Lonza cites biotech funding slowdown as it lowers sales outlook for the year

Con­tract man­u­fac­tur­er Lon­za tem­pered its sales out­look for the rest of the year due in part to low­er-than-ex­pect­ed growth in the ser­vices it pro­vides to biotechs amid a slow­down in fund­ing.

Lon­za on Fri­day re­port­ed sales of CHF 3.1 bil­lion ($3.5 bil­lion) in the first half of the year, up 3.2% com­pared to CHF 2.98 bil­lion ($3.4 bil­lion) in the first half of last year. The com­pa­ny at­trib­uted the growth to its com­mer­cial CD­MO ser­vices, its bi­o­log­ics di­vi­sion and small mol­e­cule pro­duc­tion. But sales were al­so chal­lenged by a de­cline in de­mand for nu­traceu­ti­cal cap­sules and “biotech fund­ing con­straints” that neg­a­tive­ly af­fect­ed its ear­ly-stage busi­ness.

To read Endpoints News become a free subscriber

Unlock this article instantly, along with access to limited free monthly articles and our suite of newsletters

SIGN UP LOG IN