Lonza sets CHF7.5bn 2022 sales target citing pharma drivers

By Gareth Macdonald contact

- Last updated on GMT


Related tags: Pharmacology, Lonza

Lonza Group AG has predicted it will generate annual revenue of CHF7.5bn ($7.9bn) by 2022, citing recent acquisition Capsugel and its new Visp-based Ibex manufacturing service as drivers.

The Swiss life sciences supplier made the forecast today also revealing that, in the first half of the year, company revenue increased 15.1% to CHF2.32m and operating earnings grew 43.3% to CHF447m.

Within this, Lonza’s pharma&biotech segment generated revenue of CHF1.06bn, up 27% on the equivalent period last year. The unit saw operating earnings - core EBIT - increase 71.7% to CHF273m.

Lonza reported high demand across all businesses including its chemical manufacturing wing, which makes active pharmaceutical ingredients (APIs).

"Positive performance within chemical manufacturing reflects Lonza’s strong pipeline and high visibility going forward. Small molecules made a significant improvement compared to the prior year due to better commercial offerings to existing and new customers​" it said.

Similarly, Lonza said its mammalian cell culture-based drug production unit and clinical trial supply operations had seen demand increase.

The firm said it “expects to continue its growth along the healthcare continuum​” in its 2022 revenue guidance, also citing its recent acquisition Capsugel​ as a driver.

Capsugel will capture new market opportunities and substantial top-line synergies identified at the time of signing with initial benefits from 2018 onwards​” Lonza said.

Biomanufacturing service

Lonza also outlined its new Ibex Solutions offering, which it said is a likey growth engine. The service will provide mammalian, microbial, cellular or bioconjugate manufacturing capacity for drug industry customers.

The service will be based at a facility Lonza is building at its site in Visp, Switzerland, construction of which began last month. The firm said the project is expected to create several hundred jobs.

Lonza holds its conference call later today.

Cell and gene therapy

Lonza also reported its cell therapy business had grown. It said the acquisition of PharmaCell BV in June​ expanded its business in Europe.

It also said "recent investments in HansaBioMed Life Sciences from Estonia and Exosomics Siena in Italy, Lonza also tapped into the therapeutics market of exosome technology to leverage its portfolio of drug discovery products, as well as its development and manufacturing expertise in mammalian cell culture​."

Lonza bought Tallinn, Estonia-based start-up HansaBioMed in May, adding R&D, manufacturing and distribution capacity for products for the exosomes research market. In parallel, it invested in Exosomics Siena, which develops  exosome-based early-stage cancer screening and molecular diagnostic tests.

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