Lonza maintains 2017 target and says US plant and Capsugel integration on track
The Swiss life sciences supplier confirmed its 2017 prediction this week, explaining it expects full year revenue to grow in the high single digits and core EBITDA to be over CHF1bn. In 2016, sales were CHF4.13bn and EBITDA was CHF918m.
Lonza made the comments in a third quarter business update, which also touched on the performance of its segments - Pharma&Biotech and Specialty Ingredients – but did not provide specific revenue and earnings figures.
“Pharma&Biotech continued its momentum in Q3 2017; however, results are compared with an exceptionally strong Q3 2016” according to the firm, adding that its mammalian cell culture based and chemical manufacturing activities had been performance drivers.
Similarly, Lonza said its specialty ingredients business – which makes products for the consumer care, agro, coatings, composites and water treatment industries – “experienced a solid Q3 2017 and performed as expected.”
Manufacturing plant
Lonza has more specific about its manufacturing facilities.
It made clear that “hurricanes in the US Southeast had no material impact on the company's overall performance as operational issues were resolved thanks to the efforts of the managers and employees in these regions.”
It also confirmed the cell and gene therapy facility it is building in Pearland in Houston, Texas is on track to become operational early next year.
Pharma&biotech outlook
Lonza was positive about the future performance of it pharma&biotech business, although again it did not provide figures.
The firm said its new Ibex offering – which has seen it set up dedicated manufacturing capacity for Sanofi and Portola at its facility in Visp, Switzerland – and recent acquisition Capsugel will drive growth.
“In Q3 2017 Capsugel performed in line with expectations with particularly strong results in Consumer Health and Nutrition,” Lonza said.
