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Bachem Group secures CHF 1 billion peptide supply contract

Business environment

11 January 2023

Bachem Group’s recent CHF 1 billion peptide supply deal, spanning over five years will enable the company’s plans to expand capacity across all its sites, including in its Vionnaz facility, in the canton of Valais.

Bachem is a Swiss biotechnology company that specializes in the development and manufacture of peptides and oligonucleotides. The company was founded in 1971 and and operates globally, with manufacturing sites in Switzerland, the United States and the United Kingdom. Bachem’s core business is the custom synthesis of peptides, including modified and labeled peptides, as well as active pharmaceutical ingredients (APIs).

Bachem has announced the signing of a further work order for the delivery of large volumes of peptides for a minimum total of CHF 1 billion over a five-year period from 2025-2029.

Thomas Meier, CEO of Bachem, said: “We are very pleased about this follow-up order and the renewed confidence in our work. Long-term collaborations are important for us and our partners: they enable us to reliably plan the development and utilization of production capacities. The revenues from this collaboration will help us meet our growth targets and strengthen our market leadership in peptides.”

Bachem is pursuing an investment program across all sites to expand capacity. A modern largescale facility for the manufacture of peptides and oligonucleotides with the potential to double the manufacturing capacity at the Bubendorf site. A new site in Switzerland is planned in Eiken (canton of Aargau) and is intended to further strengthen the production network from the end of the decade onward. Bachem is also investing into capacity expansion across its global manufacturing network at sites in Vionnaz (Switzerland), Torrance (USA), Vista (USA) and St. Helens (UK).

The canton of Valais, a global hub for chemical and pharma companies

Bachem’s facility in Vionnaz (canton of Valais) was founded in 1973, and aquired by Bachem in 2001. At this GMP site, both small organic molecules and generic API are produced. Bachem Vionnaz develops amino acid chemistry, electrochemistry, enzymatic reactions, chiral synthesis, Pyrogen-free production and high temperature reactions.

The canton of Valais is an attractive location for chemical companies for many reasons. It offers access to abundant and affordable hydraulic energy which is ideal for powering chemical manufacturing processes. This has been a major draw for pharmaceutical and chemical companies since the early 20th century and has led to the establishment of several international groups in the region, such as Bachem.