Ypsomed Holding AG

Ypsomed reported sales of CHF 731 million for FY2025/26. Delivery systems contributed CHF 601 million, while Diabetes Care contributed CHF 75 million and the other segment CHF 56 million. Core delivery systems revenue grew 20% year over year from CHF 501 million to CHF 601 million, while project revenue was CHF 86 million versus CHF 88 million last year. EBIT was CHF 196 million versus CHF 113 million last year, implying a 33% margin; management had guided CHF 190 million to CHF 210 million. Operating cash flow was more than CHF 300 million, free cash flow was roughly CHF 280 million, and net debt to EBITDA was 0.8. For FY2026/27, management guided delivery systems growth of 12% to 15% on own devices and EBIT of CHF 210 million to CHF 230 million, with reported sales still around CHF 700 million including contract manufacturing phaseout effects. Long-term, it reiterated a sales ambition of CHF 0.9 billion to CHF 1.1 billion and EBIT of CHF 280 million to CHF 340 million by end of decade, with ROCE around 20%.

Simon Michel struck a highly upbeat, strategic tone, saying the company has delivered on targets, is now a pure-play business, and is focused on operational excellence. He emphasized that Ypsomed’s growth is supported by broad therapy-area exposure, a record 44 deals, and new recyclable platforms meant to extend the company’s patent protection into the 2040s. He also stressed localization, efficiency, AI, and the company’s ability to serve both auto-injector and pen formats as a major competitive advantage.

Samuel Kunzli focused on the financial transformation and cash generation. He cited CHF 731 million of sales, CHF 196 million of EBIT, more than CHF 300 million of operating cash flow, and roughly CHF 280 million of free cash flow, supported by CHF 307 million from the Diabetes Care divestment and CHF 150 million of share buybacks. He said growth CapEx was CHF 295 million in fixed assets and CHF 28 million in intangibles, with roughly CHF 1.3 billion expected to be spent over six years versus the original CHF 1.5 billion plan. He also said YpsoFit should deliver a low double-digit million benefit to the P&L over the next 3 to 5 years, and that the next-year EBIT margin should stay above 33%, with long-term ROCE around 20%.

Analysts pressed on the growth trajectory, the mix shift between pens and auto-injectors, YpsoFit benefits, and whether GLP-1 pills could reduce injectable demand. Management said the next year’s growth will be a bit slower before catching up, but still on a linear path toward the decade-end targets, and that no new deals have yet been signed on the 3 new platforms. On GLP-1s, they argued oral drugs expand the category rather than displace injections, and that Ypsomed’s unique ability to supply both device formats lets it follow whichever device originators and biosimilar companies choose. They also said Novo-related volumes are ramping but are not yet significant, while most current GLP-1 revenue is coming from other customers such as Chinese and global players.