BACHEM: Gain of +13% in one month, but...!

...easy come, easy go, at least as of last Friday! Despite the renewed setback within a very short period of time, we are satisfied with our purchase of the shares of the pharmaceutical and biotech supplier BACHEM! After the entry on October 7 at CHF 68, the share climbed almost without interruption and we were able to enjoy a nice profit of over +13% in the meantime. But now! BACHEM will hold its "Capital Markets Day" today and it will be interesting to see what the CEO has to report.

BACHEM's share price has lagged noticeably this year, similar to other contract manufacturers such as Lonza, Siegfried and Polypeptide. But this could soon change! As a specialist in peptides and oligonucleotides, BACHEM is a leading supplier of complex molecules. A paradigm shift is taking place here! Peptides have long been a niche product compared to other classes of active ingredients. In the future, the top-selling pharmaceutical products worldwide will have peptides as active ingredients and the demand for peptide active ingredients is increasing rapidly, especially due to a new generation of drugs for diabetes and obesity; large patient groups. This leads to larger and more long-term order volumes. BACHEM is expanding to accommodate this change and is driving forward changes within the company. The new building in Bubendorf, the world's most modern facility for the production of high volumes of peptides and oligonucleotides (building "K"), is a priority. BACHEM generated sales of CHF 577.3 million in 2023 and plans to almost double this to over CHF 1 billion by 2026 with an EBITDA margin of more than 30%. Despite the large amount of capital invested in this production expansion, BACHEM remains solidly financed and has an equity ratio of over 75%; an important basis for sustainable confidence in the company. If the volatile share jumps to the price target of CHF 86 in the short term, we would realize the profit; valid until 5 December!