Bachem rises on another peptides contract to fill new capacity

BACHEM HOLDING AG

03/03/2023 08:11

** Shares in Bachem  BANB.S  rise 4.3% after the Swiss
biotech supplier signed a long-term contract with a new peptides
customer
    ** The order volume will exceed 500 million Swiss francs 
($532.31 million) between 2027-2031 following a joint
development project, the company says
    ** "The new contract announced today helps fill new
capacities that will be ramped up in 2024, which is positive and
decreases the risk of the business model of growth based on
heavy investment in new capacities, as they have to be filled to
increase sales and margins," Vontobel analysts say
    ** Last September, Bachem announced two contracts for
peptides with order volumes of 25 million francs in 2023 and 150
million francs in 2024
    ** The stock tops the Swiss mid-cap index  .SMIM 
    
($1 = 0.9393 Swiss francs)

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))