Siegfried: New Dinamiqs Lab in Zurich Strengthens Cell and Gene Therapy Capabilities

Narrow-moat Siegfried continues to track toward our expectations, and we maintain our fair value estimate of CHF 1,020 per share. Siegfried’s narrow economic moat rating is 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 contract development and manufacturing organization. We view the shares as currently fairly valued, trading in 3-star territory. We think investors should watch for a potential pullback in the shares since we have a positive long-term outlook for the firm, thanks to strong demand for outsourced drug manufacturing.