Pharma & Biotech

Scientists mid-conversation (mood picture)

Lonza Pharma & Biotech’s vision is to enable our customers to meet some of the greatest challenges in patient treatment and by Delivering the Medicines of Tomorrow, Today®. The Pharma & Biotech market-focused segment comprised the following offerings in 2018:

  • Clinical development services and manufacturing in biologics and small-molecule businesses
  • Commercial manufacturing in biologics and small-molecule businesses
  • Consumables and research tools

>575

clinical development programs

>290

commercial medicines supplied

(including dosage form and delivery systems)

>200

billion capsules produced

(including capsules for pharma and consumer health and nutrition businesses)

The modalities across biologics include mammalian and microbial expression systems, and cell and gene technologies, covering both drug substance and parenteral drug product services. The modalities across small molecules cover early and current good manufacturing practice (cGMP) chemical intermediates and customized active pharmaceutical ingredients (API), including highly potent APIs (HPAPIs) and cytotoxics. Drug formulation and enhanced oral dosage forms and delivery systems complete the capability. The consumables include cell-culture, transfection and molecular biology tools for life-science research.

Overview of Lonza Pharma & Biotech Technologies and Integrated Value Chain Offerings
Overview of Lonza Pharma & Biotech Technologies and Integrated Value Chain Offerings (graphic)
Pharma & Biotech

million CHF

 

2018

 

Change in %

 

2017
1restated

 

Change in %

 

2017
2pro-forma

 

 

 

 

 

 

 

 

 

 

 

1

Restated to reflect adoption of IFRS 15

2

Reported Lonza full-year 2017 financial results (restated for IFRS 15) include Capsugel full-year 2017 financial results

Sales

 

3,113

 

29.3

 

2,408

 

13.9

 

2,733

 

 

 

 

 

 

 

 

 

 

 

CORE EBITDA

 

1,021

 

38.7

 

736

 

23.6

 

826

CORE EBITDA margin in %

 

32.8

 

 

 

30.6

 

 

 

30.2

 

 

 

 

 

 

 

 

 

 

 

CORE EBIT

 

826

 

41.9

 

582

 

27.3

 

649

CORE EBIT margin in %

 

26.5

 

 

 

24.2

 

 

 

23.7

Lonza Pharma & Biotech continued to outperform with 14% organic sales growth and a 32.8% CORE EBITDA margin, an improvement of 260 bps on a like-for-like basis. This segment delivered CHF 3.1 billion sales for 2018; and CORE EBITDA amounted to CHF 1.0 billion, a pro-forma increase of 23.6% versus prior year. Excellent organic CORE EBIT growth of 27.3% resulted in a CORE EBIT of CHF 826 million and a CORE EBIT margin of 26.5%.

CORE EBITDA million CHF and CORE EBITDA Margin in %
CORE EBITDA and CORE EBITDA Margin (bar chart)

1 Reported pro-forma full-year 2017 financial results (restated for IFRS 15) include Capsugel full-year 2017 financial results