Lonza is accelerating deeper into its transformation as a pure-play CDMO, posting a strong Q1 2026 performance driven by booming biologics demand, rapid project ramp-ups and expanding commercial manufacturing agreements.
In its qualitative Q1 2026 business update, the Swiss life sciences giant said results were tracking ahead of expectations for the year, with growth set to be heavily weighted toward the first half of 2026 due to campaign timing, product releases and planned site shutdowns later in the year.
Integrated Biologics emerged as a major growth engine, fueled by rising contributions from expansion projects and strong execution across manufacturing sites.
Advanced Synthesis also delivered strong momentum as newly added 2025 growth projects ramped up faster than expected, supported by favorable product mix dynamics, operational gains in Small Molecules and Bioconjugates, and early batch releases.
Specialized Modalities posted significant gains against a softer prior-year comparison, helped by strength in the Microbial business and continued demand in Bioscience.
The company said ramp-up activities at its large-scale mammalian facility in Visp are now in advanced stages, with full commercial operations scheduled to begin in mid-2026.
Construction is also progressing at its commercial-scale aseptic drug product facility in Stein and at a major bioconjugation facility in Visp, with launches expected in 2027 and 2028 respectively.
Meanwhile, in Vacaville, Lonza has begun initial investments aimed at increasing operational flexibility, as customer demand for its large-scale mammalian manufacturing capacity continues to surge.
The company also strengthened its commercial pipeline during the quarter, securing multiple integrated drug substance-drug product contracts and extending its manufacturing agreement for ZYNTEGLO.
But the headline move came in March, when Lonza signed a landmark deal to divest its CHI business to Lone Star Funds — completing what it called the final and most significant step in its transformation into a pure-play CDMO.
The transaction includes CHF 1.7 billion in upfront proceeds, a retained 40% stake and preferential participation in a future exit. Lonza said the deal would unlock capital to fund aggressive organic expansion plans and targeted bolt-on acquisitions.
The company also confirmed it will return CHF 500 million to shareholders through an expedited share buyback program once the CHI transaction closes, which is expected in Q3 2026.
At the same time, Lonza finalized the sale of several additional non-core assets, including Personalized Medicines, the Cocoon Platform, the MODA software platform and its small molecules micronization site in Monteggio, Switzerland.
Following the restructuring, Lonza said its three core business platforms — Integrated Biologics, Advanced Synthesis and Specialized Modalities — are now operating as a fully integrated CDMO organization powered by the Lonza Engine platform.
Looking ahead, the company reaffirmed its full-year 2026 guidance, forecasting 11–12% CER sales growth and CORE EBITDA margins above 32%.
Lonza also warned that foreign exchange pressures — primarily linked to the weakening U.S. dollar — are expected to create an approximately 3% sales growth headwind in 2026, though the company said margins should remain largely protected through natural hedging and financial risk management programs.
Beyond 2026, Lonza said it expects to sustain low-teens CER sales growth over time, with CORE EBITDA growth continuing to outpace revenue expansion.
