JPM initiates Bachem with 'overweight', says GLP-1 exposure to boost sales

BACHEM HOLDING AG

04/11/2024 11:35

** J.P.Morgan initiates Swiss biotech supplier Bachem
Holding  BANB.S  with an "overweight" rating, seeing a strong
mid-term growth story helped by its exposure to GLP-1 drugs
    ** Bachem's shares rise 6%, among the top performers on
Europe's benchmark STOXX 600 index  .STOXX 
    ** JPM notes the launch of Bachem's new plant, "Building K",
by H1 2025, which it says it has the potential to double the
company's sales by the end of the decade
    ** This growth is underpinned by Bachem's GLP-1 projects,
which JPM believes include Eli Lilly's  LLY.N  tirzepatide and
the cagrilintide component of Novo Nordisk's  NOVOb.CO 
CagriSema
    ** "We view Bachem as a strong mid-long term growth story
offering a 22% 2025-28 EBITDA CAGR and durable strong
double-digit EBITDA growth beyond," the broker writes
    ** It expects Bachem to reiterate the 2026 objectives for 1
billion Swiss francs ($1.2 billion) in annual sales and an
EBITDA margin of more than 30% at its CMD on Nov. 21
    ** Three out of eight analysts rate Bachem "strong buy" or
"buy",​ with three at "hold" and two​ at "strong sell" or "sell"

($1 = 0.8634 Swiss francs)

 (Reporting by Tristan Veyet)
 ((Tristan.chabba@thomsonreuters.com))