Lonza Group, a Swiss company specializing in pharmaceuticals and nutrition, reported on Thursday that its third-quarter results align with its fiscal 2024 projections. The company anticipates an uptick in sales during the fourth quarter, attributed to the schedule of batch releases.
The Biologics division has shown strong momentum, fueled by high commercial demand, and there has been a rebound in early-stage services. In the Small Molecules sector, demand for commercial products remains robust, driving strong operational performance. This division is increasingly focusing on high-value, complex small molecules.
The Cell & Gene division has continued to perform well in Cell & Gene Technology, though the Bioscience segment has been affected by market challenges.
Conversely, the Capsules & Health Ingredients division delivered a subdued performance, reflecting ongoing de-stocking trends in pharmaceutical hard capsules. Lonza has implemented productivity measures that have somewhat mitigated the impact on margins due to reduced demand and asset utilization.
Looking forward to fiscal 2024, Lonza reaffirmed its outlook for stable year-on-year sales in constant exchange rates (CER), with a CORE EBITDA margin in the high 20s. For the entire year, Lonza anticipates a significant volume of contract signings across all contract development and manufacturing organization (CDMO) segments.
