Lonza Shares Fall After Deutsche Bank Downgrade

Shares in Swiss drugs industry supplier Lonza fell over 4% on Monday after Deutsche Bank analysts downgraded the stock as they expect the strong Swiss franc and a tougher environment to weigh.

"We appreciate Lonza's strategy and underlying progress, but external headwinds are just too massive to be offset," analysts at Deutsche Bank said in a note. Deutsch Bank cut its rating to "sell" from "hold" and slashed its price target to 61 francs from 78 francs.

Fewer incremental cost savings in 2011 and a tougher environment as a result of rising raw material prices and very low approval activity from the Food and Drug Administration in the United States were also likely to hit Lonza, the analysts said.

Lonza Chief Executive Stefan Borgas warned last week the strong Swiss franc would be a major challenge for the Swiss economy in the next five years. The franc rose about 16% versus the euro last year.

"Upside risk might emerge from a weaker franc, new contract wins, accretive M&A, a higher FDA approval rate, an improved macro outlook, and less aggressive competition," the Deutsche Bank analysts said.

Company

Logo:

Lonza AG

Muenchensteinerstrasse 38
4002 Basel
Switzerland

Company contact







Whitepaper

Excellence in Pharmaceutical Distribution and The Critical Role of Good Distribution Practice (GDP)
Setting the Standard

Excellence in Pharmaceutical Distribution and The Critical Role of Good Distribution Practice (GDP)

Are you ready to elevate your pharmaceutical operations? Download our exclusive whitepaper and discover how compliance with Good Distribution Practice (GDP) is essential for the safety and integrity of pharmaceuticals.

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.

most read

Photo
21.03.2025 • News

What’s Next for Pharma Supply Chains?

Sudden shifts in demand, supply shortages and global collapse have put immense pressure on pharmaceutical logistics. To address these challenges, PHARMAP 2025 brings together industry experts to discover AI-driven supply chain optimisation, strategic logistics partnerships and digital solutions that enhance efficiency and resilience in the pharmaceutical supply chain.