Ypsomed: Share price slump vs. billion-euro plans

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  Christian Ingerl
  Redaktor

In Ypsomed‘s production halls in Burgdorf, Switzerland, the machines run in sync, manufacturing precision components for modern injection systems. Outside the factory gates, or more precisely on the stock market, sceptical views were on the rise. First, Novo Nordisk, the specialist in insulin syringes, revised its outlook for the year as a whole, then the research firm BNP Paribas gave it the thumbs down, and finally, US President Donald Trump has now set his sights on the medical technology industry. The small-cap stock lost around CHF 100, or a quarter of its market capitalisation, within around six weeks.
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Indispensable products

The company operates in a growth market. Since the sale of the diabetes business, Ypsomed has specialized entirely in injection systems for the subcutaneous administration of liquid medications. Auto-injectors, pen systems and injection needles form the heart of the business model. They are indispensable for the pharmaceutical industry, as the growing number of biotechnological drugs, for example against autoimmune diseases or cancer, is increasing demand.

The current financial year shows that Ypsomed is making progress on this path: sales and profitability are increasing, driven by contracts with major pharmaceutical partners and the continuing trend towards self-medication. At the same time, the company is investing heavily in its production base. In line with the “local for local” principle, capacities are being created close to the most important markets – from Europe to Asia and North America. The aim is to make supply chains more stable and customer relationships closer.

Medium-term goals

At the most recent capital market day, the injection system specialist set out the horizon up to 2029/30: management is targeting sales of between CHF 0.9 and 1.1 billion and an operating result (EBIT) of between CHF 280 and 340 million. This target range underlines the company’s confidence in growth markets and its own innovative strength. The pending US plans will be announced in October and could become a decisive catalyst.

Until then, Ypsomed’s story remains divided: Short-term skepticism prevails on the stock market, while the company is determined to shape the future in the long term. A look behind the scenes reveals a business model with a clear focus – and the ambition to reach a new order of magnitude by the end of the decade. Even if the share will find it difficult to reach new dimensions in the short term, there is every chance of a rebound after the dramatic fall in the share price – especially in view of the upcoming plans overseas.

Investment solutions

Courageous investors could see a potential turnaround with the Mini Future YPSAXU from UBS into disproportionately high profits. The multiplier is 4.7, the knock-out is at CHF 263.6365 and thus a good 16% away. In the event that the MedTech share corrects further, the short mini future MYPART from Leonteq would be in demand. The security offers leverage of 3.6 with a distance to the stop loss of 21.8%.

In the event of a bottom formation, the Barrier Reverse Convertible RYPAAV from Bank Vontobel would come into play. The product offers the prospect of a sideways yield of 8.0% p.a. with a solid buffer of 29.1%. The term ends on July 24, 2026.