Company Reports

Narrow-moat Siegfried reported solid half-yearly results, highlighted by net sales of nearly CHF 620 million, representing growth of 3.5% versus the prior-year period. Siegfried is tracking our expectations, and we retain our fair value estimate of CHF 1,020 per share.

We are launching coverage of Siegfried Holding, a leading global contract development and manufacturing organization, or CDMO. We assign Siegfried a fair value estimate of CHF 1,020 and a narrow economic moat rating based on high customer switching costs, as the challenges associated with changing a drug's manufacturing process make customers unlikely to switch to a different CDMO.

Siegfried Holding is a leading, global contract development and manufacturing organization, or CDMO. Siegfried was founded over 150 years ago in 1873 as the first pharmacy wholesaler, and it has reinvented itself several times over its history and evolved into a global player with advanced manufacturing facilities and lengthy customer relationships. Siegfried's growth over the last 14 years has allowed it to become a leading CDMO. Since 2010, sales have quadrupled and the workforce has grown fivefold. The company has expanded from three manufacturing sites to 13 across seven countries, and this scale has allowed the company to further develop its contract manufacturing business.