Lonza Announces Strategic Shift to Focus on CDMO Business, Exits Capsules & Health Ingredients

Strategic Shift:
Lonza is simplifying its organizational structure to focus on its core Contract Development and Manufacturing Organization (CDMO) business, exiting the Capsules & Health Ingredients (CHI) business at an appropriate time13.

New Structure: The CDMO business will be structured into three integrated business platforms:
Integrated Biologics, Advanced Synthesis, and Specialized Modalities, designed to enhance customer experience and provide scalability for future growth13.

Business Platforms:

Integrated Biologics:
Advances Lonza’s integrated offering, comprising Mammalian and Drug Product Services.

Advanced Synthesis:
Combines hybrid chemistry and biology solutions, including the former Small Molecules division and Bioconjugates.

Specialized Modalities:
Pioneers and scales cutting-edge technologies such as Cell & Gene Technologies, mRNA, Microbial, and Bioscience13.

Financial Outlook:

2024:
Flat CER sales growth and a CORE EBITDA margin in the high twenties (27-29%).

2025:
CER sales growth approaching 20%, including around half a billion CHF from the Vacaville site acquisition, and a CORE EBITDA margin approaching 30%13.

Growth Model:
The new CDMO Organic Growth Model aims to deliver low teens sales growth in CER on average over time, with CORE EBITDA growth ahead of sales growth13.

Sources:

1. https://www.lonza.com/news/2024-12-12-06-25

3. https://www.investorsinhealthcare.com/articles/category/news/switzerland-lonza-to-focus-on-cdmo-business-and-exit-capsules-health-ingredients/