Marc Funk resigned as CEO of Lonza on Nov. 12, citing personal reasons, after only eight months at the helm of the Swiss CDMO. The news took most observers and investors by surprise, and the company’s share price gave up 4.5%.

Chief operating officer of the company’s Pharma & Biotech segment for seven years, Funk took over as CEO from Richard Ridinger at the beginning of March 2019. He will continue in the job until January 2020, when he will be succeeded by Lonza’s board chairman Albert Baehny as the search for a new chief executive continues.  Board member Christoph Maeder meanwhile has been appointed lead independent director.

Funk is credited with spearheading the expansion of Lonza’s role in biopharma, in particular its gene therapy capabilities. The smaller Specialty Ingredients business (LSI) has lagged, and in July 2019, the company announced plans to separate the two businesses, with LSI remaining wholly owned by the Swiss parent.

The separation process is due to be completed by mid-2020, with 130 jobs being shed. Lonza said earlier that the proposed layoffs would be limited to LSI and support functions without impacting the newly realigned Pharma Biotech & Nutrition segment.

In the first half of 2019, LSI reported a sales decline in of 3.8%. However, the segment’s core EBITDA margin improved by 20 basis points to 19%, despite what management said were raw material price increases, supply chain challenges and negative cyclical impacts.

On the back of 11% sales growth, Pharma Biotech & Nutrition, including the Consumer Health & Nutrition business transferred from Specialty Ingredients, increased its core EBITDA by nearly 10%.

Among other strategic projects, over the past 12 months, Lonza has opened what it calls the world's largest site dedicated to the production of cell and gene therapies at Pearland, Texas, in the US. In summer, it expanded its bioconjugation facilities in Visp, Switzerland.

Given the relatively solid operational backdrop, analysts expressed doubt that problems at the company were a factor in the CEO’s early departure, though some speculated that there may have been differences between Lonza’s management and board. Some noted that Ridinger’s departure early this year was unexpected; the German executive had been in the position for seven years, however.