Lonza has announced a new organization structure for its CDMO business and announced it plans to exit its Capsules & Health Ingredients business. The company made the announcement last month (December 12, 2024). 

The moves are part of an overall company strategy for a simplified organizational structure and is based on four key initiatives: (1) focus on its CDMO business; (2) reshape its operating model; (3) elevate execution in manufacturing and engineering; and (4) expand through an impartial approach to buy and build.  

The organizational structure for its CDMO business will evolve from three divisions with nine underlying business units to a simplified set-up with three integrated business platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities. In the new structure, the business unit layer will be removed, and the three business platforms will directly manage multiple technology platforms. The simplified organization has been designed to enhance customer experience, provide scalability for future growth, and strengthen its multimodality offering, according to the company. This new structure will be operational from the second quarter of 2025.  

Integrated Biologics will comprise mammalian-based biomanufacturing and drug-product services. Advanced Synthesis will combine hybrid chemistry and biology services and will comprise the company’s former Small Molecules Division and bioconjugates. Specialized Modalities will include cell & gene-therapy technologies and offerings for mRNA, microbial, and bioscience.   

“The new organizational structure will further enable Lonza to capture growth opportunities through the empowerment of key group functions and improved execution capabilities, including a unified go-to-market approach and an increased focus on excellence in asset construction and operation,” said the company in a December 12, 2024, press release. “Lonza will also elevate the importance of bolt-on M&A [mergers and acquisitions] and take an impartial view on organic and inorganic opportunities for future growth.” 

In addition, Lonza announced that it has decided to exit its Capsules & Health Ingredients business at the appropriate time. A key part of establishing that business was its $5.5-billion acquisition of Capsugel in 2017. “This move is designed to enhance customer and shareholder value through an increased focus on the CDMO offering, which is Lonza’s core business,” said the company in its press release. “Next steps will be defined in 2025 to meet the interests of customers, employees, and shareholders.” 

The company’s overall strategy, called “Lonza One” reflects the company’s goal to become a pure-play CDMO and represents a major move by the company’s CEO, Wolfgang Wienand, formerly CEO of Siegfried Holding AG, a CDMO of drug substances and drug products, who took over the helm of Lonza in July 2024.  

 ”…[W]e 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,” said Wienand, in the company’s press statement. “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.” 

Source: Lonza