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Lonza Group
Lonza Group
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Lonza Group AG is a Swiss multinational manufacturing company for the pharmaceutical, biotechnology and nutrition sectors, headquartered in Basel, with major facilities in Europe, North America and South Asia. Lonza was established under that name in the late 19th-century in Switzerland. The company provides product development services to the pharmaceutical and biologic industries, including custom manufacturing of biopharmaceuticals and detection systems and services for the bioscience sector.

Key Information

History

[edit]

Lonza was founded in 1897 in the small Swiss town of Gampel, situated in the canton of Valais, taking its name from the nearby river. In the course of the 20th century Lonza evolved from hydroelectricity and C2 chemistry, through nitrogen chemistry to petrochemistry before moving into fine chemistry and biochemistry.[2]

Initially, the company produced electricity. Lonza moved to neighbouring Visp (where it retains a production site today) in 1909. Competition from electric lighting reduced demand for calcium carbide and in 1915 Lonza started industrial production of calcium cyanamide which became popular as a cheap nitrogenous fertiliser, only to be supplanted by urea. In 1923, Lonza started to convert calcium carbide to metaldehyde (sold as a solid fuel under the brand 'Meta' and then slug repellant) via acetylene and acetaldehyde. In 1925, ammonia production was started, with a process licensed from Casale. With calcium cyanamide and calcium nitrate (made from nitric acid), Lonza commercialised formulated fertilisers starting in the 1930s. At the start of World War II, Lonza was contracted by the Swiss government to produce synthetic fuel, which it did by converting acetaldehyde to paraldehyde, used as an additive in transport fuel.[citation needed]

Lonza is involved in the manufacturing of biologics with several pharmaceutical companies. Lonza entered into a partnership with Teva in 2009 to develop and manufacture biosimilars. In 2010, they made a deal with GlaxoSmithKline to manufacture therapeutic monoclonal antibodies. In 2014, Lonza entered into an agreement with Bristol-Myers Squibb to manufacture two biologic drugs. Lonza also manufactures Imbruvica for Pharmacyclics and Mydicar for Celladon. In 2015, Lonza contracted with Alexion to construct a new facility dedicated to Alexion manufacturing. In 2017, Lonza and Sanofi partnered to construct a new facility for production of biologics.[3] Lonza entered into cell and gene therapy with the acquisition of Houston-based Vivante GMP Solutions in 2010.[4]

In November 2019, Chairman Albert Baehny became both chairman and interim CEO of Lonza after chief executive officer (CEO) Marc Funk left after 9 months.[5] In November 2020, Pierre-Alain Ruffieux commenced his role as Chief Executive Officer[6] which ended at the end of September 2023, totaling 2 years and 11 months in the position of CEO. Chairman Albert Baehny became again, both chairman and interim CEO, as from October 2023.[7]

In May 2020, Moderna struck a manufacturing deal with Lonza to produce its (mRNA-1273) COVID-19 vaccine active ingredient while expanding sterile production and fill-finish activities to 500 million doses starting in 2021.[8] Production of the mRNA bulk vaccine started in January 2021, soon after an official visit by Swiss Federal Councilor Alain Berset. Lonza Group was responsible for the global production of two-thirds of the raw materials for the Moderna vaccine at combined U.S. and Swiss facilities.[citation needed]

In May 2024, Jean-Marc Huët was elected Chairman following the retirement of Albert Baehny, who had held the position of Chairman and interim CEO.[9] In July 2024, Wolfgang Wienand commenced his role as CEO of Lonza.[10]

Business operations

[edit]

As of 2023, Lonza had over thirty development and manufacturing sites located in countries including Switzerland, the United States, the United Kingdom, Belgium, Spain, France, Mexico, Brazil, Japan, India, China and Singapore.[11]

The presence in India was established in Genome Valley, where ground was broken in 2011.[12][13][14] In 2018, Lonza opened a 300,000 square feet (28,000 m2) facility focused on cell and gene therapy in the United States in Pearland, Texas (a suburb of Houston).[15] In 2023, Lonza Group acquired Synaffix to strengthen its antibody-drug conjugate capacity.[16] In October 2024, the company completed the acquisition of the Genentech biologics manufacturing site in Vacaville, California, from Roche.[citation needed]

As of 2023, the company employed approximately 18,000 people across more than 30 locations.[17][18]

In 2024, Lonza announced plans to streamline its operations by exiting the capsules and health ingredients sector.[19] The decision follows a decrease in demand for pharmaceutical supplies after the COVID-19 pandemic. While the shift is expected to result in non-cash write-downs, analysts believe it will enhance Lonza’s growth prospects and financial stability.[20] The divestment process, targeting a segment responsible for 17% of the company’s 2023 revenue, will begin this year. Lonza intends to focus on its core business as a contract development and manufacturing organization (CDMO).[21] Notably, the company is the global leader in producing monoclonal antibodies, a key technology behind new Alzheimer’s treatments. Bernstein analyst Justin Smith praised the move as a step toward “operational simplification,” highlighting Lonza’s new business focus on three platforms: integrated biologics, advanced synthesis, and specialized modalities.[citation needed]

References

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Lonza Group

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Lonza Group Ltd is a Swiss multinational contract development and organization (CDMO) headquartered in , , specializing in end-to-end solutions for the pharmaceutical, , and sectors, including the development and production of biologics, small molecules, cell and gene therapies, active pharmaceutical ingredients, and health ingredients. Founded on October 27, 1897, as Elektrizitätswerk Lonza by Basel banker Alfons Ehinger to harness hydroelectric power from the River Lonza for electrochemical and electrometallurgical products, the company initially focused on production and power generation in the , with its first power station completed in 1898. Over the , Lonza expanded into specialty chemicals and pharmaceuticals, becoming a pioneer in the CDMO industry through innovations in technologies and strategic acquisitions, and celebrating its 125th anniversary in 2022 as a dedicated partner to the healthcare sector. As of April 1, 2025, Lonza's operations are structured under a simplified "One Lonza" organization comprising three integrated CDMO business platforms—Integrated Biologics, Advanced Synthesis, and Specialized Modalities—alongside the independent Capsules & Health Ingredients (CHI) division, which provides and solutions and is targeted for divestiture. The company operates more than 30 sites across five continents with approximately 19,000 employees, leveraging cutting-edge science, smart technology, and to support clients from early-stage discovery to commercial-scale production. In 2024, Lonza achieved sales of CHF 6.6 billion, with the CDMO business driving performance through segments including Biologics (CHF 3.7 billion), Small Molecules (CHF 1.0 billion), and Cell & Gene (CHF 0.7 billion), alongside CHI contributing CHF 1.1 billion. The first half of 2025 saw CDMO sales growth of 23.1% at constant exchange rates, reflecting robust demand in biopharmaceuticals and advanced therapies, while the full-year outlook for the CDMO segment is 20-21% CER sales growth (low-teens organic excluding specific project contributions such as Vacaville), as confirmed in October 2025.

Overview

Company profile

Lonza Group Ltd was founded in in Gampel, , initially as Elektrizitätswerk Lonza to harness hydroelectric power from the nearby River Lonza for the production of electrochemical products like , marking its origins in and basic chemicals before evolving into a global leader in and pharmaceuticals. Over the subsequent decades, the company diversified from power generation into fine chemicals and active pharmaceutical ingredients, ultimately establishing itself as a premier contract development and manufacturing organization (CDMO) in the healthcare sector. Headquartered in Basel, Switzerland, Lonza Group employs approximately 19,000 people worldwide as of 2025 and operates more than 30 sites across five continents. The company's shares are listed on the , where it is a component of the (SMI), and maintain a secondary listing on the (SGX). As a leading CDMO, Lonza provides end-to-end services to the pharmaceutical, biotechnology, and nutrition industries, supporting clients from early-stage and development through to commercial-scale and supply. This includes expertise in biologics, small molecules, cell and gene therapies, and advanced process technologies, enabling the transformation of therapeutic innovations into market-ready products. In the first half of 2025, Lonza reported sales of CHF 3.6 billion and CORE EBITDA of CHF 1.1 billion, reflecting robust 19.0% growth at constant exchange rates (CER), driven primarily by strong performance in its CDMO segment with 23.1% CER sales increase.

Strategic focus

In late 2024, Lonza Group unveiled its "One Lonza" strategy, aimed at transforming the company into a pure-play contract development and manufacturing organization (CDMO) through enhanced integration across its core offerings. This approach reorganizes operations into three unified business platforms: Integrated Biologics, which combines mammalian cell-based biologics and drug product services; Advanced Synthesis, focusing on and ; and Specialized Modalities, encompassing advanced therapies such as cell and therapies, mRNA, and other emerging modalities. By streamlining these areas, the strategy seeks to eliminate , improve execution efficiency, and provide end-to-end solutions for customer needs, with the new operating model fully implemented in April 2025. Central to the "One Lonza" strategy are key priorities in high-growth areas, including advancing cell and therapies through scalable platforms and expanding mRNA capabilities to support rapid development and of nucleic acid-based therapeutics. Lonza also emphasizes sustainable practices, such as reducing environmental impact via energy-efficient processes and responsible sourcing, to align with global regulatory and customer demands for greener operations. For 2025, the company has targeted 20-21% constant (CER) sales growth and a 30-31% CORE EBITDA margin specifically for its CDMO business, reflecting confidence in demand for these modalities amid a recovering biopharma market. To drive innovation, Lonza commits significant resources to , investing CHF 234 million in —exceeding CHF 200 million annually—to enhance technological capabilities and platform technologies. The company fosters strategic partnerships with biopharma firms and academic institutions to accelerate timelines, exemplified by collaborations on modular process intensification for faster tech transfers in advanced therapies. A pivotal strategic shift supporting this focus occurred in December 2024, when Lonza announced the divestment of its non-core Capsules and Health Ingredients (CHI) business, which had underperformed due to market softness in consumer health products. This move allows Lonza to concentrate resources exclusively on its CDMO operations, enhancing agility and profitability in biologics and specialty modalities.

History

Founding and early development

Lonza Group traces its origins to October 27, 1897, when it was established as Elektrizitätswerk Lonza, a with a of CHF 800,000 (equivalent to approximately CHF 27 million today). Founded by Basel banker Alfons Ehinger and a group of investors, the company aimed to exploit the abundant hydroelectric potential of the Lonza River in the for electrochemical and electrometallurgical production. Ehinger served as the first president until his death in 1903. The venture was driven by the growing demand for electricity-intensive processes in the late , positioning Lonza at the intersection of energy generation and industrial chemistry. Construction of the initial infrastructure began promptly, with the Gampel 1 power station completed in 1898, enabling the launch of production that same year using furnaces. , a key initial product, was primarily used to generate gas for applications, capitalizing on the era's shift from oil lamps. A second power station, Gampel 2, followed in 1900 to support expanded operations. However, the early years were marked by significant challenges, including delayed equipment deliveries, furnace explosions, flooding from the river, and low initial yields. Market volatility further compounded difficulties, as a speculative bubble in carbide prices burst in 1902, leading to a sharp decline in demand due to the rise of . Despite these setbacks, Lonza relocated its production facilities to in 1908–1909 for better access to resources and began integrating and processes to produce synthetic fertilizers from . World War I prompted further diversification amid supply disruptions and wartime needs. Facing a volatile market, Lonza opened an plant to derive higher-value organic chemicals from its core product, reducing reliance on lighting applications. A pivotal milestone came in 1915 with the development of industrial-scale production of , a -fixing compound created by reacting with , which served as an early synthetic and addressed agricultural demands strained by the war. Post-war recovery in the involved stabilizing operations through chemistry innovations; the company began producing and derivatives in 1920 and opened a large quarry near Leuk in the late to secure raw materials for . By 1927, production for was underway, solidifying Lonza's role in the chemical sector. The 1930s brought economic hardship from the , with Swiss industrial output dropping by 20% between 1929 and 1932, forcing Lonza to navigate reduced demand and financial pressures. Nonetheless, the company persisted in refining its processes, commercializing formulated fertilizers and advancing toward fine chemicals. These foundational efforts in basic chemicals and set the stage for later expansions into pharmaceuticals and in the mid-20th century.

Expansion and diversification

In the 1960s, Lonza expanded its chemical operations beyond electrochemical products into fine chemicals and intermediates, marking its entry into the production of vitamins and active pharmaceutical ingredients (APIs). A key milestone was the 1965 establishment of Teranol AG, a joint venture with DSM Nutritional Products, to manufacture vitamin A and vitamin E at the Visp site in Switzerland. This collaboration leveraged Visp's growing infrastructure, where Lonza initiated major construction projects during the decade to transform the facility into a central hub for chemical synthesis and production. The and saw Lonza's international footprint grow, particularly in the , with the opening of key sites to support its emerging contract development and manufacturing organization (CDMO) services. Lonza launched early CDMO offerings in the , becoming one of the first companies to provide custom manufacturing for APIs following the opening of a dedicated fine chemicals complex in . In the , expansions included the establishment of a biologics manufacturing facility in , in 1996, enhancing capabilities for development and production. A pivotal corporate restructuring occurred in 1999, when Lonza was spun off from the Alusuisse-Lonza Group to form Lonza Group Ltd., a move designed to streamline operations and enable strategic mergers in the chemicals and life sciences sectors. This independence facilitated diversification in the , including the acquisition of Cambrex Corporation's Bioproducts and Biopharma subsidiaries for $460 million, which bolstered Lonza's biotech expertise and led to the formal establishment of its division. These efforts solidified Lonza's shift toward specialized systems and sustained its emphasis on CDMO as a core growth area.

Recent milestones and transformations

In the 2010s, Lonza expanded its capabilities in cell and gene therapy through the acquisition of Vivante GMP Solutions in Houston, Texas, in 2010, marking its entry into this emerging field. This move positioned Lonza to support the growing demand for advanced therapeutic manufacturing. Later in the decade, Lonza significantly broadened its portfolio in oral drug delivery by acquiring Capsugel from KKR & Co. for USD 5.5 billion in 2017, integrating expertise in capsules and health ingredients to create synergies across its operations. The accelerated Lonza's role in global health responses, particularly through a 10-year strategic collaboration with announced in May 2020 to manufacture lipid nanoparticles for the mRNA-1273 vaccine. This enabled rapid scaling of production, with Lonza delivering the first commercial batches in the U.S. by late 2020 and subsequently doubling capacity in , , in 2021 to meet surging demand. Amid these efforts, Lonza began streamlining its non-core assets, divesting its Specialty Ingredients business to and for CHF 4.2 billion in July 2021 to sharpen focus on contract development and manufacturing organization (CDMO) services. In parallel, Lonza exited parts of the market by selling two specialized sites in Ploermel, , and , , to NextPharma in 2021. Entering the 2020s, Lonza pursued further biologics expansion with the USD 1.2 billion acquisition of Genentech's large-scale manufacturing facility in , from , completed in October 2024, adding approximately 330,000 liters of capacity to its network. Leadership transitioned with the appointment of Wolfgang Wienand as CEO in July 2024, succeeding interim leader Albert M. Baehny, to drive strategic priorities. In December 2024, Lonza announced plans to exit its Capsules & Health Ingredients (CHI) business, aiming to divest it in 2025 to concentrate resources on high-growth CDMO segments. These transformations culminated in the implementation of a simplified "One Lonza" effective April 1, 2025, which restructured the organization into three CDMO platforms—Integrated Biologics, Advanced Synthesis, and Specialized Modalities—to enhance efficiency and customer focus. This shift supported robust performance, with Lonza confirming an outlook of 20-21% sales growth in its CDMO business for the full year 2025 amid a recovering biotech sector, as per its Q3 2025 update.

Business operations

CDMO segments

Lonza's contract development and manufacturing organization (CDMO) operations are organized into three primary platforms under the "One Lonza" structure implemented on April 1, 2025: Integrated Biologics, Advanced Synthesis, and Specialized Modalities. These segments provide end-to-end services from early development to commercial manufacturing, supporting pharmaceutical and biotech clients in advancing therapies across various modalities. The Integrated Biologics segment focuses on mammalian cell line development, process optimization, and commercial-scale production of biologics such as monoclonal antibodies and recombinant proteins. It offers comprehensive services from preclinical stages through to drug substance and drug product , leveraging integrated mammalian and parenteral drug product capabilities to streamline client workflows. This platform emphasizes efficiency in large-scale bioprocessing to meet demand for complex biologics. The Advanced Synthesis segment specializes in the development and GMP manufacturing of active pharmaceutical ingredients (APIs), peptides, and , spanning from laboratory-scale synthesis to full commercial production. Drawing on over 125 years of chemical expertise, it supports hybrid chemistry and solutions for highly potent and complex molecules, including route scouting and process optimization to accelerate timelines. The Specialized Modalities segment pioneers scalable manufacturing for emerging therapies, including cell and gene therapies, viral vectors, mRNA, and bioconjugates, with a focus on modular platforms to facilitate rapid and customization. It integrates cell and gene technologies, microbial systems, and bioscience tools to address challenges in advanced modalities, enabling clients to advance innovative treatments from clinical trials to market. In the first half of 2025, Lonza's CDMO segments accounted for approximately 85% of the company's total sales of CHF 3.58 billion, equivalent to about CHF 3.1 billion in revenue, underscoring their central role in driving overall performance.

Key technologies and capabilities

Lonza's biologics technologies include the GS Xceed® Gene Expression System, a fully integrated and scalable mammalian platform designed for the expression of a diverse range of biologic drugs, including monoclonal antibodies and complex proteins. This system, launched in 2012, utilizes (GS) integration to enhance productivity and has demonstrated the ability to reduce cell line development timelines by up to six weeks compared to traditional CHOK1SV-based methods. Complementing this, the Cocoon® Platform provides automated, closed, and flexible manufacturing for cell therapies, streamlining processes from cell isolation to genetic modification and expansion to improve efficiency and reliability in clinical-scale production. In synthesis capabilities, Lonza employs flow chemistry for production, enabling continuous processing that accelerates , enhances safety by minimizing handling of hazardous intermediates, and ensures consistent quality through precise control of reaction parameters. For sustainable active pharmaceutical ingredient () production, Lonza leverages biocatalysis, a approach it pioneered since entering the field in 1983, to facilitate enzymatic transformations that reduce environmental impact and enable efficient synthesis of complex molecules, as exemplified in large-scale processes for compounds like nicotinic acid. Lonza's specialized technologies encompass the LVV platform for , supporting both adherent and suspension-based production with high titers and scalability via the proprietary Xcite® Lenti transient system, which eliminates the need for cell line development transitions. In mRNA applications, Lonza offers lipid (LNP) formulation services that encapsulate mRNA in an integrated process, protecting payloads from degradation and facilitating targeted delivery while complying with cGMP standards. Additionally, Lonza provides expertise in antibody-drug conjugates (ADCs), covering the full workflow from production and payload synthesis to and sterile fill-finish, enabling precise drug-antibody linking for targeted cancer therapies. In February 2026, Lonza announced enhancements to its advanced synthesis capabilities for bioconjugates, including the full integration of the ADC technology platform acquired from Synaffix in 2023, incorporating GlycoConnect®, HydraSpace®, and toxSYN® to improve ADC efficacy and tolerability. The platform has been expanded to include dual-payload ADC technology, enabling the precise attachment of two complementary cytotoxic agents to a single antibody with controllable payload ratios to address tumor heterogeneity and drug-induced resistance. Furthermore, Lonza expanded its Oss, Netherlands site with increased laboratory infrastructure to support broader R&D for ADCs and emerging bioconjugate modalities (such as antibody-oligonucleotide conjugates, targeted lipid nanoparticles, and protein-protein conjugates), rapid small-scale prototyping, scale-up for pilot toxicology material, and on-site process and analytical development. Lonza's innovation pipeline features investments in AI-driven process analytics, such as the AI-Enabled Route Scouting Service, which combines computer-aided synthesis planning with Lonza's expertise to identify optimal synthetic routes, predict outcomes, and streamline for complex APIs. These efforts integrate with continuous manufacturing advancements, including flow-based systems that reduce development timelines by enabling faster iteration and scale-up, supporting overall efficiency gains of up to 30% in process optimization.

Global manufacturing network

Lonza Group's global manufacturing network comprises more than 30 development and manufacturing sites across five continents, enabling the company to support contract development and manufacturing organization (CDMO) operations for pharmaceutical and biotech clients worldwide. This extensive infrastructure facilitates end-to-end services from early development to commercial-scale production, with a strategic emphasis on geographic diversification to mitigate risks and serve diverse markets. The network's scale allows Lonza to handle complex supply chains for biologics, small molecules, and advanced therapies, ensuring reliable delivery amid global demands. Key facilities anchor the network in strategic locations, each tailored to specific CDMO needs. In Visp, Switzerland, the largest site in the global network serves as a hub for active pharmaceutical ingredient (API) synthesis and small molecule manufacturing, producing highly potent APIs, peptides, bioconjugates, and both mammalian and microbial biopharmaceuticals under cGMP conditions. Portsmouth, New Hampshire, USA, focuses on biologics scale-up and commercial production, featuring cGMP-compliant assets including a 20,000-liter bioreactor for mid- to large-scale biopharmaceutical manufacturing. In Stein, Switzerland, the site supports early-phase drug product development and fill-finish operations for biologics, with ongoing expansions enhancing capabilities for sterile manufacturing. Houston, Texas, USA, acts as the U.S. center of excellence for cell and gene therapy process development, encompassing a 300,000-square-foot facility dedicated to viral vectors and advanced modalities. In Oss, Netherlands, the site has undergone expansion in laboratory infrastructure and R&D capacity as part of the 2026 strengthening of Advanced Synthesis capabilities, enhancing support for early-phase bioconjugate development including antibody-drug conjugates (ADCs) and other novel modalities through rapid prototyping, process development, and scale-up for clinical stages. Recent expansions have bolstered the network's capacity, particularly in high-demand areas. The 2024 acquisition of the , USA, site from added significant biologics manufacturing infrastructure, including a total bioreactor capacity of approximately 330,000 liters across 19 units, with planned CHF 500 million investments to upgrade for late-stage clinical and commercial mammalian production. In , expansions since 2021 have enhanced mammalian development services and capabilities at the facility, positioning the site to address market growth. All sites maintain cGMP compliance to meet regulatory standards, with capacities routinely exceeding 20,000 liters at multiple locations to support large-scale operations. The network's regional distribution optimizes operations: Europe, particularly Switzerland, emphasizes research and development alongside API and drug product expertise; North America prioritizes commercial manufacturing for biologics and cell therapies to serve the largest pharmaceutical market; and Asia targets emerging markets through facilities like Singapore, enhancing proximity for regional clients. Post-COVID, Lonza's supply chain demonstrated resilience by maintaining operational continuity across sites despite global shortages of single-use components and logistical disruptions, ensuring uninterrupted CDMO support through diversified sourcing and contingency planning. The Portsmouth facility, for instance, was integrated via a 2011 acquisition that expanded U.S. biologics capabilities.

Corporate affairs

Leadership and governance

Lonza Group's leadership is headed by Wolfgang Wienand, who assumed the role in July 2024 following his tenure as CEO of Holding AG, a Swiss contract development and organization in the pharmaceutical sector. Wienand's background in pharmaceutical contract aligns with Lonza's focus on biologics and small molecules. The Executive Committee, appointed by the , comprises ten members responsible for managing global operations and implementing strategic policies. It includes heads of key CDMO segments such as Gordon Bates for Integrated Biologics, Christian Seufert for Advanced Synthesis, and Daniel Palmacci for Specialized Modalities, alongside Jason Berndt as Head of Group Operations since October 2025 and other functional leaders like Philippe Deecke. The Board of Directors consists of ten members, chaired by Jean-Marc Huët since May 2024, with Jürgen Steinemann serving as Vice-Chair. The board emphasizes sustainability and ethical oversight, with members including Christoph Mäder as Lead Independent Director, and recent additions such as Juan Andres, Eric Drapé, and David Meline elected in May 2025. Diversity is a priority in board composition, featuring representatives like Marion Helmes, Angelica Kohlmann, and Barbara Richmond. Lonza's governance framework adheres to Swiss corporate law and the SIX Swiss Exchange's Directive on Information relating to , structured around the , Executive Committee, and specialized committees. Key committees include the Audit and Compliance Committee, Nomination and Committee, Remuneration Committee, and Strategy Innovation Committee, which oversee , , and strategic direction. In 2024, enhancements to ESG reporting were implemented, including improved alignment with UN and an increased EcoVadis ESG rating, reflecting stronger transparency in environmental and social impacts. Key governance policies include robust anti-corruption measures compliant with global laws such as the U.S. and the Bribery Act, enforced through training and monitoring programs. Stakeholder engagement practices involve regular dialogues with investors, customers, and communities, integrated into the "One Lonza" strategy to foster a unified and long-term value creation across operations.

Financial performance and sustainability

Lonza Group demonstrated robust financial performance in the first half of 2025, reporting sales of CHF 3.6 billion, reflecting a constant (CER) growth of 19.0% compared to the prior year period. This growth was primarily driven by strong in its Contract Development and Manufacturing Organization (CDMO) segment, with CORE EBITDA reaching CHF 1.1 billion and achieving a margin of 30.6%. For the full year 2025, Lonza upgraded its outlook for the CDMO business to CER sales growth of 20-21% and a CORE EBITDA margin of 30-31%, underscoring confidence in sustained momentum amid expanding pipelines. Historically, Lonza's financial strategy has focused on streamlining operations through divestments, notably the announced exit from its Capsules and Health Ingredients (CHI) business in late 2024, which represented approximately 17% of 2023 sales. Post-divestment, the CDMO segment is expected to account for over 90% of revenue, enhancing focus on high-growth areas like biologics and cell & therapies. These moves have supported debt reduction efforts, with the net debt to CORE EBITDA ratio improving to 1.5x by the end of 2024, well below the target of under 2x, bolstering financial flexibility for investments in capacity expansion. In parallel, Lonza has advanced its initiatives as a core component of corporate responsibility, committing to net-zero by 2050 while targeting a 42% reduction in absolute Scope 1 and 2 emissions by 2030 from a 2021 baseline. The company has integrated water efficiency projects across sites, including ongoing efforts at its facility in to optimize resource use in line with 2030 goals for reduced water intensity. Biodiversity initiatives are embedded in environmental strategies, with site-specific actions in supporting local ecosystems, though detailed projects in the remain part of broader regional commitments. ESG performance saw notable progress in 2024, with an EcoVadis rating increase of six points, elevating the company to a status through improvements in , environment, and . Key risk factors for Lonza include dependencies, particularly in raw materials and capacity constraints for biologics , which could impact delivery timelines in the biotech sector. Additionally, stringent requirements in production pose ongoing challenges, necessitating robust quality to mitigate potential disruptions.

References

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  53. https://www.lonza.com/about-us/leadership/board-of-directors
  54. https://www.lonza.com/news/2025-05-09-16-30
  55. https://www.lonza.com/about-us/leadership/board-committees
  56. https://www.lonza.com/investor-relations/ethics-and-compliance
  57. https://www.lonza.com/sustainability/compliance-integrity
  58. https://www.lonza.com/investor-relations/~/media/EFCA30B6FC7D49ABBD22E0828BB5B52A
  59. https://ditchcarbon.com/organizations/lonza
  60. https://www.lonza.com/annualreport/2023/documents/Lonza_2023_Sustainability_Report.pdf
  61. https://www.lonza.com/sustainability/environment
  62. https://www.lonza.com/annualreport/2024/sustainability
  63. https://dcfmodeling.com/blogs/health/0qnol-financial-health
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