Markus Blocher doesn't want to know anything about a factory in the USA

Markus Blocher, CEO and majority shareholder of the Aargau-based pharmaceutical supplier Dottikon ES, does good business with American customers. The son of former Federal Councilor Christoph Blocher also spent a year as an exchange student in the United States as a high school student and still fondly recounts his contacts with his high school colleagues.

But to this day, he still seems unable to warm to the idea of ​​Americans as workers, especially those working in production. "People in the USA aren't known for their watchmaking skills," Blocher said Wednesday at the annual press conference at the company headquarters in Dottikon. He also criticized the high turnover in many American companies, saying this also doesn't contribute to the quality of the work performed.

The chemical company, which produces active ingredients for pharmaceuticals, still operates solely at its headquarters. It now employs nearly 800 full-time employees there. However, due to the tariffs that US President Donald Trump has repeatedly threatened to impose specifically on pharmaceutical products, speculation has recently arisen that Blocher might be forced to set up a production facility in America.

In the media release for the past financial year (ending March 2025), the company made it clear: "The single-location strategy will be continued."

As Blocher added during his detailed, over-hour-long presentation on the annual results, Dottikon ES simply didn't have the time to respond quickly to the threatened tariffs with a new construction project. He recalled that initial considerations for the new multi-purpose production facility, which is now scheduled to be phased into operation in Dottikon by 2026, began over eight years ago.

Recently, this major project did n't go as planned because, according to Blocher, a Swiss engineering firm had inadequately prepared for commissioning. Dottikon ES terminated its contract with the firm and took over the work itself. "Since then, it's been running smoothly," the owner thundered, while admitting that it had been a rush job.

Blocher predicts that the new US administration's trade policy will cause significant economic damage, particularly in the form of rising inflation. The recession-resistant pharmaceutical market is also likely to be affected. If the US does indeed impose tariffs on pharmaceutical imports, industry estimates predict this will increase the final price of medicines by up to 8 percent. "American patients will pay the price," Blocher is convinced.

However, the head of Dottikon ES is relaxed about the development of his own business. He recently visited customers in the US, and they apparently assured him that they would remain loyal to him even after the introduction of tariffs. "We benefit," Blocher said, "from producing active ingredients for innovative medications. If we were operating as a supplier to generic drug manufacturers, the situation would be different."

According to its own information, Dottikon ES produces the active ingredients for 11 of the 200 highest-selling medications worldwide. This strong market position also benefited the contract manufacturer, which competes with dozens of other contract manufacturers, in the past fiscal year. After stagnating sales in the previous year, it returned to significant growth. Sales increased by 18 percent to CHF 385 million. Dottikon ES thus also demonstrated that the significant investments made in recent years in expanding production capacity at its headquarters are beginning to bear fruit.

Operating profit (EBIT) grew even more strongly than sales, increasing by 32 percent to CHF 118 million. The EBIT margin reached a record high of 30.7 percent.

"These are incredibly strong results, far exceeding our expectations," commented analysts at Zürcher Kantonalbank enthusiastically. Investors also seemed thrilled by the outstanding results. Dottikon ES's share price rose by over 18 percent to CHF 265 by early afternoon on Wednesday.

The jump in share price catapulted the company's market value to 3.7 billion Swiss francs. The main beneficiary is Markus Blocher himself, who still controls almost 65 percent of the capital.

The unusual concentration of power at this listed company is due to the fact that Blocher has not only headed the Group Executive Board for years, but also chairs the Board of Directors. Urs Brändli, who is retiring from the Executive Board due to age, is set to join the board. He, too, holds a doctorate in chemistry, like all three current Board members running for re-election. Diversity, as it is still preached in many other Swiss companies, seems to be a foreign concept to Blocher.