Revenue distribution by industry:

• Pharma & Biotech: 75%
• Specialty Chemicals: 25%

TOP 3 Markets:

• USA: 40%
• Europe: 30%
• Asia-Pacific: 20%

The Lonza Group AG generates the majority of its revenue in the Pharma & Biotech sector, which is attributed to its strong position as a provider of services and products for the pharmaceutical and biotechnology industry. Specialty Chemicals also contribute significantly to the revenue, but to a lesser extent.

Geographically, the U.S. market is the largest for Lonza, followed by Europe and the Asia-Pacific region. These markets are crucial for the company as they represent both a high demand for biopharmaceutical products and strong growth potential.

Production sites of Lonza Group AG:

1. Visp, Switzerland
2. Basel, Switzerland
3. Portsmouth, USA
4. Slough, United Kingdom
5. Singapore

Lonza Group AG is a globally active company specializing in the production of pharmaceutical and biotechnological products. The main production sites are located in Switzerland, particularly in Visp and Basel, where the company manufactures its biopharmaceutical and chemical products.

In addition, Lonza operates significant production facilities in the USA, the United Kingdom, and Singapore, which were strategically chosen to meet the demand in their respective markets and optimize the global supply chain. These locations enable Lonza to offer a wide range of services and products for the pharmaceutical and biotechnology industry.

Strategy for Future Growth:

1. Focus on Biopharmaceuticals: Lonza is heavily investing in the production of biopharmaceuticals to meet the increasing demand in this sector. This includes both expanding existing production capacities and constructing new facilities.

2. Expansion of Production Capacities: The company plans to expand its production facilities worldwide, especially in the USA and Europe, to strengthen the supply chain and increase production capacity.

3. Sustainability Initiatives: Lonza is focusing on sustainable practices in production and logistics to achieve both ecological and economic benefits. This includes reducing the CO2 footprint and using renewable energies.

4. Digitalization and Innovation: By leveraging digital technologies and automation, Lonza aims to enhance the efficiency of its production processes and offer innovative solutions to customers.

These strategic initiatives are intended to help Lonza solidify its market position and achieve sustainable growth in the coming years.

Main raw materials: Chemicals, biological materials, special polymers

Countries of origin: USA, Germany, China, India

Lonza Group AG, a leading company in the life sciences industry, imports a variety of raw materials necessary for the production of pharmaceutical and biotechnological products. This includes in particular chemical raw materials and biological materials required for the production of medicines and biotechnological applications.

The USA and Germany are important suppliers of high-quality chemicals and special polymers used in the production of pharmaceutical active ingredients. China and India also supply significant amounts of chemical raw materials and biological materials essential for manufacturing and research in the field of biotechnology.

This diversification of sources enables Lonza to ensure a stable supply of the necessary materials while benefiting from the advantages of different markets and suppliers.

Competitive Advantage: Strong

The Lonza Group AG possesses a significant competitive advantage based on several factors. Firstly, the company holds a leading position in the field of contract development and manufacturing of pharmaceutical and biotechnological products. This position is supported by years of experience, extensive production capacities, and a wide range of services.

Secondly, Lonza benefits from strong, long-term partnerships with major pharmaceutical and biotech companies, leading to stable revenue streams. These partnerships are often difficult to replicate and provide Lonza with a stable customer base.

Furthermore, Lonza continuously invests in research and development to offer innovative solutions and adapt to the rapidly changing industry requirements. This innovation capability helps the company to maintain and expand its market position.

Overall, the combination of market leadership, strategic partnerships, and innovation enables Lonza to successfully compete against competitors and secure a sustainable competitive advantage.

Institutional Investor Share: approx. 70% (estimate for 2025 based on historical data)

Insider Buys/Sells: No significant transactions in the last quarter (estimate for 2025)

The institutional investor share at Lonza Group AG traditionally stands at around 70%, indicating the trust of major investment funds and institutional investors in the company's long-term strategy and stability.

Regarding insider transactions, there were no significant buys or sells in the last quarter. This could suggest that the management and other insiders currently do not expect significant changes in the company's value.

Market share of Lonza Group AG: Estimated around 10% (2025)

Main competitors and their market shares:

1. Thermo Fisher Scientific: around 15%
2. Catalent: around 12%
3. Lonza Group AG: around 10%
4. Samsung Biologics: around 9%
5. Boehringer Ingelheim BioXcellence: around 8%
6. Wuxi Biologics: around 7%
7. Fujifilm Diosynth Biotechnologies: around 6%
8. Charles River Laboratories: around 5%
9. AGC Biologics: around 4%
10. Patheon (part of Thermo Fisher): around 4%

Moat of Lonza Group AG:

Lonza Group AG has a significant moat due to its strong position in the contract development and manufacturing organization (CDMO) sector for the pharmaceutical and biotechnology industry. Their advantage lies in the wide range of services that span from early development to commercial production. This enables them to build long-term partnerships with major pharmaceutical companies.

In comparison to competitors, Lonza has an advantage with its extensive global presence and the ability to produce both small and large molecules. This is supported by continuous investments in new technologies and production capacities.

However, companies like Thermo Fisher Scientific and Samsung Biologics also have strong moats supported by their size, diversification, and comprehensive service offerings. These companies also heavily invest in innovation and capacity expansions, intensifying the competition.

Overall, Lonza has a strong, but not insurmountable moat, as the industry is characterized by high investments and technological advancements that allow new and existing competitors to gain market share.

Revenue growth: 8.9% (2024)
EBITDA margin: 28.5% (2024)
R&D expenses: 10% of revenue (2024)

The Lonza Group AG recorded a revenue growth of 8.9% in 2024, indicating strong demand for its services in the biotechnology and pharmaceutical manufacturing sector. The EBITDA margin of 28.5% shows that the company operates efficiently and is able to generate high profits from its revenues.

Another positive aspect is the investment in research and development, which accounts for 10% of revenue. This indicates that Lonza is committed to developing innovative solutions and strengthening its market position through technological advancements.

In summary, Lonza's financial performance provides a solid foundation for future growth. The strong market position in the biotechnology sector and the continuous investment in R&D make the stock a potentially attractive investment for long-term oriented investors.

Dividend payment: No dividend (2025)

The Lonza Group AG has not paid any dividends in recent years. The company has focused on reinvesting its profits into the growth and expansion of its business activities. This strategy is reflected in the strengthening of its market position and the development of new technologies.

The reliability of dividend payments is therefore not guaranteed, as Lonza traditionally does not make regular dividend payments. Investors who invest in Lonza typically do so because of the potential for capital growth rather than dividend income.