Lonza reports CHF5.5 billion in sales in 2018

Full-year financials for the Swiss CDMO show 9% increase in organic sales

Lonza has released its full-year report for 2018. The company's financials show a 9% increase in organic (like-for-like) sales in this period. The Swiss biotech CDMO said that having completed the year with Capsugel as a combined company, sales amounted to CHF 5.5 billion for 2018.

All figures are for Lonza continuing operations (excluding the Water Care business unit) in reported currency and are compared with the same period in 2017 on a like-for-like basis.

On a segment level, Lonza Pharma & Biotech contributed with 14% organic sales growth, especially driven by Clinical Development and Manufacturing and by Commercial Manufacturing in its biological business. in the 2018 period, this segment delivered CHF 3.1 billion sales, bringing 14% in organic sales growth.

Lonza's Specialty Ingredients segment achieved 3.4% organic sales growth. This, the company said, "despite headwinds due to raw material price increases, supply chain challenges and negative cyclical impacts throughout 2018". This segment delivered CHF 2.4 billion sales, up 3.4% compared to previous period.

Lonza said its Consumer Health division performed "strongly with continued momentum", and that the Consumer Health and Nutrition benefitted from synergies across nutritional ingredients, formulation capabilities and dosage form offerings.

The segment increased organic sales by 6.3% to CHF 1.1 billion in 2018.

"With these record full-year results, Lonza achieved another successful milestone toward our 2022 goals," said Richard Ridinger, CEO of Lonza.

He added: "The Healthcare Continuum, which we first introduced in 2016 and have continued to shape since then, has been proven to be the right strategy for profitable growth and strong market leadership."

Ridinger, who announced he will step down from the CEO in the coming months, said the transformative acquisition of Capsugel added value from the first day, and that the company is proud of its achievement "in bringing two high-performing companies together successfully".

Investment plans

Lonza also revealed that it plans to continue investing in its healthcare businesses. In 2018 the company announced the expansion of its Ibex Solutions facility in Visp (CH), with two new, innovative packages – Ibex Design and Ibex Develop.

The two new offerings are designed to meet the evolving needs of biotech companies with antibody therapies, from preclinical stage through to commercialization, including fill and finish.

During 2018 another key focus at Lonza was on the development of its cell- and gene-therapy capabilities with targeted investments in innovative technologies and our global footprint.

Lonza said all investments that have previously been announced are progressing as planned.

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