Lonza: Biologic APIs boosted H1 revs and CAR-T deal will help sustain growth in H2

By Gareth Macdonald contact

- Last updated on GMT


Related tags: Biotechnology, Pharmacology, Biology

Lonza has increased its 2016 earnings guidance after strong H1 growth of its biologic APIs business.

The Swiss life science supplier posted revenue of CHF2.01bn ($2.12bn) for the six months to the end of June, which is 6% higher than the year earlier comparable period. Earnings increased 20% to CHF312m. 

Lonza attributed the growth to the performance of its pharma, biotech and specialty ingredients businesses, citing momentum its mammalian cell culture based manufacturing unit, bioscience solutions arm and “ongoing cost discipline​” as the key drivers.

The firm claimed it makes the active pharmaceutical ingredients (APIs) for 20 commercially available biopharmaceutical products.

Emerging tech

Lonza also said it benefited from higher demand for what it calls “emerging technologies,” citing a deal signed with chimeric antigen receptor T cell (CAR-T) gene therapy developer bluebird bio last month​ as an example.

A spokesman told us that although CAR-T is a young technology it is "interesting and growing area in which Lonza is well positioned to capture growth opportunities.​"


Lonza revised its full-year guidance and predicted double-digit increase on the CHF524m earnings it generated last year. Previously it forecast a single figure increase.

The firm also said its pharma and biotech business will continue to growth in the second half of the year, which it said would result in higher capital expenditure.

The results come a few weeks after Lonza completed the acquisition of North Carolina, US-based Triangle Research Labs. The firm provides the in vitro​ evaluation of drug-drug interactions, transporters and candidate toxicity.

Analysts at J.P Morgan Cazenov said Lonza's pharma and biotech division "continues to benefit from strong market demand and trends in outsourcing and multi-sourcing within the industry​."

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