design Construction & Qualification Batches Commercial & Validation Technical Scoping & Commissioning «C» Desi
Slide 28: Sisslerfeld greenfield long-term potential
Capture growth 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 • Proximity to pharmaceutical and chemical in
Slide 29: Reactor yield drivers
Molecular Complexity Equipment innovation Quality of Starting Materials Reactor Process innovation Yield Reactor volumes Operational Excellence 29 Bachem CMD 2024
Slide 30: Manufacturing technology innovation pipeline
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 solve greater production volume nee
Slide 31: Reduce environmental impact, improve yield, lower costs
Ensure long- term competitiveness reduce environmental impact - improve yield & efficiency - lower costs 31 Bachem CMD 2024
Slide 32: Alain Schaffter, CFO
Alain Schaffter, CFO 32 Bachem CMD 2024
Slide 33: Diversification of financing sources and ongoing capex
Capture growth 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 review End of Toda
Slide 34: Thomas Meier, CEO & COO
Thomas Meier, CEO & COO 34 Bachem CMD 2024
Slide 35: Market dynamic and Bachem strategic imperatives
• 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 Long-term Peptides • Lead in TIDES expertise • Execute large-scale
Slide 36: Guidance 2024 and 2026
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 mewn 2024 BACHEM |." BE
Slide 38: Financial calendar
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: Question? Send an e-mail
Question? Send an e-mail to… ir@bachem.com media@bachem.com 39 Bachem CMD 2024
Slide 40: 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