CDMO Pulse Check: Lonza Posts Major Sales Rebound as Samsung Bio Keeps Revenue Growth Rolling
Lonza projects nearly 20% sales growth in its CDMO (Contract Development and Manufacturing Organization) business for 2025, reaffirming strong momentum1234.
The company's targeted core EBITDA margin is close to 30%, supported by robust commercial demand and high utilization, especially in early-stage CDMO services1234.
Key segment drivers include steady growth in Biologics (mammalian and bioconjugate platforms), strong performance in Small Molecules, and stable demand in Cell & Gene Therapy services34.
Lonza is expanding its global footprint, with new API and drug product facilities in Switzerland and expanded capsule production in India and China, supporting regional strategy1.
Excluding the lower-margin Vacaville site, Lonza forecasts low-teens sales growth (CER) in core CDMO business, with further profitability improvements expected34.
Capsules & Health Ingredients (CHI) division is rebounding, with anticipated low-to-mid-single-digit sales growth and margin improvements, and is targeted for divestment at an opportune time234.
Despite global economic uncertainties and discussion of new tariffs on pharmaceuticals, Lonza does not expect significant financial impact from these on its business, but is monitoring developments4.
Analyst sentiment remains bullish on Lonza, with consensus 'Buy' recommendations and a market capitalization exceeding $50 billion1.
Sources:
1. https://www.investing.com/news/transcripts/earnings-call-transcript-lonza-confirms-strong-2025-outlook-in-q1-2025-93CH-4036677
2. https://www.fiercepharma.com/manufacturing/lonza-reports-fy-24-earnings-slightly-lower-its-cdmo-momentum-builds
3. https://www.pharmamanufacturing.com/industry-news/news/55289260/lonza-affirms-2025-outlook-following-strong-q1-across-cdmo-and-chi-segments