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Lonza Group

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Lonza Group AG
Company typeAktiengesellschaft
ISINCH0013841017 Edit this on Wikidata
Industry
Founded1897; 128 years ago (1897)
HeadquartersBasel, Switzerland
Key people
ProductsBiopharmaceuticals
RevenueIncrease CHF 6.72 billion (2023)[1]
Decrease CHF 880 million (2023)[1]
Decrease CHF 655 million (2023)[1]
Total assetsDecrease CHF 16.8 billion (2023)[1]
Total equityDecrease CHF 9.51 billion (2023)[1]
Number of employees
18,000 (2023)[1]
Websitelonza.com

Lonza Group AG is a Swiss multinational manufacturing company for the pharmaceutical, biotechnology and nutrition sectors, headquartered in Basel, with major facilities in Europe, North America and South Asia. Lonza was established under that name in the late 19th-century in Switzerland. The company provides product development services to the pharmaceutical and biologic industries, including custom manufacturing of biopharmaceuticals and detection systems and services for the bioscience sector.

History

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Lonza was founded in 1897 in the small Swiss town of Gampel, situated in the canton of Valais, taking its name from the nearby river. In the course of the 20th century Lonza evolved from hydroelectricity and C2 chemistry, through nitrogen chemistry to petrochemistry before moving into fine chemistry and biochemistry.[2]

Initially, the company produced electricity. Lonza moved to neighbouring Visp (where it retains a production site today) in 1909. Competition from electric lighting reduced demand for calcium carbide and in 1915 Lonza started industrial production of calcium cyanamide which became popular as a cheap nitrogenous fertiliser, only to be supplanted by urea. In 1923, Lonza started to convert calcium carbide to metaldehyde (sold as a solid fuel under the brand 'Meta' and then slug repellant) via acetylene and acetaldehyde. In 1925, ammonia production was started, with a process licensed from Casale. With calcium cyanamide and calcium nitrate (made from nitric acid), Lonza commercialised formulated fertilisers starting in the 1930s. At the start of World War II, Lonza was contracted by the Swiss government to produce synthetic fuel, which it did by converting acetaldehyde to paraldehyde, used as an additive in transport fuel.[citation needed]

Lonza is involved in the manufacturing of biologics with several pharmaceutical companies. Lonza entered into a partnership with Teva in 2009 to develop and manufacture biosimilars. In 2010, they made a deal with GlaxoSmithKline to manufacture therapeutic monoclonal antibodies. In 2014, Lonza entered into an agreement with Bristol-Myers Squibb to manufacture two biologic drugs. Lonza also manufactures Imbruvica for Pharmacyclics and Mydicar for Celladon. In 2015, Lonza contracted with Alexion to construct a new facility dedicated to Alexion manufacturing. In 2017, Lonza and Sanofi partnered to construct a new facility for production of biologics.[3]

In November 2019, Chairman Albert Baehny became both chairman and interim CEO of Lonza after chief executive officer (CEO) Marc Funk left after 9 months.[4] In November 2020, Pierre-Alain Ruffieux commenced his role as Chief Executive Officer[5] which ended at the end of September 2023, totaling 2 years and 11 months in the position of CEO. Chairman Albert Baehny became again, both chairman and interim CEO, as from October 2023.[6]

In May 2020, Moderna struck a manufacturing deal with Lonza to produce its (mRNA-1273) COVID-19 vaccine active ingredient while expanding sterile production and fill-finish activities to 500 million doses starting in 2021.[7] Production of the mRNA bulk vaccine started in January 2021, soon after an official visit by Swiss Federal Councilor Alain Berset. Lonza Group was responsible for the global production of two-thirds of the raw materials for the Moderna vaccine at combined U.S. and Swiss facilities.[citation needed]

In May 2024, Jean-Marc Huët was elected Chairman following the retirement of Albert Baehny, who had held the position of Chairman and interim CEO.[8] In July 2024, Wolfgang Wienand commenced his role as CEO of Lonza.[9]

Business operations

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As of 2023, Lonza had over thirty development and manufacturing sites located in countries including Switzerland, the United States, the United Kingdom, Belgium, Spain, France, Mexico, Brazil, Japan, India, China and Singapore.[10]

The presence in India was established in Genome Valley, where ground was broken in 2011.[11][12][13] In 2018, Lonza opened a 300,000 square feet (28,000 m2) facility focused on cell and gene therapy in the United States in Pearland, Texas (a suburb of Houston).[14] In October 2024, the company completed the acquisition of the Genentech biologics manufacturing site in Vacaville, California, from Roche.[citation needed]

As of 2023, the company employed approximately 18,000 people across more than 30 locations.[15][16]

In 2024, Lonza announced plans to streamline its operations by exiting the capsules and health ingredients sector.[17] The decision follows a decrease in demand for pharmaceutical supplies after the COVID-19 pandemic. While the shift is expected to result in non-cash write-downs, analysts believe it will enhance Lonza’s growth prospects and financial stability.[18] The divestment process, targeting a segment responsible for 17% of the company’s 2023 revenue, will begin this year. Lonza intends to focus on its core business as a contract development and manufacturing organization (CDMO).[19] Notably, the company is the global leader in producing monoclonal antibodies, a key technology behind new Alzheimer’s treatments. Bernstein analyst Justin Smith praised the move as a step toward “operational simplification,” highlighting Lonza’s new business focus on three platforms: integrated biologics, advanced synthesis, and specialized modalities.[citation needed]

References

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  1. ^ a b c d e f "Annual Report 2023" (PDF). Lonza Group. Retrieved 10 June 2024.
  2. ^ Eschenmooser, Walter (June 1997). "100 Years of Progress with LONZA". CHIMIA. 51 (6): 259–269. doi:10.2533/chimia.1997.259. S2CID 100485418.
  3. ^ "Company History". Company Profile. Retrieved 2018-04-15.[self-published source]
  4. ^ "Lonza leader Marc Funk quits after just 9 months as CEO". FiercePharma.
  5. ^ "Lonza Welcomes New Group Chief Executive Officer Pierre-Alain Ruffieux". Lonza.com.
  6. ^ "Ad Hoc announcement pursuant to Art. 53 LR". 18 September 2023. Retrieved 20 September 2023.
  7. ^ Taylor, N. (Aug. 2020). Moderna scaling up ex-US COVID-19 vaccine capacity as EU deal nears. BioPharma-Reporter.com. Retrieved 23 September 2020.
  8. ^ Feldges, Dominic (5 June 2024). "Auch Historiker können Topmanager werden: Jean-Marc Huët schafft es erst bei Heineken und nun bei Lonza ins Präsidium". Neue Zürcher Zeitung.
  9. ^ Hotz, Michael (2 April 2024). "Neuer Lonza-Chef: Vom Fechtprofi an die Spitze". Handelszeitung.
  10. ^ "Fact Sheet". Company Profile. Lonza. Retrieved 2018-04-15.[self-published source]
  11. ^ "Lonza to invest Rs 250 cr in Genome Valley". Business Standard. India. 25 September 2010. Retrieved 2018-04-15.
  12. ^ "Lonza Group to set up a bio pharma unit at Genome Valley". ibis. Retrieved 2018-04-15.
  13. ^ "Lonza provisionally allotted 30 Acres of land in the "Genome Valley", Hyderabad (India)" (Press release). Lonza. 29 May 2009.[self-published source]
  14. ^ Philippidis, Alex (10 April 2018). "Lonza Opens Cell and Gene Therapy Facility in Pearland, TX". GEN News Highlights. Genetic Engineering & Biotechnology News. Retrieved 2018-04-15.
  15. ^ "About Us". Lonza. Retrieved February 6, 2023.
  16. ^ "Lonza Number of Employees". Macroaxis. Retrieved February 6, 2023.
  17. ^ Demetz, Isabel (12 Dec 2024). "Lonza seeks deals as it exits health and ingredients to focus on contract development". Reuters.
  18. ^ Kansteiner, Fraiser (2024-12-12). "Lonza aims to shed capsules business, restructure CDMO offerings". www.fiercepharma.com. Retrieved 2025-01-02.
  19. ^ "Lonza to exit capsule business". Chemical & Engineering News. Retrieved 2025-01-02.
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