Delivering on Our Strategy
Founded in 1897 in the Swiss Alps, Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets with more than 40 major manufacturing and R&D facilities and approximately 10,000 employees worldwide. We harness science and technology to create products that contribute to health and well-being and that enhance the overall quality of life.
The Healthcare Continuum
Lonza’s overall strategy is to be the leading integrated solutions provider for the global pharmaceutical and consumer healthcare and nutrition markets – from prescription drugs to personal care and wellness. These markets along the healthcare continuum span all of our Pharma&Biotech and many of our Specialty Ingredients businesses. Last year’s record financial performance – the fifth year in a row that we delivered improvements on all major financial performance indicators – is a testament to the value of our strategic focus and growth plans.
Getting Closer to the Patient and Consumer
In September 2016 Lonza strengthened our exposure to the healthcare continuum by acquiring InterHealth Nutraceuticals (USA). InterHealth complements Lonza’s existing nutritional portfolio in the area of sports nutrition, weight management, immune health and pet health. Its proprietary UC‑II® joint health care ingredient, for example, is revolutionizing the treatment of hip, knee and other joint pain and stresses.
Another major stride in decisively positioning the company to grow along the healthcare continuum was made in December 2016 when we announced our intention to acquire Capsugel. This acquisition is designed to create a leading integrated, value-added solutions provider in drug development, formulation, delivery technologies and manufacturing for the global pharma and consumer healthcare and nutrition industries.
The acquisition of Capsugel will accelerate growth and deliver value along the healthcare continuum by complementing our existing offerings and by opening up new market opportunities in the pharma and consumer healthcare and nutrition industries.
With Capsugel Lonza will add a trusted brand with a large breadth of technologies and will expand the market reach of our contract development and manufacturing organization (CDMO) and products businesses. This addition will also support Lonza’s strategic ambition of getting closer to the patient and end consumer.
The Capsugel acquisition is expected to close in the second quarter of 2017 and is subject to certain regulatory approvals and other customary closing conditions.
Our strategic approach to our segments is twofold: capitalizing on cross-business synergies offered by vital technology links and balancing the risk profile between the Pharma&Biotech segment and the Specialty Ingredients segment.
With more than a century of experience, Lonza has a unique capability to connect our biotech expertise with our fine chemical know-how to provide the best solutions for our customers now and in the future. As part of our overall strategy, we want to play a significant role as a global player in target market segments that have a natural growth dynamic, following the megatrends that we can see and anticipate for the 21st century. These megatrends include the need for appropriate medical treatment; growing consumer needs for high-end preventive healthcare and well-being; intelligent use and protection of our resources; and the need for clean, potable water and abundant food.
Another key strategic focus is quality, where Lonza’s Pharma&Biotech businesses are earning a reputation as a leader in error prevention and advanced human performance management. Around the world we are driven by our firm commitment to quality as we strive for operational excellence across regions and functions, every day. Through our Dedicated to Excellence and Error Prevention System initiatives, we are harnessing continuous improvement principles and practices to provide a safe working environment for our employees and to ensure our products and services are the best they can be. The tools and techniques employed by Pharma&Biotech are being shared with and embraced by the Specialty Ingredients operations, particularly those approaches for hygiene and personal care ingredients that face strict regulatory standards that are akin to those required of medicines.