Lonza reports strong momentum for Q3 boosted by businesses along the healthcare continuum
25 Oct 2018 --- Lonza has reported ongoing momentum in the third quarter (Q3), boosted by its businesses along the healthcare continuum, including Pharma & Biotech and Speciality Ingredients. The company reports it is capitalizing on organic growth opportunities such as its Ibex solutions, which it recently expanded.
In the first half of this year, Lonza reported strong momentum with organic growth of 8 percent (like-for-like) sales and 11 percent CORE EBITDA. The company’s businesses along the healthcare continuum achieved double-digit organic sales growth.
Lonza’s US$5.5 billion acquisition of Capsugel in July 2017 also exceeded expectations for performance and synergistic potential in the first half of the year. Overall, all Lonza’s healthcare continuum offerings became stronger and this was mirrored in the recently released Q3 Qualitative Business Update.
During the company’s Capital Markets Day in September, Lonza discussed its growth trajectory toward and beyond 2022.
“We emphasized that we are focusing our investments and initiatives on our core markets along the healthcare continuum,” says Richard Ridinger, CEO of Lonza. “We are capitalizing on attractive organic growth opportunities, like the recently announced expansion of our Ibex Solutions offerings in Visp (CH) that provide clinical development and manufacturing services along the whole value chain and now include fill and finish,” he adds.
Pharma & Biotech
The Ibex Solution expansion will include two new, innovative packages – Ibex Design and Ibex Develop to meet the evolving needs of biotech companies with antibody therapies, from the preclinical stage through to commercialization. The offerings received positive feedback in the market; construction at the Visp, Switzerland, site is underway, and it will become operational from 2020.
The small-molecule businesses further extended their offerings for development and manufacturing of highly potent active pharmaceutical ingredients (HPAPIs). Pharma hard capsules and dosage form and delivery systems continue to perform above expectations due to buoyant customer interest and capturing of cross-selling synergies.
All other expansion programs at the company’s US facilities in Portsmouth, Houston and Hayward, as well as those in Singapore and Visp, Switzerland, have been progressing as planned and are reportedly experiencing high customer interest.
Specialty Ingredients
As of January 1, 2018, the Specialty Ingredients segment began operating in three distinct units: a Consumer Health division (including the former Capsugel consumer health and nutrition business), a Consumer & Resources Protection division and a Water Care business unit.
The hard capsule demand continues to be strong across all regions with specialty polymers and innovative offerings driving growth, for example, Lonza’s delayed-release capsules (DRcapsTM) for specialty applications.
Innovation initiatives to strengthen the personal care portfolio are ongoing. One example is the recently launched bioactive functional ingredient helps to protect skin against environmental stressors such as blue light.
Lonza has confirmed its full-year outlook to project mid- to high-single-digit sales growth on a comparable basis in line with Mid-Term Guidance 2022.
