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Investing.com -- BACHEM HOLDING AG (SIX:BANB) stock surged 8.5% on Thursday following the company’s announcement of significant progress in its capacity expansion plans in both Switzerland and the United States.
The peptide and oligonucleotide manufacturer reported that Building K in Bubendorf, Switzerland, has been inspected by local regulatory authorities with no expected delays to its development timeline. The company remains on track to begin production of the first GMP batches in 2025, with commercial production ramping up in 2026.
Additionally, Bachem revealed it has acquired a property adjacent to its existing facility in Vista, California, to support future capacity expansion in the U.S. market. The company plans to invest approximately $250 million between 2026 and 2030 to expand the Vista site and modernize its Torrance facility.
The Building K project represents one of the most modern peptide production facilities globally and will employ around 350 workers. Once fully operational, the facility will produce several tons of peptides annually for healthcare applications worldwide.
"I’m very pleased with the progress we are making at Bachem with our capacity expansions. We are right on schedule with Building K, which is not only the largest project for Bachem, but also one of the most modern peptide production facilities in the world," said Thomas Meier, CEO of Bachem.
The expansion in Vista will strengthen Bachem’s presence in the U.S., which the company described as "the world’s largest healthcare market," and enhance its commercial alliances in the country.