Note 9 – Investment in Joint Ventures and Associates

The following table summarizes the carrying amounts of interests in joint ventures and associates, which are accounted for using the equity method.

million CHF

 

2018

 

2017

 

 

 

 

 

Balance sheet value

 

 

 

 

Interests in joint ventures

 

2

 

4

Interests in associates

 

8

 

16

Total

 

10

 

20

 

 

 

 

 

Net income statement effect

 

 

 

 

Share of profit / (loss) of joint ventures

 

(1)

 

0

Share of profit / (loss) of associates

 

0

 

1

Total

 

(1)

 

1

In February 2017 Lonza announced that it had entered into a strategic partnership with Sanofi to build and operate a large-scale mammalian cell culture facility for monoclonal antibody production in Visp (CH). The strategic partnership combines the strong biologics development pipeline of Sanofi with the expertise of Lonza to design, construct, start up and operate a state-of-the-art large-scale mammalian cell culture facility. The total investment of both partners is estimated to be CHF 290 million (EUR 270 million). The facility is expected to be operational by 2020.

Lonza accounts for its share in BioAtrium AG (the entity that was founded for this strategic partnership) as investment in associates in accordance with IAS 28. There has been no significant financial impact on Lonza’s 2018 consolidated financial statements, except for the loan that Lonza granted to BioAtrium to commence construction of a production facility.

9.1 Joint Ventures

The Group has interests in three individually immaterial joint ventures. The following table analyzes, in aggregate, the carrying amount and share of profit and other comprehensive income of these joint ventures:

million CHF

 

2018

 

2017

 

 

 

 

 

Carrying amount of interests in joint ventures

 

2

 

4

 

 

 

 

 

Share of profit / (loss)

 

(1)

 

0

Share of other comprehensive income

 

0

 

0

In 2018 the Group did not receive dividends (2017: CHF 1 million) from joint ventures.

9.2 Associates

The Group has interests in six financially immaterial associates (including Lonza’s share in BioAtrium AG), of which two investments are classified as held for sale. The following table analyzes, in aggregate, the carrying amount and share of profit and other comprehensive income of these associates:

million CHF

 

2018

 

2017

 

 

 

 

 

Carrying amount of interests in associates

 

8

 

16

 

 

 

 

 

Share of profit / (loss)

 

0

 

1

Share of other comprehensive income

 

0

 

0

In 2018 the Group did not receive dividends (2017: CHF 3 million) from associates.