Lonza said on Thursday it plans to exit the capsules and health ingredients business, as the Swiss contract drugmaker faced a decline in demand for pharmaceutical supplies that had surged during the pandemic but has since dropped.
The move will take place at the appropriate time, with next steps to be determined in 2025, the Basel-based company said during an investor update.
The group will focus on the contract development and manufacturing organization (CDMO) business, Lonza said, as lacklustre demand for hard capsules for pills and lab equipment weighed on sales.
The CDMO business will be restructured into three business platforms, from previously three divisions and nine underlying businesses, it said.
Integrated Biologics business will comprise mammalian and drug product services, Advanced Synthesis will consist of the former small molecules division and bioconjugates, and Specialized Modalities will pioneer and scale new technologies including cell and gene technologies, mRNA, microbial and bioscience, Lonza said.
"This will allow us to achieve and maintain leadership across modalities with high therapeutic and commercial value, while pioneering the manufacturing technologies of the future," CEO Wolfgang Wienand said in a statement.
The new structure will be operational from the second quarter of 2025, Lonza said.
Lonza, which also produces monoclonal antibodies used in a new class of Alzheimer's drug, provided its outlook for 2025, excluding its CHI business.
It expects constant exchange rates sales growth to approach 20%, including a sales contribution of around 500 million Swiss francs ($565.74 million) from its Vacaville site acquisition, and core earnings before interest, tax, depreciation and amortisation (EBITDA) margin to approach 30% in 2025.
https://uk.finance.yahoo.com/news/lonza-exit-capsules-health-ingredients-061548069.html
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