Swiss Contract Manufacturing Organization (CMO) Lonza has released its 2023 financial report, which includes plans to shut down two of its factories, one in the US and another in China. The report states that this decision is made “in the context of current market dynamics” and is part of efforts to optimize Lonza’s global biologics network. The closures of the ‘small-scale manufacturing facilities’ in Guangzhou and Hayward are scheduled to begin in the first quarter of 2024 and are expected to be completed by the first quarter of 2025. Despite the closures, Lonza will maintain a commercial sales organization for biologics in China.
This strategic decision comes on the back of a relatively strong financial year for Lonza, with the company reporting a 10.9% year-on-year (YOY) increase in revenue to CHF 6.7 billion (USD 7.76 billion). However, core EBITDA only saw a modest 0.2% YOY growth, reaching CHF 2 billion (USD 2.32 billion).- Flcube.com
