Siegfried Earnings: Healthy Outlook for 2025 as Strong Outsourcing Demand Supports Growth

Siegfried reported solid year-end results in line with our expectations, highlighted by net sales of nearly CHF 1.29 billion, representing growth of 3.5% compared with the prior-year period. Drug substances accounted for nearly 70% of overall revenue and grew 4.5% from the prior-year period, which offset the impact of destocking. Drug products reported growth in line with the prior year, despite the phasing out of significant vaccine sales in 2024, which demonstrates healthy demand for Siegfried’s outsourced services even with these vaccine challenges. Siegfried is tracking our expectations, and we maintain our fair value estimate of CHF 1,020. We view shares as currently fairly valued, trading in 3-star territory.