Lonza Outlines Restructuring Strategy and New Organizational Structure
At an investor update at the end of last week, Lonza has announced its "One Lonza" restructuring strategy, which aims to reorganize its CDMO business, simplify its operating model, enhance manufacturing and engineering, and expand its production footprint.
The company plans to exit the Capsules & Health Ingredients (CHI) business to focus on its core CDMO business, which will be structured into three new platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities.
Integrated Biologics will advance Lonza’s integrated offering and will comprise mammalian and drug product services. Advanced Synthesis will combine hybrid chemistry and biology solutions and will comprise the former Small Molecules division and Bioconjugates. Specialized Modalities will develop and scale cutting-edge technologies including cell & gene technologies, mRNA, microbial, and bioscience. The new structure is scheduled to be operational from the second quarter of 2025.
According to Lonza, the strategy includes a focus on long-term customer relationships, cutting-edge science and technology, and a critical mass of assets in key regions. Lonza also wants to analyze the possibility of bolt-on mergers and acquisitions (bolt-on M&A) and take an unbiased view of organic and inorganic opportunities for future growth.
Lonza CEO Wolfgang Wienand commented: “Since I joined Lonza in July 2024, I have spent time reviewing the business with the leadership team and identifying areas with unique strengths as well as areas where we can optimize value.[…] The strategy reflects our ambition to become a pure-play CDMO business. This will allow us to achieve and maintain leadership across modalities with high therapeutic and commercial value, while pioneering the manufacturing technologies of the future.”
