Why invest in BRAIN Biotech AG?

We have been pursuing a growth strategy for several years. We aim to establish BRAIN Biotech as one of the top ten enzyme companies on the global market.

We plan to almost double revenue in the BRAINBiocatalysts* segment to a level of € 100 million in the medium term, while at the same time boosting the adjusted EBITDA margin. We are aiming for an adjusted EBITDA margin of 15 % within the next five years.

The integrated product business in the BRAINBiocatalysts segment is the Group’s primary growth segment. We have already invested heavily in expanding production capacities at our sites in recent years.

Our growth strategy is geographically focused on Europe and North America and combines organic growth with targeted, value-enhancing acquisitions. We have identified an addressable target market that offers structural growth and a revenue volume of around € 2 billion.

Having realized significant investments over the past few years, we have now accelerated the commercialization of projects from the BRAINBioIncubator. Investments in highly efficient production strains and in our own genome editing technology are already leading to greater license income in our business with customized client solutions.

We are constantly working on even more closely integrating BRAIN Biotech Group companies, on realizing synergies, on expanding the product portfolio and on enhancing efficiency. We have already achieved good results in this area in recent years, and we expect that the growth rate of adjusted EBITDA will continue to outstrip our revenue growth rate in the future.

* New segment reporting from 3M 2024/25: The new BRAINBiocatalysts segment is a combination of the former BioProducts segment and the R&D services of BioScience Zwingenberg (Contract Research Organization – CRO)

As a leading integrated supplier of high-quality enzymes for special applications and innovative biotechnological solutions, we support industry in making products more natural and processes more efficient and sustainable. We are focusing on areas that offer structural growth: Nutrition, Life Sciences and the Environment.

Our business models:

• Product business with enzyme products and ingredients
• Contract research and development (Contract Research Organization, CRO)
• Contract Development Manufacturing Organization (CDMO).

The main drivers of this structural growth:

• Growing world population with rising demand for non-animal protein sources
• Trend towards healthier and more natural diets
• Biotechnologically produced active pharmaceutical ingredients (APIs)
• Search for alternatives to petrochemical process chains.

Our four focus areas:

• Alternative proteins that replace animal proteins: for animal welfare, vegan food and a more sustainable diet for a growing world population.
   
• Biotechnology for more natural and sustainable food: for industrially produced food without chemical additives, and with improved flavor profiles, more pleasant textures, longer shelf life and better appearance.
   
• Biotechnology for life sciences applications: enzymes for the production of pharmaceuticals through biocatalysis or for use in diagnostics.
   
• Biotechnology for environmental protection: natural antimicrobials for longer food shelf life; to utilize food industry side-streams; to boost production yields; to reduce energy and water consumption or avoid waste; for biorecycling processes.

Our Group of companies is a hotbed of innovation and we are constantly working to push the boundaries of what is possible: towards optimized special enzymes, high-performance production organisms and highly efficient fermentation processes.

We offer an integrated service for specialty enzymes

Since it was founded in 1993, BRAIN Biotech has developed from a specialized R&D company into a provider of integrated solutions. Today, we cover the entire specialty enzyme value chain: we find and develop previously undiscovered enzymes, provide starter cultures for their microbial production and develop intelligent bioprocesses for industrial-scale production. This comprehensive service is not only a competitive advantage for us, but also for our customers.

We combine a broad product portfolio with a comprehensive technology portfolio

With around 600 products, our product portfolio offers an extensive selection of enzymes and ingredients. We also offer our clients customized innovative products and solutions. We do not limit ourselves to individual technologies and methods, as many other biotechnology companies do. Instead, we make sensible choices from our broad tech portfolio.

Our interdisciplinary approach encompassing various scientific disciplines also helps us to develop innovative products and biological solutions. With the help of bioinformatics, our proprietary MetXtra™ database and AI-supported predictive models, we are advancing the discovery and optimization of previously unused enzymes – not only to benefit our customers but also to expand our own product portfolio.

We are a reliable and valued partner

Over 200 successfully completed development projects with industrial partners confirm our expertise. Returning customers reflect confidence in our ability to provide solutions and to innovate.

Attractive business models

The Group-wide technology platform forms the basis for three attractive business models:

Products: Specialty enzymes, microorganisms (starter cultures) and ingredients for food, life sciences and environmental technology.

Contract research: Customized solutions, from enzyme engineering, production strain and bioprocess development through to screening for bioactive substances.

Contract manufacturing: Production of enzymes and other proteins; services with a focus on the life sciences industry.

With this integrated approach, we support our customers on their path to sustainable growth and establish a clear competitive advantage for BRAIN Biotech.

The BRAINBioIncubator encompasses a pipeline of research-intensive development projects that offer high value creation potential. We have started to transition the high investments that we have realized over recent years into the commercialization phase. Examples:

1. In the 2023/24 financial year, BRAIN Biotech concluded an agreement with Royalty Pharma for the monetization of the licensing rights to the investigational compound Deucrictibant for an amount of up to € 128.88 million. BRAIN has already received an advance payment of € 18.41 million for this agreement. In addition, the company may receive potential regulatory milestone payments of up to € 18.42 million as well as additional potential long-term revenue-related milestone payments of up to € 92.05 million.
    
2. In the 2024/25 financial year, BRAIN Biotech arranged an exclusive technology licensing agreement with Akribion Therapeutics GmbH for the genome editing nuclease G-dase® E for the pharmaceutical sector. BRAIN Biotech will receive up to € 92.3 million in R&D milestone payments from Akribion for granting these exclusive rights for use in the pharmaceutical area. Moreover, BRAIN Biotech is entitled to license fees from future net revenues. The payment structure is based on progress in clinical development and future commercialization successes.
    
3. BRAIN Biotech has entered into an agreement with Corbion, a global sustainable ingredients company, to collaborate on the development of novel bio-based antimicrobial compounds and their derivatives. BRAIN Biotech is contributing its technological expertise to the partnership. BRAIN is also acting as a technology licensor.
    
4. Further promising projects: BioGoldTM from recycled materials, natural sugar substitutes, enzymatic wound cleansing with Aurase® (developed by SolasCure).

Industrial biotechnology has become an important driver of innovation and sustainability in the global economy. People are already referring to the dawning of an “era of biology”, as industrial biotechnology enjoys the potential to transform traditional industries into more sustainable and environmentally responsible companies. BRAIN Biotech develops products and solutions for its customers that directly address six of the twelve UN Sustainable Development Goals.

In recent years, industrial biotechnology, with its goal of using biological processes and organisms to produce goods and services, has already achieved considerable growth. The volume of the biotechnology market was estimated at USD 1.38 trillion in 2023 and is expected to expand to USD 3.90 trillion by 2031, which corresponds to an average annual growth rate of 13.9 % over the forecast period (2024 – 2031). *

We enable companies from the food, life sciences and environmental sectors to reduce their greenhouse gas emissions, reduce their dependence on non-renewable resources and boost their contribution to a more sustainable global economy. The integration of our biotechnological solutions in manufacturing processes can also lead to significant cost savings and productivity enhancements for our partners.

We develop products and solutions for our customers that directly address the following UN Sustainable Development Goals: 2, 3, 6, 9, 12 and 13. Both our own development projects and those we pursue with partners as well as our products are aimed at solutions that lead to a better, healthier and more sustainable life.

Some highlights from recent years:

• Extensive product portfolio of enzymes and microorganisms for production using biological processes.
• Highly efficient production strains for the manufacturing process in bioreactors (“biofactories”).
• Proprietary genetic engineering tools for targeted DNA/RNA modification for precision fermentation.
• Identification and development of new nature-based sweeteners, flavor enhancers and texturizers.
• Recycling of gold and further precious metals from waste streams (computer scrap, slag and other waste of mineral origin): biological extraction processes replace conventional chemical processes.
• Battery recycling: biological processes for recycling precious metals and lithium.
• Enzymatic cleansing of chronic wounds: painful and higher-risk methods can be bypassed; the spin-out in 2018 of SolasCure Ltd to conduct clinical trials and the pharmaceutical approval process.
• Circular economy processes where production by-products are turned into new raw materials: carbon dioxide as a raw material for chemicals, nature-based antioxidants and fermented foods.

See also “Initial ESG and sustainability report of BRAIN Biotech AG” at https://www.brain-biotech-group.com/en/sustainability-esg/sustainability-report-esg-data-sheet/ on the company website.

* Source: Global Biotechnology Market, 2024 https://www.skyquestt.com/report/biotechnology-market