Sub-theme: Pharmaceutical therapies
Lonza is a Swiss chemicals contract development and manufacturing company (CDMO) operating across small molecules, biologicals, cell and gene, capsules, and health ingredients. CDMOs enable the use of state-of-the-art technology and equipment, bring scale, expertise and excellence to pharmaceutical manufacturing. CDMOs enable customers to deliver new, innovative medicines that help treat a wide range of diseases and accelerate the process to achieve commercial scale production. This results in lower cost and more effective medicines.
Impact Score: 11%
Over half of drug development is now aided by CDMOs, meaning a wide applicability across the pharmaceutical industry and within healthcare, and Lonza is the largest CDMO in the market. The company is purely focused on the manufacturing part of the value-chain with the key drug development steps taking place elsewhere. drugs account for a relatively small proportion (10-20%) of total healthcare spending.
Fundamental Quality: 74%
Lonza is a very high-quality company that is set to benefit from a growing trend towards outsourcing manufacturing. Its competitive position is also protected by the increasing complexity of biologics which increase the barriers to entry.
(per £1m invested in this company FY23)
- Animal testing of pharmaceuticals (not done by Lonza)
- Manufacturing produces medical waste including plastics and toxic chemicals
- Manufacturing requires a substantial amount of water
