Microbial control business boosts 2010 performance at Lonza
Increases pipeline of promising products through new contract signings
Swiss pharmaceuticals industry supplier Lonza delivered a robust business performance in 2010, helped by strong growth in its microbial control business.
Overall, sales increased 3.3% to CHF2680m and net profit by 10.4% to CHF284m at constant exchange rates.
The company said it had continued to benefit from pharmaceutical and biotechnology companies outsourcing more of their manufacturing and development activities. It had improved capacity utilisation, particularly in biological manufacturing during the second half of the year.
The firm’s project pipeline was increased significantly through the signing of new contracts and multi-product deals, especially in chemical and biological manufacturing and cell therapy. However, these positives were offset by slower pharmaceutical product approvals and rising raw material costs, which affected the profitability of the company’s non-pharma businesses.
The strength of the Swiss franc, erratic raw material pricing and less predictable regulatory approvals will continue to cause volatility, Lonza said.
The Lonza Board of Directors is proposing to elect Jean-Daniel Gerber as a new member at the next annual general meeting on 12 April, following his retirement from government service in March.
Gerber has held various roles in the Swiss government, including chairing the State Secretary for Economic Affairs (SECO) since 2004. From 1993 to 1997 he was executive director and dean (1997) of the Board of the World Bank Group.
The Board of Directors will increase from six to seven members.