Q3 2024 qualitative update: Lonza confirms full-year 2024 forecast

Basel, Switzerland, October 24, 2024 – In its quarterly quality update, Lonza reported that third-quarter results were in line with full-year guidance, with fourth-quarter sales increasing based on batch release dates. In this context, Lonza confirms its full-year 2024 forecast, assuming unchanged year-on-year sales in CER units and a CORE EBITDA margin of a high level of 20.

In Biology division, Lonza saw good momentum across the division amid strong commercial demand. Early stage services continued to show improvement. The Small particles the division saw continued strong demand for its commercial offering and responded with strong operating results. The division’s portfolio continues to shift toward high-value, complex small molecules. The Cell and gene The division maintained strong operating performance in Cellular and Genetics, while the Bioscience business continued to be impacted by unfavorable market conditions. At last, Capsules and health ingredients The division recorded weak performance in line with the market due to continued stock withdrawals of pharmaceutical hard capsules. Productivity measures partially offset the impact on margins from lower demand and asset utilization.

Throughout the year, Lonza expects a high level of signed contracts across all CDMO companies. In September 2024 Lonza announced long-term commercial supply agreement with Vertex for CASGEVY^®the first approved gene-modified therapy using CRISPR/Cas-9 technology for the treatment of sickle cell disease and beta-thalassemia.

Another important milestone for Lonza was achieved on October 1 with the successful closing of the acquisition of Genentech’s large manufacturing facility in Vacaville (USA) from Roche for $1.2 billion in cash. The Vacaville facility will significantly strengthen Lonza’s global mammal production network and enable Lonza to meet continued strong customer demand. The operational and commercial integration of the facility is progressing as planned.

The new large-scale mammalian facility at Visp (CH) is fully covered by long-term commercial agreements and will reach full utilization by 2029. Due to particular demand, the facility will be additionally equipped with the latest N-1 perfusion technology for the production of next-generation monoclonal antibodies. The start of GMP’s commercial operations is planned for the first half of 2025, while the start of technical operations is scheduled for the fourth quarter of 2024.

Operations at the new, high-capacity API facility in Visp are expected to begin in the fourth quarter of 2024, with significant sales contribution expected in 2025. In addition, construction activities at a large commercial aseptic drug product facility in Stein (CH) continue are going according to plan.

Investor update:

Lonza is pleased to extend an invitation to the 2024 Investor Conference to be held on December 12, 2024 in Basel (CH). To take part in the event in person, you must register Here until November 12, 2024. If you are unable to attend in person, please register Here to access live video and conference call.

About Lonza

Lonza is one of the world’s largest healthcare product organizations. Operating on five continents, our global community of approximately 18,000 employees helps pharmaceutical, biotechnology and nutrition companies bring their therapies to market. United in our vision to make every therapy a reality, we support our customers by combining technological expertise, world-class manufacturing, scientific expertise, process excellence and innovation. Our work enables our clients to develop and commercialize their therapeutic discoveries, enabling their patients to benefit from life-saving and life-improving therapies.

The structure of our business is based on meeting the complex needs of our customers in four divisions: biological products, small molecules, cells and genes, and capsules and health ingredients. In H1 2024, our company generated sales of CHF 3.1 billion with CORE EBITDA of CHF 893 million. Find out more on the website www.lonza.com

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