Lonza invests CHF85m to expand manufacturing capacity by 30 billion capsules annually

22 Oct 2020 --- Lonza is expanding its manufacturing capacity by 30 billion capsules annually in a CHF 85 million (US$93.7 million) investment. The aim is to secure the company’s near- and long-term capsule supply.

The move enables a 15 percent increase in Lonza’s current capsule production capacity – increasing the total capacity from 230 to 260 billion capsules annually.

The Swiss company’s expansion is further motivated by increasing global demand for capsules, as the pandemic has driven consumers to take a more active interest in their health.

“The pandemic heightened customer focus on what was already a key priority. It turned attention to specific health areas, such as immunity, sport health and personal care, which may not have had the same spotlight before,” Claude Dartiguelongue, president of Capsules & Health Ingredients (CHI) at Lonza, tells NutritionInsight.

“Regardless of where consumer health priorities lie, the capsule offers a flexible, familiar and easy-to-consume dosage form that can transport a wide variety of ingredients safely, effectively and in a targeted manner,” he continues.

“Capsules are no longer simply a convenient format for taking oral medication but can now also help to manage the timing and location of ingredient release in the body.” 

The new expansion involves eight global Lonza sites and will expand capsule manufacturing capacity by 30 billion capsules annually.Investment in the making
This latest commitment follows on from an initial investment initiated in 2019 to increase CHI’s capacity by ten billion capsules. Notably, consumers have started taking a more active interest in their health “well before the pandemic broke out,” Dartiguelongue points out. 

“More people have been doing the reading to understand their own health better and take ownership of it, which means their interest in nutritional support has been growing and evolving gradually.” 

Moreover, the CHI division intends for the extra manufacturing capacity to address the high growth across its gelatin, vegetarian and specialty polymers portfolio as well as the liquid-filled hard capsules sold under the Licaps brand. 

“We do plan to continue investing in [the vegan DRcaps capsules] as we expand, considering we expect consumer interest in personalized delivery solutions to continue growing,” adds Dartiguelongue. 

The vegan capsules protect sensitive ingredients from stomach acid through the designed release of the capsule fill after it has safely bypassed the acidic stomach environment. Both technologies offer additional taste-masking benefits, premium quality and a visual appeal, says Dartiguelongue. 

This investment will be made over two fiscal years, 2020 and 2021, across eight global Lonza manufacturing sites, including Bornem, Belgium; Colmar, France; Greenwood, US; Haryana, India; Jakarta, Indonesia; Puebla, Mexico; Sagamihara, Japan; and Suzhou, China.

COVID-19 spurs capsule business growth
Lonza’s half year report 2020 detailed in July that the CHI division benefited from a strong nutrition market, as the COVID-19 pandemic drove consumer interest in nutritional supplements. 

There is “huge potential” for advanced technologies within the walls of a single capsule; here depicted Licaps liquid-filled beadlet capsules.CHI operated at a high level of capacity utilization to meet increased demand for its respective products. In contrast, however, sales for hard pharma capsules were flat. 

In a recent interview with NutritionInsight, Lonza’s Dartiguelongue shared the company’s new focus on the pharma and biotech industry. It has also introduced a structural and cultural blueprint set to create a harmonized “one business” identity. 

CHI is to represent 27 percent of Lonza’s sales as one of the company’s four-pillar business divisions.

“If we look at our nutrition business, we now produce a range of different capsules and demand is growing. Each of these modalities has very different value chains and the new structure also gives them room to grow,” Dartiguelongue then explained.

In April, Lonza expanded its food colored capsules range with vegetarian Vcaps Plus. Last year, the company also introduced its Vcaps Plus White Opal capsule in a bid to address the growing demand for opaque capsules that do not include titanium dioxide.

Huge potential within capsule walls
For brands that aspire to grow in the consumer health and nutrition space, Dartiguelongue notes that it may be “tempting” to choose a new or rapidly-rising delivery format without considering regulatory requirements or crucial consumer needs.

“A product might feature a trending ingredient, but does it offer clinically-demonstrated benefits? Is it easy to swallow, even multiple times a day? It may catch the eye, but does it deliver ingredients safely and effectively, in a highly bioavailable form? For any new product launch to succeed, it must deliver on performance, which is what capsules enable,” he affirms.

Ultimately, there is “huge potential” for innovation and advanced technologies within the walls of a single capsule, he concludes.

 By Anni Schleicher