Lonza Announces “One Lonza” Strategy with Focus on CDMO Business

• Lonza shared its new “One Lonza” strategy, highlighting a simplified organizational structure to enhance its core CDMO business.

• The company confirmed its 2024 and 2025 financial outlook, including a planned exit from the Capsules & Health Ingredients (CHI) business.

Lonza has introduced its “One Lonza” strategy during its Investor Update 2024, focusing on the Contract Development and Manufacturing Organisation (CDMO) sector as its core business. The strategy includes a revised organizational structure aimed at streamlining operations, enhancing customer experience, and supporting future growth.

As part of this realignment, Lonza will exit the Capsules & Health Ingredients (CHI) business in 2025, citing a desire to optimise shareholder value. This strategic shift is aligned with a broader goal of becoming a “pure-play” CDMO business. Wolfgang Wienand, CEO of Lonza, stated, “Today, we have shared the plans for our One Lonza strategy…to create long-term value for our customers and shareholders.”

The new structure, operational from Q2 2025, will replace three divisions and nine business units with three integrated platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities. These platforms will focus on technologies such as mRNA, cell and gene therapies, and hybrid chemistry solutions.

Lonza confirmed its 2024 outlook, expecting flat constant exchange rate (CER) sales growth and a CORE EBITDA margin between 27% and 29%. For 2025, the company anticipates approaching 20% CER sales growth, driven partly by a CHF 500 million contribution from the recently acquired Vacaville site, with a CORE EBITDA margin nearing 30%.

Looking ahead, Lonza aims to achieve long-term low-teens CER sales growth through its CDMO Organic Growth Model, maintaining a trajectory consistent with its 2028 mid-term guidance.