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.
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:
In 2018 the Group did not receive dividends (2017: CHF 1 million) from joint ventures.
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:
In 2018 the Group did not receive dividends (2017: CHF 3 million) from associates.