JAN / FEB 2025
Lonza to simplify structure
Lonza has shared detail of its strategy and new organisational structure at its 2024 investor update . This involves becoming a pure-play CDMO business with three integrated business platforms , as well as exiting from the Capsules & Health Ingredients ( CHI ) business .
The ‘ One Lonza ’ set-up is based around four key initiatives : focusing on the CDMO business , reshaping the operating model , elevating execution in manufacturing and engineering , and expanding through “ an impartial approach to buy and build ”. The stated aim is to “ enhance customer experience , provide scalability for future growth and strengthen Lonza ’ s multi-modality offering ”.
The current layer of nine business units will be removed and the three business platforms will directly manage multiple technology platforms from Q2 2025 :
• Integrated Biologics , comprising the former Mammalian and Drug Product Services units
• Advanced Synthesis , combining the former Small Molecules division and Bioconjugates
maintain its product lines under the same brand name but “ with a modified identity infused with elements of Eternis ”, the two companies said .
“ Our combined manufacturing and distribution footprints across India , Europe , Asia and US will offer a robust supply chain . Further , this partnership will enable us to reach Asia-Pacific with personal care products ,” commented Naama Eylon , who will remain CEO of the Sharon business .
Mumbai-based Eternis has four aroma chemical facilities in
• Specialised Modalities , made up of the Cell & Gene Technologies , mRNA , Microbial and Bioscience units “ The new organisational structure will further enable Lonza to capture growth opportunities through the empowerment of key group functions and improved execution capabilities , including a unified go-to-market approach and an increased focus on excellence in asset construction and operation ,” the company said .
The next steps in the sale of the CHI business will be defined in 2025 . No time scale has been outlined . “ This move is designed to enhance customer and shareholder value through an increased focus on the CDMO offering , which is Lonza ’ s core business ,” the firm stated .
The full year outlook for 2024 remains flat in terms of sales growth with a 27-29 % core EBITDA margin . The CHI business has seen a weak market this year , offsetting the much strong performance of the CDMO business .
For 2025 , excluding CHI , Lonza expects sales growth of nearly 20 %, including about CHF 500 million from the Vacaville site acquisition .
Maharashtra state with a total capacity of over 66,000 tonnes / year . It turns over about $ 250 million / year and has more than 600 employees . Previous acquisitions include Aims Impex in India in 2018 and Tennants Fine Chemicals in the UK in 2021 .
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JAN / FEB 2025 SPECCHEMONLINE . COM
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