Lonza Expects Solid Growth in 2011, 2010 Net Up 79%

Swiss drugs industry supplier Lonza said on Wednesday it expects solid growth in 2011 after meeting forecasts with a 79 percent rise in full-year net profit. Net profit at the group rose to 284 million Swiss francs ($299.9 million) as better capacity utilization helped offset the negative impact of the strong Swiss franc and high raw material prices.

"Lonza's increased financial flexibility will open up expansion opportunities in our life-science-focused value chain," the Basel-based group said in a statement.

Lonza, which has moved away from specialty chemicals to focus on higher-margin pharmaceutical ingredients, is battling currency headwinds as well as drug approval delays.

But some analysts believe the group has strong long-term growth prospects as it is set to benefit from its presence in the field of biosimilars - generic copies of biotech drugs used to treat complex diseases like cancer.