Lonza will begin selling its specialty ingredients unit (LSI) in the second half of 2020 as it focuses on its drugs business that is making Moderna's prospective vaccine for the COVID-19. LSI carve-out is nearing completion, with some activities left to undertake. In this context, Lonza has decided to divest the business through a sale process, to be initiated in H2, said Albert Baehny, Chairman.

 

"Once the sale is completed, Lonza will become a pure-play pharma and biotech company," Baehny said in a letter to shareholders. "The sale will provide an opportunity to focus our attention and resources."

 

Lonza' first-half profit rose 22% to 478 million Swiss francs (406.08 million pounds) on rising demand from biotech customers. Sales rose 3.3% to 3.1 billion francs which is in line with analyst expectations. The strong results were driven by the Lonza Pharma Biotech and Nutrition (LPBN) Segment, which delivered 10.8%3 sales growth and a CORE EBITDA margin of 34.1%. The Lonza Specialty Ingredients (LSI) Segment delivered flat sales growth alongside an increased CORE EBITDA margin of 19.7%.

 

Baehny added that the technology transfer with Moderna on their mRNA vaccine project is complete, with the first small-scale batch expected to be delivered to its Portsmouth, New Hampshire, facility before month's end.

 

Lonza aims to finish a commercial production line in New Hampshire for Moderna's prospective vaccine a month earlier than its original December 2020 target.

 

If clinical tests deliver positive results and regulatory approval is received, we are ready to support the commercial manufacture of Moderna’s mRNA-based vaccine (mRNA-1273) with our global network of facilities, alongside our broad experience and expertise. We have also continued to invest in our LPBN capabilities to support all our customers in meeting the increasing demand for new therapies and vaccines, both now and beyond the pandemic.” said Baehny.