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Lonza Restructures CDMO Business

Three new business platforms, Integrated Biologics, Advanced Synthesis, and Specialized Modalities, aim to create a unified organization.

By: Kristin Brooks

Managing Editor, Contract Pharma

At its Investor Update 2024, Lonza announced an organizational restructuring based around four key initiatives: Focus on the CDMO business; Reshape the operating model; Elevate execution in manufacturing and engineering; and Expand through an impartial approach to buy and build. The strategy aims to protect and enhance key Lonza business strengths, including cutting-edge science and technology for emerging and complex modalities, and a critical mass of assets in key strategic regions.
 
The organizational structure for the CDMO business will evolve from three divisions with nine underlying business units, to a One Lonza set-up with three integrated business platforms. In the new structure, the business unit layer will be removed, and the three business platforms will directly manage multiple technology platforms. The One Lonza organization aims to enhance customer experience, provide scalability for future growth and strengthen Lonza’s multimodality offering.
 
Integrated Biologics will comprise Lonza’s integrated offering and will comprise Mammalian and Drug Product Services. Advanced Synthesis will combine leading hybrid chemistry and biology services and will comprise the former Small Molecules division and Bioconjugates. Specialized Modalities scale cutting-edge technologies including Cell & Gene Technologies, mRNA, Microbial, and Bioscience. This new structure will be operational from 2Q25.
 
Lonza has also decided to exit the Capsules & Health Ingredients business at the appropriate time. This move aims to increase focus on the core CDMO business offering.
 
Wolfgang Wienand, CEO, Lonza, 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. Today, we have shared the plans for our One Lonza strategy, propelled by the Lonza Engine, and a revised organizational structure which will support our ambition to create long-term value for our customers and our shareholders. 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.”

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