Lonza reports solid first quarter

Expects the second half of 2013 to be stronger than the first six months

Lonza reported a ‘solid’ performance in line with expectations in the first quarter of 2013.

While the Swiss firm’s Specialty Ingredients market segment showed a good performance, the Pharma and Biotech market segment had a slow start as anticipated.

No actual figures have been released.

The VispChallenge initiative is well underway and Lonza says it is confident that the number of required lay-offs announced last November would be ‘well below the initially communicated magnitude of one third of a total of 400 positions’.

As already announced in its third-quarter update, the company will cut 100 positions worldwide over the next two years in Corporate Functions, of which 60 jobs have already gone.

We are working broadly to assess the performance and efficiencies across all of our operations

Lonza’s Chief Executive Richard Ridinger said: ‘Earlier this year, we announced significant changes to our organisation; aligning ourselves directly with markets we serve. I am pleased to report the newly focused organisation is taking hold while delivering on our first quarter results.

‘At the same time, we are working broadly to assess the performance and efficiencies across all of our operations as well as administrative functions and we are making good progress.’

Lonza’s Pharma and Biotech business saw a good pipeline development across all technologies. Various long-term supply agreements for small molecule products were signed during the first quarter and the expansion of the antibody drug conjugate plant in Visp is on track.

Biological Manufacturing also saw good pipeline development, the firm said. Resolving the manufacturing issues at the plant in Hopkinton, MA, US remains a key priority.

Looking forward, Lonza expects the second half of 2013 to be stronger than the first and reiterates its 2013 EBIT guidance growth of approximately 10%.

Companies