- Lonza reported strong CDMO demand in Q3 2025, with robust uptake across bioconjugates, small molecules, and large-scale mammalian assets.
- Vacaville integration, ramp-up of HPAPI and mammalian facilities in Visp, and continued contract signings underpin the company’s full-year 2025 outlook.
Lonza has reported a strong qualitative performance in Q3 2025, confirming its upgraded Full-Year 2025 Outlook for both its CDMO and Capsules & Health Ingredients (CHI) businesses. The company highlighted robust demand for large-scale mammalian manufacturing, bioconjugates, and small molecules, with the Vacaville (US) acquisition contributing to continued momentum.
In the CDMO segment, Lonza signed significant strategic contracts during the quarter, including long-term agreements for integrated drug substance and drug product supply of bioconjugates, and a multi-year commercial supply agreement within its Small Molecules Technology Platform. The Vacaville site maintained high customer interest, with further contract signings anticipated in the coming months.
Operationally, the integration of the Vacaville facility into Lonza’s global network is progressing in line with plan, maintaining strong quality standards while preparing for new product introductions. Capital expenditure at the site is underway, focusing on automation upgrades and multi-purpose capabilities over the next two to three years. Meanwhile, the highly potent API plant (HPAPI) in Visp has reached full commercial operations, and the large-scale mammalian drug substance facility is progressing with GMP operations, with full commercial production expected to ramp up in 2026.
Lonza’s CHI segment returned to positive CER growth in Q3, supported by higher pharmaceutical capsule volumes and strong US manufacturing presence. Early-stage activities also maintained high utilisation, representing around 10% of the CDMO business, with minimal expected impact from biotech funding fluctuations.
The company reaffirmed its full-year 2025 outlook, projecting organic CER sales growth of low-teens percentage for its CDMO business, excluding Vacaville, and 20–21% including Vacaville, alongside a CORE EBITDA margin of 30–31%. CHI is expected to deliver low-to-mid single-digit CER sales growth with an improved CORE EBITDA margin in the mid-twenties. Lonza also anticipates a minor FX headwind of -2.5 to -3.5% for sales and CORE EBITDA due to the weakening US Dollar.
