Q3 2024 Qualitative Update: Lonza Confirms Full-Year 2024 Outlook

Basel, Switzerland, 24 October 2024 – In its quarterly qualitative update, Lonza reported third-quarter performance in line with its full-year outlook, with accelerated sales in the fourth quarter based on the timing of batch launches. In this context, Lonza confirms its full-year 2024 outlook with flat year-over-year sales in CER and a 20-year CORE EBITDA margin.

In the biological division, Lonza experienced good momentum across the division with strong commercial demand. Early stage services continued to recover. The small molecules The division saw continued robust demand for its commercial offerings and responded with strong operating performance. The division’s portfolio continues to shift towards high-value complex small molecules. The Cell and gene The division maintained its strong operating performance in Cell & Gene Technology, while Bioscience continued to see impacts from market headwinds. Finally, the Capsules and ingredients for health The division experienced soft performance in line with the market, due to continued destocking of pharmaceutical hard capsules. Productivity measures have partially offset the impact on margins resulting from lower demand and asset utilization.

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

Another major milestone for Lonza was achieved on October 1st with the successful closing of the acquisition of Genentech’s large manufacturing plant in Vacaville, USA, from Roche for $1.2 billion in cash. The Vacaville site will significantly strengthen Lonza’s global mammalian manufacturing network and enable Lonza to meet continued strong demand from its customers. The operational and commercial integration of the site is progressing as planned.

The new large-scale mammal facility in Visp (CH) is fully contracted with long-term commercial agreements, reaching full utilization in 2029. Due to specific demand, the facility will be equipped with latest N-1 perfusion technology for production. of new generation monoclonal antibodies. The start of commercial operations of GMP is planned for the first half of 2025, with the start of technical operations planned for the fourth quarter of 2024.

Operations at the new high-powered API facility in Visp are expected to begin in the fourth quarter of 2024, with a significant sales contribution expected in 2025. Additionally, construction remains on track for the facility · commercialization of aseptic pharmaceutical products on a large scale in Stein (CH).

Investor Update:

Lonza is pleased to issue its invitation to the 2024 Investor Update on December 12, 2024 in Basel (CH). To attend the event in person, you must register here by November 12, 2024. If you can’t attend in person, please register here to access live video streaming and conference calling.

About Lonza

Lonza is one of the largest healthcare manufacturing organizations in the world. Working on five continents, our global community of around 18,000 colleagues helps pharmaceutical, biotech and nutrition companies bring their treatments to market. United by our vision to bring any therapy to life, we support our customers with a combination of technological know-how, 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-enhancing treatments.

Our business is structured to meet the complex needs of our customers in four divisions: Biologics, Small Molecules, Cells & Genes, and Capsules & Health Ingredients. Our company generated sales of CHF 3.1 billion with underlying EBITDA of CHF 893 million in H1 2024. Learn more at www.lonza.com

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