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

Basel, Switzerland, October 24, 2024 – In its quarterly qualitative update, Lonza reported third-quarter performance in line with its full-year forecast, with sales accelerating in the fourth quarter based on the timing of batch releases. In this context, Lonza confirms its outlook for the year 2024 with stable sales compared to the previous year in CERs and a high 20% CORE EBITDA margin.

Node Biological products division, Lonza had good momentum across the division, with strong commercial demand. Early stage services continued to recover. THE Small Molecules The division recorded continued robust demand for its commercial offerings and responded with strong operational performance. The divisional portfolio continues to move toward high-value, complex small molecules. THE Cell and Gene The division sustained its strong operational performance in Cellular and Genetic Technology, while Biosciences continued to see impacts from market headwinds. Finally, the Health Capsules and Ingredients The division performed smoothly in line with the market due to continued destocking of pharmaceutical capsules. Productivity measures partially offset the impact on margins resulting from lower demand and use of assets.

For the full year, Lonza expects a high level of contract signings across all CDMO businesses. 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 important milestone for Lonza was reached on October 1 with the successful completion of the acquisition of Genentech’s large-scale production facility in Vacaville (USA) from Roche for US$1.2 billion in cash. The Vacaville facility 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 by 2029. Due to specific demand, the facility will further be equipped with the latest N-1 perfusion technology for the production of next generation monoclonal antibodies. The start of GMP commercial operations is scheduled for the first half of 2025, with the start of technical operations scheduled for the fourth quarter of 2024.

Operations at the new highly potent 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 at the large-scale commercial aseptic pharmaceutical facility in Stein (CH).

Update for investors:

Lonza is pleased to send its invitation to the 2024 Investor Update on December 12, 2024 in Basel (CH). To participate in the event in person, register here until November 12, 2024. If you cannot participate in person, register here to access the live video webcast and conference call.

About Lonza

Lonza is one of the largest healthcare manufacturing organizations in the world. Working across five continents, our global community of nearly 18,000 colleagues helps pharmaceutical, biotechnology and nutrition companies bring their treatments to market. United by our vision of bringing any therapy to life, we support our customers with a combination of technological expertise, world-class production, scientific knowledge, 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-improving treatments.

Our business is structured to meet the complex needs of our customers across four divisions: Biologics, Small Molecules, Cells & Genes, and Healthcare Capsules & Ingredients. Our company generated sales of CHF 3.1 billion with a CORE EBITDA of CHF 893 million in semester of 2024. Find out more at www.lonza.com

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