Lonza’s Record Performance Sparks Investor Optimism and Valuation Questions

Swiss pharmaceutical services provider Lonza has delivered exceptional first-half 2025 results, prompting upward revisions to its annual forecasts. The company’s core biotechnology manufacturing operations demonstrated remarkable strength, though its soaring valuation presents investors with critical questions about sustainability.

Lonza reported impressive financial metrics for the first six months of 2025, with group sales reaching 3.6 billion Swiss francs. This represents a substantial 19 percent increase compared to the same period last year. Even more noteworthy was the company’s profitability, as adjusted EBITDA hit 1.1 billion francs with margins approaching 30 percent.

The Contract Development and Manufacturing Organization (CDMO) division emerged as the primary growth driver, recording a 23 percent revenue surge. This outstanding performance led management to upgrade their full-year CDMO growth projection to between... Read more...