Lonza Group AG·Healthcare

Lonza's FY2025 results exceeded expectations, with EBITDA growth significantly ahead of revenue, supported by operating leverage and margin recovery. The CHI divestment accelerates Lonza's transition to a pure-play CDMO, improves capital allocation visibility, and supports shareholder returns through buybacks and deleveraging. Recent share price weakness appears driven by external factors, while structural tailwinds, biologics demand, onshoring, and patent cliff dynamics continue to underpin a favorable risk-reward.

Lonza Group AG (LZAGY) Discusses Divestment of Capsules and Health Ingredients Business and Focus on CDMO Transformation Transcript

DALLAS & NEW YORK & LONDON & TOKYO--(BUSINESS WIRE)--Lone Star Funds (“Lone Star”) today announced that an affiliate of Lone Star Fund XII, L.P. has entered into a definitive agreement to acquire the Capsules & Health Ingredients (“CHI”) division of Lonza Group AG. As part of the transaction, Lonza will retain a 40% equity position in the business. Headquartered in Basel, Switzerland, CHI operates globally across the Americas, Europe and Asia Pacific. The business comprises three segments:.

Lonza Group remains a leading CDMO, capitalizing on biopharma's shift to outsourced manufacturing and complex drug production. LZAGY delivered strong H2 results: 17% CDMO revenue growth, 28% EBITDA growth, and margin expansion to 32.8%. Management guides for 11%–12% CDMO growth and EBITDA margins above 32% in 2026, with free cash flow turning positive next year.

Lonza Group AG (LZAGY) Q4 2025 Earnings Call Transcript
Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia and New Zealand, and internationally. It operates through Biologics, Small Molecules, Cell & Gene, and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. The Small Molecules segment operates as an integrated development and manufacturing service provider for small molecule drug substances and their intermediates. It supports customers across various aspects of design, development, and manufacturing. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies. It also offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. In addition, this segment provides specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. The Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. The company was founded in 1897 and is headquartered in Basel, Switzerland.
Healthcare
Medical - Diagnostics & Research
17,995
2010-01-20
0.89