Lonza cites ADC investment and GS Xceed gains in Asia as Q3 drivers
The Swiss life sciences services and drug ingredient firm issued a business update yesterday in which it predicted that earnings will around 10% this year thanks – in part – to it decision to add antibody-drug conjugate capacity in January.
The firm said: “The build-out of additional commercial scale Antibody Drug Conjugate (ADC) capacity in Visp is on track in response to continuous high demand for a full service integrated ADC offering, from mAb manufacture to conjugation.”
Demand for GS Xceed expression system from Asia in the 18 months since it was launched in the region also seems to be a factor in Lonza’s earnings forecast.
The Swiss firm said: “The GS Xceed Gene Expression System is expanding worldwide with Asia now representing 25% of research evaluation agreements.”
Lonza spoke more widely about the restructuring actions it has taken to try and improve profitability,
In his preconference call statement CEO Richard Ridinger focused on work Lonza has done to realign its business model in the face of competition, a strong Swiss Franc and rising raw materials prices.
"In our half year update, we have announced a number of important decisions regarding our footprint and portfolio.
“Our organization is working intensively on the implementation of these numerous transformational activities which will help increase our productivity, reduce our complexity and transform our business portfolio."