Finance
Contract drug manufacturer Lonza forecasts slower sales growth for 2026
Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Lonza predicts 11-12% sales growth for its CDMO business by 2026, with higher growth in the first half and profit margins above 32%.
Jan 28 (Reuters) - Lonza, the world's largest contract drug manufacturer, on Wednesday set 2026 targets for its contract development and manufacturing organization (CDMO) business, expecting slower sales growth of 11% to 12% at constant exchange rates and for its core profit margin to expand to above 32% of sales.
The Swiss company added it expected sales growth to be higher in the first half of 2026 than in the second half.
In 2025, the CDMO business, which was split off from the capsule and health ingredients (CHI) business which Lonza is planning to sell, saw its sales grow 21.7% in constant currency to 6.5 billion Swiss francs ($8.5 billion).
Analysts were expecting sales in the core business to grow 20.7% to 6.49 billion francs, a poll compiled by Vara showed.
Lonza said sales growth was driven by a higher than expected contribution from its Vacaville site in California and good momentum across its mammalian, bioconjugates, small molecules, drug product and bioscience technology platforms.
The Basel-based group said its core profit margin, or ratio of earnings before interest, taxes, depreciation and amortisation to sales in the continuing business, was 31.6% in 2025, above the 30.7% expected by analysts.
The company also said it would propose a dividend of 5 francs per share, 25% higher than what was paid last year.
($1 = 0.7654 Swiss francs)
(Reporting by Bernadette Hogg and Orest Dovhan in Gdansk, editing by Milla Nissi-Prussak)
Sales growth refers to the increase in revenue generated by a company over a specific period, typically expressed as a percentage. It indicates the company's ability to expand its business and attract more customers.
Profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold (COGS). It reflects how efficiently a company is managing its expenses relative to its sales.
A financial projection is an estimate of future financial outcomes for a company based on historical data, market trends, and expected economic conditions. It helps businesses plan and allocate resources effectively.
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