Lonza Group

{{Short description|Swiss pharmaceutical and biotech company}}{{Multiple issues|{{promo|date=January 2025}}

{{excessive detail|date=January 2025}}

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{{Self-published|date=January 2025}}}}{{Infobox company

| name = Lonza Group AG

| logo = Lonza Logo.svg

| logo_size = 200px

| image = Basel - 2017 - Lonza Hochhaus1.jpg

| image_size = 250px

| image_caption = Lonza Tower in Basel, Switzerland

| type = Aktiengesellschaft

| traded_as = {{unbulleted list| {{SWX|LONN}} | {{SGX|O6Z}} | SMI component}}

| foundation = {{start date and age|1897}}

| location = Basel, Switzerland

| key_people = {{unbulleted list|Jean-Marc Huët (chairman)|Wolfgang Wienand (CEO)}}

| industry = {{unbulleted list|Pharmaceuticals|biotechnology}}

| products = Biopharmaceuticals

| revenue = {{increase}} {{CHF|6.72 billion|link=yes|ISO=yes}} (2023){{cite web |url=https://www.lonza.com/annualreport/2023/documents/Lonza_2023_Annual_Report.pdf |title=Annual Report 2023 |access-date=10 June 2024 |publisher=Lonza Group }}

| operating_income = {{decrease}} CHF 880 million (2023)

| net_income = {{decrease}} CHF 655 million (2023)

| assets = {{nowrap|{{decrease}} CHF 16.8 billion (2023)}}

| equity = {{decrease}} CHF 9.51 billion (2023)

| num_employees = 18,000 (2023)

| owner =

| homepage = {{url|lonza.com}}

}}

Lonza Group AG is a Swiss multinational manufacturing company for the pharmaceutical, biotechnology and nutrition sectors, headquartered in Basel, with major facilities in Europe, North America and South Asia. Lonza was established under that name in the late 19th-century in Switzerland. The company provides product development services to the pharmaceutical and biologic industries, including custom manufacturing of biopharmaceuticals and detection systems and services for the bioscience sector.

History

Lonza was founded in 1897 in the small Swiss town of Gampel, situated in the canton of Valais, taking its name from the nearby river. In the course of the 20th century Lonza evolved from hydroelectricity and C2 chemistry, through nitrogen chemistry to petrochemistry before moving into fine chemistry and biochemistry.{{cite journal |last1=Eschenmooser |first1=Walter |title=100 Years of Progress with LONZA |journal=CHIMIA |date=June 1997 |volume=51 |issue=6 |pages=259–269 |doi=10.2533/chimia.1997.259 |s2cid=100485418 |doi-access=free }}

Initially, the company produced electricity. Lonza moved to neighbouring Visp (where it retains a production site today) in 1909. Competition from electric lighting reduced demand for calcium carbide and in 1915 Lonza started industrial production of calcium cyanamide which became popular as a cheap nitrogenous fertiliser, only to be supplanted by urea. In 1923, Lonza started to convert calcium carbide to metaldehyde (sold as a solid fuel under the brand 'Meta' and then slug repellant) via acetylene and acetaldehyde. In 1925, ammonia production was started, with a process licensed from Casale. With calcium cyanamide and calcium nitrate (made from nitric acid), Lonza commercialised formulated fertilisers starting in the 1930s. At the start of World War II, Lonza was contracted by the Swiss government to produce synthetic fuel, which it did by converting acetaldehyde to paraldehyde, used as an additive in transport fuel.{{Citation needed|date=January 2025}}

Lonza is involved in the manufacturing of biologics with several pharmaceutical companies. Lonza entered into a partnership with Teva in 2009 to develop and manufacture biosimilars. In 2010, they made a deal with GlaxoSmithKline to manufacture therapeutic monoclonal antibodies. In 2014, Lonza entered into an agreement with Bristol-Myers Squibb to manufacture two biologic drugs. Lonza also manufactures Imbruvica for Pharmacyclics and Mydicar for Celladon. In 2015, Lonza contracted with Alexion to construct a new facility dedicated to Alexion manufacturing. In 2017, Lonza and Sanofi partnered to construct a new facility for production of biologics.{{Cite web|url=https://www.lonza.com/about-lonza/company-profile/company-history.aspx|title=Company History|last=|date=|website=Company Profile|access-date=2018-04-15}}{{Self-published source|date=September 2018}} Lonza entered into cell and gene therapy with the acquisition of Houston-based Vivante GMP Solutions in 2010{{cite news |last1=Staff |first1=G. E. N. |title=Lonza Expands into Viral-Based GMP Manufacturing Through Acquisition of Vivante |url=https://www.genengnews.com/news/lonza-acquires-vivante-to-expand-into-viral-based-gmp-manufacturing/ |work=GEN - Genetic Engineering and Biotechnology News |date=30 August 2010}}.

In November 2019, Chairman Albert Baehny became both chairman and interim CEO of Lonza after chief executive officer (CEO) Marc Funk left after 9 months.{{Cite web |title=Lonza leader Marc Funk quits after just 9 months as CEO |url=https://www.fiercepharma.com/manufacturing/lonza-leader-marc-funk-quits-after-just-nine-months-as-ceo |website=FiercePharma}} In November 2020, Pierre-Alain Ruffieux commenced his role as Chief Executive Officer{{Cite web |title=Lonza Welcomes New Group Chief Executive Officer Pierre-Alain Ruffieux |url=https://www.lonza.com/news/2020-11-02-06-00 |website=Lonza.com}} which ended at the end of September 2023, totaling 2 years and 11 months in the position of CEO. Chairman Albert Baehny became again, both chairman and interim CEO, as from October 2023.{{Cite news |date=18 September 2023 |title=Ad Hoc announcement pursuant to Art. 53 LR |url=https://www.lonza.com/news/2023-09-18-07-00 |access-date=20 September 2023}}

In May 2020, Moderna struck a manufacturing deal with Lonza to produce its (mRNA-1273) COVID-19 vaccine active ingredient while expanding sterile production and fill-finish activities to 500 million doses starting in 2021.Taylor, N. (Aug. 2020). [https://WWW.BIOPHARMA-REPORTER.COM/ARTICLE/2020/08/25/MODERNA-SCALING-UP-EX-US-COVID-19-VACCINE-CAPACITY-AS-EU-DEAL-NEARS Moderna scaling up ex-US COVID-19 vaccine capacity as EU deal nears]. BioPharma-Reporter.com. Retrieved 23 September 2020. Production of the mRNA bulk vaccine started in January 2021, soon after an official visit by Swiss Federal Councilor Alain Berset. Lonza Group was responsible for the global production of two-thirds of the raw materials for the Moderna vaccine at combined U.S. and Swiss facilities.{{Citation needed|date=January 2025}}

In May 2024, Jean-Marc Huët was elected Chairman following the retirement of Albert Baehny, who had held the position of Chairman and interim CEO.{{Cite news |last=Feldges |first=Dominic |date=5 June 2024 |title=Auch Historiker können Topmanager werden: Jean-Marc Huët schafft es erst bei Heineken und nun bei Lonza ins Präsidium |url=https://www.nzz.ch/wirtschaft/jean-marc-huet-praesident-von-heineken-und-nun-auch-von-lonza-ld.1833041 |url-status= |work=Neue Zürcher Zeitung}} In July 2024, Wolfgang Wienand commenced his role as CEO of Lonza.{{Cite news |last=Hotz |first=Michael |date=2 April 2024 |title=Neuer Lonza-Chef: Vom Fechtprofi an die Spitze |url=https://www.handelszeitung.ch/unternehmen/vom-fechtprofi-an-die-spitze-698636 |work=Handelszeitung}}

Business operations

{{As of|2023}}, Lonza had over thirty development and manufacturing sites located in countries including Switzerland, the United States, the United Kingdom, Belgium, Spain, France, Mexico, Brazil, Japan, India, China and Singapore.{{Cite web |url=https://www.lonza.com/about-lonza/company-profile/facts-and-figures/facts.aspx |title=Fact Sheet |last= |date= |website=Company Profile |publisher=Lonza |access-date=2018-04-15}}{{Self-published source|date=September 2018}}

The presence in India was established in Genome Valley, where ground was broken in 2011.{{Cite news|url=http://www.business-standard.com/article/companies/lonza-to-invest-rs-250-cr-in-genome-valley-110092500077_1.html|title=Lonza to invest Rs 250 cr in Genome Valley|last=|date=25 September 2010|work=Business Standard|access-date=2018-04-15|location=India}}{{Cite web|url=http://pharma.industry-focus.net/bio-pharmaceuticals/179-lonza-group-to-set-up-a-bio-pharma-unit-at-genome-valley-lonza-group-to-set-up-a-bio-pharma-unit-at-genome-valley.html|title=Lonza Group to set up a bio pharma unit at Genome Valley|last=|date=|publisher=ibis|access-date=2018-04-15}}{{Cite press release|title=Lonza provisionally allotted 30 Acres of land in the "Genome Valley", Hyderabad (India)|date=29 May 2009|publisher=Lonza|url=https://www.lonza.com/about-lonza/media-center/news/2009/allotment-30-acres-of-land-in-the-genome-valley.aspx}}{{Self-published source|date=September 2018}} In 2018, Lonza opened a {{Convert|300,000|sqft|m2}} facility focused on cell and gene therapy in the United States in Pearland, Texas (a suburb of Houston).{{Cite news|url=https://www.genengnews.com/gen-news-highlights/lonza-opens-cell-and-gene-therapy-facility-in-pearland-tx/81255682/|title=Lonza Opens Cell and Gene Therapy Facility in Pearland, TX|last=Philippidis|first=Alex|date=10 April 2018|work=Genetic Engineering & Biotechnology News|access-date=2018-04-15|department=GEN News Highlights}} In October 2024, the company completed the acquisition of the Genentech biologics manufacturing site in Vacaville, California, from Roche.{{Citation needed|date=January 2025}}

{{As of|2023}}, the company employed approximately 18,000 people across more than 30 locations.{{Cite web |url=https://www.lonza.com/about-us |title=About Us |publisher=Lonza |access-date=February 6, 2023}}{{Cite web |url=https://www.macroaxis.com/invest/ratio/LZAGY/Number-of-Employees |title=Lonza Number of Employees |publisher=Macroaxis |access-date=February 6, 2023}}

In 2024, Lonza announced plans to streamline its operations by exiting the capsules and health ingredients sector.{{Cite news |last=Demetz |first=Isabel |date=12 Dec 2024 |title=Lonza seeks deals as it exits health and ingredients to focus on contract development |url=https://www.reuters.com/business/healthcare-pharmaceuticals/lonza-exit-capsules-health-ingredients-business-focus-contract-development-2024-12-12/?utm_campaign=pharmalittle&utm_medium=email&_hsenc=p2ANqtz-_o5FplnZD3QzmLIvOtJVd_2WmAcWJhienvloFuioqOMES7sPtcY074GT4dS5feGrexhydJkJkFOfrMfCda_2-i4ubzUA&_hsmi=338267625&utm_content=338267625 |work=Reuters}} The decision follows a decrease in demand for pharmaceutical supplies after the COVID-19 pandemic. While the shift is expected to result in non-cash write-downs, analysts believe it will enhance Lonza’s growth prospects and financial stability.{{Cite web |last=Kansteiner |first=Fraiser |date=2024-12-12 |title=Lonza aims to shed capsules business, restructure CDMO offerings |url=https://www.fiercepharma.com/pharma/lonza-plans-shed-capsules-business-restructure-cdmo-offerings-amid-operational-pivot |access-date=2025-01-02 |website=www.fiercepharma.com |language=en}} The divestment process, targeting a segment responsible for 17% of the company’s 2023 revenue, will begin this year. Lonza intends to focus on its core business as a contract development and manufacturing organization (CDMO).{{Cite web |title=Lonza to exit capsule business |url=https://cen.acs.org/business/outsourcing/Lonza-exit-capsule-business/102/web/2024/12 |access-date=2025-01-02 |website=Chemical & Engineering News |language=en}} Notably, the company is the global leader in producing monoclonal antibodies, a key technology behind new Alzheimer’s treatments. Bernstein analyst Justin Smith praised the move as a step toward “operational simplification,” highlighting Lonza’s new business focus on three platforms: integrated biologics, advanced synthesis, and specialized modalities.{{Citation needed|date=January 2025}}

References

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