Bachem

Bachem Holding AG is a Swiss technology company active in the fields of chemistry, biochemistry and pharmaceuticals. It develops products and services for the pharmaceutical and biotechnology industry and research. Bachem is specialized in the commercial production of peptides and complex organic compounds as active pharmaceutical ingredients, in the production of peptide-based biochemicals and in the development of manufacturing processes for these compounds. Founded in 1971, the company is headquartered in Bubendorf, Canton Basel-Landschaft, Switzerland. In addition to the Bubendorf site, Bachem has another large production site in Switzerland in Vionnaz in the canton of Valais. Further production sites are located in the USA in the Californian cities of Vista and Torrance and in Great Britain in St Helens near Liverpool. An additional sales and distribution site is located in Tokyo (Japan). At the end of 2018, Bachem Holding AG had 1140 employees worldwide, generated sales of CHF 282.5 million and a net profit of CHF 46.6 million.

History

In 1971, Peter Grogg founded Bachem Feinchemikalien AG with two employees in Liestal near Basel with the focus on peptide synthesis. In 1977, Bachem moved with eight employees to nearby Bubendorf, and, in 1978, it manufactured, for the first time, peptides for use in medicine under cGMP guidelines. Between 1981 and 1991 Bachem tripled its production capacity and built an administration building, and in 1995, facilities were further expanded including the quality control department to a total of 168'000 sq. ft. (15'600 m2).

Expansion into markets outside Europe began with the establishment of Bachem Bioscience, Inc. in Philadelphia, USA in 1987. To strengthen its presence in Europe, Bachem opened sales and marketing centers in Germany in 1988 and in France in 1993. In 1996 it acquired its largest competitor, Bachem, Inc., together with its subsidiaries in Germany and the United Kingdom. In June 1998, following a very successful IPO, Bachem's shares began to be publicly traded on the Swiss Stock Exchange. In 1999 and 2000, a new administration building and a further production facility were respectively opened at the Bubendorf site.

With the acquisition of the San Carlos, California based Peninsula Laboratories, Inc. and its affiliate Peninsula Laboratories Ltd., United Kingdom in December 1999, Bachem extended its strong position in therapeutically active peptides into immunology, a domain with strong future promise. In August 2000, Peninsula Laboratories Europe Ltd. and Bachem (UK) Ltd. merged to a single Bachem group affiliated company in the United Kingdom.
The acquisition of Sochinaz SA, a Swiss-based specialized manufacturer of active pharmaceutical ingredients in 2001, strengthened Bachem's expertise and once again expanded its manufacturing capabilities.

Reorganization of distribution was carried out in Germany and France as a result of the positive experiences gained with the realignment of the sales and marketing organization in the USA. As a result, the subsidiary in France was closed at the end of 2002. The subsidiary in Germany was relocated from Heidelberg to Weil am Rhein, was renamed Bachem Distribution Services GmbH and is now responsible for all customers in the European Union.
In 2003, a holding structure was introduced to align the factual organization of the company with an appropriate legal structure and to support management structure adjustments, given by continued company growth requirements. In 2010, Bachem commenced the partnership with Atheris laboratories offering the Melusine® range of research products for lead generation of new pharmaceutical candidates. In 2011, Bachem celebrated its 40th year as a producer of research ingredients and active pharmaceutical ingredients (APIs) for the pharmaceutical industry.

In 2013, Bachem and GlyTech Inc. teamed up to offer glycosylated peptides in their product pipelines. Bachem and affiliate were conducting groundbreaking work on interferon beta-1a and to manufacture glycosylated somatostatin analogues by chemical synthesis.

In 2015, Bachem acquired American Peptide Company, a mid-sized biotech establishment in Sunnyvale CA, not far from Bachem's US facility in Torrance, expanding the firm's GMP manufacturing and R&D capabilities for the US and international markets.

Corporate Structure

Bachem Holding AG

The Bachem Group has a holding structure since 2003. The shares are listed on the SWX Swiss Exchange under the abbreviation BANB. A majority of the shares are held by company founder Peter Grogg.

Locations

From its headquarters in Bubendorf and its subsidiaries in Europe, the USA and Asia, Bachem operates worldwide. Bachem Holding AG currently consists of the following six locations:

Bachem Holding AG consists of the following divisions:

*Bubendorf, Switzerland: Headquarters of Bachem AG. Founded in 1971, production of peptides as active pharmaceutical ingredients and as chemicals for research.
*Vionnaz, Switzerland: Founded in 1973 and taken over by Bachem in 2001. Production of complex organic molecules as active pharmaceutical ingredients.
* St. Helens, Great Britain: Bachem UK Ltd Founded in 1992 and taken over by Bachem in 1999. Production of peptides as research chemicals and European competence center for immunological products.
* Torrance, California, USA: Bachem Americas, Inc. Founded in 1971 and acquired by Bachem in 1996. Production of peptides as active pharmaceutical ingredients and as research chemicals. Founded in 2007: Distribution company for all Bachem Group products in North, Central and South America.
*Vista, California, USA: Founded in 1987 and acquired through Bachem's acquisition of American Peptide Company in 2015. Development and production of active pharmaceutical ingredients.
*Tokyo, Japan: Founded in June 2018 as a sales office and local presence for Bachem Holding AG in Japan and Asia.

Business Development

No business development figures have been published for the period from the foundation of the company in 1971 to its IPO in 1998. In the year of the successful IPO in 1998, the Bachem Group's turnover was CHF 96 million. By 2001, sales had risen to CHF 141 million, also due to acquisitions. After a phase of stagnation until 2004 (sales of CHF 148 million), the Group has since gone through a rather stormy, non-acquisition-related growth phase. Between 2005 and 2007, well over 100 additional full-time positions and jobs were created. In Switzerland, the Bachem Group also trains 37 apprentices in various professions.

The share of sales generated in North America was 39.6% (2007). The rapid growth is primarily due to the sales growth of the Active Pharmaceutical Ingredients business unit. Detailed figures on the business development of the Bachem Group are published in semi-annual and annual reports.

In 2018, the Bachem Group (SIX: BANB) achieved record sales of CHF 282.5 million with a net profit of CHF 46.6 million (+11.7% net profit compared to the previous year; +79.6% compared to 2012). The operating result (EBIT) rose in 2018 by +8.3% compared with 2017 to CHF 54.8 million (+58.0% compared with 2012). The EBITDA margin reached 27.6% and the EBIT margin 19.4%. Due to the good business situation and high capacity utilization, Bachem created a total of 39 new jobs by the end of 2018. As at 31 December 2018, the Bachem Group employed a total of 1140 people in 1097 full-time positions.

Business Divisions

Bachem's business activities are divided into two divisions: Research Chemicals and Active Pharmaceutical Ingredients.

The range of research chemicals includes amino acid derivatives, resins and reagents for peptide production and organic synthesis, bioactive peptides, enzyme substrates and other biochemicals. Bachem manufactures most of the products itself and offers them in a web shop where several thousand products can be found. Custom research chemicals are produced by custom synthesis.

Customers for research chemicals are scientists at universities, hospitals and in the research laboratories of the biotech and pharmaceutical industries.

In its Active Pharmaceutical Ingredients division, Bachem offers a wide range of mostly peptidic active ingredients, which are used in clinical studies, in market-approved drugs or, with increasing importance, in cosmetics. A distinction is made between patent-free (generics) and patent-protected ( New Chemical Entities, NCEs) peptide pharmaceutical active ingredients. Typical examples of generic peptides are Calcitonin, Glucagon, Gonadorelin, Goserelin, Leuprolid, Somatostatin, Octreotide, Aviptadil, Desmopressin, Secretin, Sincalid, Thymosin, Oxytocin, Vasopressin.

The Bachem site in Vionnaz in the Swiss canton of Valais produces various non-peptidic generic active ingredients, including the widely used short-term anesthetic Propofol. In addition to such generic active ingredients, Bachem also offers process development and pharmaceutical active ingredients that are patented and may only be manufactured and used by the originator or a partner commissioned by the originator. In most cases, the collaboration is subject to a non-disclosure agreement. Many of these patented products are still in clinical trials.

The active pharmaceutical ingredients produced by Bachem are used in various therapeutic and diagnostic areas of human and veterinary medicine. Typical areas of application include cancer, osteoporosis, diabetes mellitus, Alzheimer's disease, nocturnal enuresis, hypoglycaemia, erectile dysfunction, cardiovascular diseases and diseases of the gastrointestinal tract.

Customers for active pharmaceutical ingredients are biotechnology companies, pharmaceutical and veterinary companies. Active ingredients account for the largest share of company sales. Current figures can be found in the annual report.

References

External links

* {{official website, http://www.bachem.com/

Biotechnology companies established in 1971
Biotechnology companies of Switzerland
Companies listed on the SIX Swiss Exchange