Lonza Demonstrates Strong Q1 2025 Performance

In its Q1 2025 update, Lonza Group AG reported robust performance, aligning with its full-year expectations for 2025. The company's contract development and manufacturing organization (CDMO) business showed strong growth, particularly in Biologics, Small Molecules, and Cell & Gene sectors. The Capsules & Health Ingredients (CHI) division continued on its recovery path, as anticipated.

Lonza confirmed a promising outlook for its CDMO sector, expecting nearly 20% sales growth and a CORE EBITDA margin approaching 30% in 2025. Improvements in the CHI division are also expected, with low-to-mid-single-digit sales growth projected. Strategic investments in new facilities are progressing, with operations at the Visp bioconjugation site expected to begin by 2028.

Despite global uncertainties, Lonza maintains a steady foothold, with healthy contract signings across the CDMO business and progress in integrating Vacaville. The company successfully concluded its share buyback program, repurchasing shares worth CHF 2 billion, signaling confidence in future prospects.