Lonza Group Ag (LZAGY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ofte ...

Following our update on Novartis and Roche , in a challenging momentum, we are back to comment on Lonza Group AG ( OTCPK: LZAGY , OTCPK:LZAGF ). On April 2, US President Trump communicated a significant increase in tariffsBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must ...

Core Viewpoint - Lonza Group has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Revisions - For the fiscal year ending December 2024, Lonza Group is expected to earn $1.57 per share, reflecting a 13.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Lonza Group has risen by 15.6%, indicating a consistent upward revision trend by analysts [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 1 places Lonza Group in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10]. Impact of Institutional Investors - Changes in earnings estimates significantly influence stock prices, as institutional investors adjust their valuations based on these estimates, leading to buying or selling actions that affect stock movements [4][5].

Financial Data and Key Metrics - Sales growth in H1 2024 was 1.8% YoY, reaching CHF 3.1 billion, with a core EBITDA margin of 29.2% [48] - Free cash flow for H1 2024 was CHF 296 million, driven by favorable customer funding and normalized inventory levels [11] - The company expects lower free cash flow in H2 2024 due to accelerated CapEx investments [11] - Core EBITDA margin decreased by 0.8 percentage points YoY, mainly due to lower COVID-related mRNA sales and weaker margins in the CHI division [52] Business Line Performance - Biologics division saw 7.3% sales growth YoY, with strong commercial demand and early-stage recovery signs [54][55] - Small Molecules division experienced lower-than-expected sales growth due to timing of customer campaigns, but maintained a solid core EBITDA margin of 33.6% [57][58] - Cell & Gene division declined 6.6% YoY, but underlying growth was 10% excluding the Kodiak termination impact [26] - Capsules & Health Ingredients (CHI) division faced headwinds from destocking in pharmaceutical hard empty capsules, with recovery expected in 2025 [60][62] Market Performance - The company signed significant new contracts in the CDMO business, including a key commercial supply agreement in the Cell & Gene division [49] - Strong interest in the Vacaville site acquisition, with the first letter of intent signed with a key customer [50] - The hard empty capsules market is expected to return to historical growth patterns by 2025, with a projected annual growth rate of 2% [30] Strategy and Industry Competition - The company is focused on expanding large-scale mammalian capacity, with the Vacaville acquisition set to double capacity [44] - Investments in ADC (antibody-drug conjugate) technology and Synaffix integration are driving early-stage interest and commercial demand [17][24] - The company is committed to ESG goals, aiming for 100% renewable electricity in US operations by 2026 [18] Management Commentary on Operating Environment and Future Outlook - Management expects flat sales growth in constant exchange rates and a core EBITDA margin in the high 20s for 2024 [16] - The company anticipates higher CDMO sales in H2 2024, driven by new HPAPI facility operations and recovery in early-stage funding [25][31] - Management remains confident in the long-term growth trajectory of the hard empty capsules market, despite short-term volatility [30] Other Important Information - The company was recognized by Ethisphere as one of the world's most ethical companies for the third time [9] - Board governance updates include the election of a new Chairman and the establishment of new committees focused on talent and leadership [32][65] Q&A Session Summary Question: Margin phasing in Biologics and Small Molecules divisions [71] - Margins in Biologics are expected to be lower in H2 due to less favorable product mix, despite higher sales [76] - Small Molecules margins will be impacted by ramp-up costs for the new Visp facility [72] Question: Long-term mammalian capacity and CapEx outlook [73] - The company believes current capacity is sufficient to meet demand, with no immediate plans for additional large-scale investments beyond Vacaville [44][100] Question: Impact of biotech funding on RFPs and contract signings [78] - Increased biotech funding has led to more early-stage RFPs, but it takes 6-9 months for funding impacts to reflect in financials [80] Question: Interest in Vacaville from new and existing customers [81] - The Vacaville site has attracted interest from both new and existing customers, with the first letter of intent already signed [50][82] Question: Pricing and volume trends in CHI division [84] - Pricing was a significant negative factor in H1, with roughly half of the decline attributed to volume and half to price [85] Question: Impact of BIOSECURE on customer conversations [88] - BIOSECURE has prompted strategic discussions about supply chains, but immediate impacts on business are not yet visible [89][111] Question: Yield improvements in Biologics division [93] - Yield improvements are gradual and tied to customer-specific processes, with no significant impact on H1 financials [94][117] Question: Outlook for ADC and conjugation offerings [139] - The ADC market is constrained, with strong demand for both early-stage and commercial capacities [151] - Synaffix technology is a key entry point for early-stage ADC customers, though its contribution to revenue is not yet significant [150][166] Question: CapEx investment priorities [162] - The company remains focused on commercial capacities, including conjugation and fill-finish, as outlined in previous strategic plans [163][175]

Business Use Only Half-Year Results 2024 Wolfgang Wienand, CEO Philippe Deecke, CFO 25 July 2024 Wolfgang Wienand Joins Lonza as CEO − Previously CEO of the Swiss CDMO Siegfried, SIX: SFZN (since 2019, from 2010 first Chief Scientific Officer, then Chief Strategy Officer), before at Evonik Industries − Working closely with the Executive Committee and the Board of Directors with a focus on priorities on execution and foundations for long-term success Lonza Half-Year Results 2024 Half-Year 2024 Group Overview ...

Financial Data and Key Metrics Changes - The company reported a softer Q1 group performance, with expectations for H1 to normalize and align with the full year trajectory, confirming a flat CER sales growth compared to the prior year and a CORE EBITDA margin in the high 20s, between 27% to 29% [5][14] Business Line Data and Key Metrics Changes - The Biologics division experienced good momentum despite a slower start in Q1, impacted by high delivery in Q4 of the prior year and campaign shifts [7] - The Drug Product Services business continued to grow but at a slower pace compared to previous years, with a key milestone reached in Q1 for the first commercial fill and finish program [8] - The Microbial business developed strongly, supported by new assets and solid demand [9] - The Small Molecules division saw strong commercial demand but was affected by biotech funding challenges, with expectations for a stronger H2 [10] - The Cell & Gene division delivered improvements in commercial and operational performance, with strong sales and customer interest [11] - The Capsules & Health Ingredients division faced softer sales and margin performance, particularly in the U.S. due to post-pandemic destocking [12] Market Data and Key Metrics Changes - The funding environment for biotech improved significantly, with around USD 23 billion in funding in Q1 2024, although customers remain cautious about spending [60] Company Strategy and Development Direction - The company is focused on growing its commercial offering while managing costs and driving operational excellence, with ongoing progress in growth projects such as the large-scale commercial drug product facility in Switzerland [6][14] - The integration of Synaffix into the licensing business is proceeding smoothly, with positive market feedback on the expanded offering [9] Management Comments on Operating Environment and Future Outlook - Management noted that the softness in Q1 was due to phasing of commercial batches and weaker demand in early discovery activities, but emphasized the strength in other business units [25][69] - The company remains cautious about the market recovery in the Capsules & Health Ingredients division and has made price concessions to maintain business with key customers [32] - Management expressed confidence in the visibility of contract deliveries, supporting the outlook for H1 and H2 [53] Other Important Information - The company is progressing with a share buyback program of up to CHF 2 billion, having repurchased CHF 1.3 billion of shares as of March 31 [13] - The appointment of Wolfgang Wienand as the new CEO was confirmed, set to commence in the summer [13] Q&A Session Summary Question: Phasing and growth trends - Management explained that Q1 softness was due to the phasing of commercial CDMO batches and a weaker start in Bioscience, with expectations for improvement in Q2 and H2 [19] Question: Market developments and fill and finish expansion - Management refrained from speculating on the acquisition of Catalent but acknowledged potential pressure on fill and finish capacity [27] Question: Vacaville acquisition status - The transaction is expected to close in the second half of 2024, with no contribution from Vacaville included in the 2024 guidance [30] Question: Capsules & Health Ingredients recovery - Management noted weakness in demand in pharma and cautious expectations for market recovery during 2024 [32] Question: Core definitions impact on segment EBITDA - Management indicated that the reporting change would not distort figures going forward, providing a new base for divisional EBITDA [34] Question: Small molecules campaign impact - Management stated that the impact of campaign timing would be marginal but positive in H2, with new HP API plant ramping up in Q4 [38] Question: Cell & Gene demand drivers - Demand is driven by both strong market interest and the number of programs progressing into later stages [40] Question: BIOSECURE Act impact - Management expressed uncertainty regarding the BIOSECURE Act's implementation and its potential impact on business [44][49] Question: Capacity normalization in the industry - Management did not observe a trend of capacity elimination in the industry, stating that closures were due to inefficiencies in specific plants [57] Question: Biotech funding recovery pace - Management noted that while funding has improved, there is a 6 to 9-month delay before any impact on revenues is expected [60] Question: Biologics EBITDA margin guidance - Management maintained that the Vacaville acquisition would be neutral to the overall margin guidance for 2028 [62] Question: New business contracts and backlog - Management reported signing CHF 10 billion in biologics and CHF 1 billion in small molecules contracts last year, with ongoing contracting but no specific backlog metrics shared [66]

JHVEPhoto Introduction The Lonza Group (OTCPK:LZAGF) is a chemical and biotech company providing high quality ingredients to the pharmaceutical industry, where it has been building and maintaining long-term relationships with its customer base. It recently started an aggressive expansion program in the CDMO space, where it acts as a third party manufacturer of drugs or components for drugs. Lonza continues to invest in growth and has outlined an ambitious plan to increase its revenue by a double-digit n ...

Albert Baehny - CEO ad Interim and Chairman of the Board of Directors Maxwell Smock - William Blair Charles Pitman - Barclays Conference Call Participants Patrick Rafaisz - UBS Thibault Boutherin - Morgan Stanley Yifeng Liu - HSBC Charlie Haywood - Bank of America At this time, it's my pleasure to hand over to Albert M. Baehny, CEO ad Interim and Chairman of the Board of Directors. Please go ahead, Sir. Let's start by taking a look at the group results. In 2023, we delivered sales of CHF6.7 billion, corresp ...

Lonza Group AG (OTCPK:LZAGY) Q2 2023 Earnings Conference Call July 21, 2023 8:00 AM ET Company Participants Pierre-Alain Ruffieux - CEO Philippe Deecke - CFO Conference Call Participants Richard Vosser - JPMorgan James Quigley - Morgan Stanley Vineet Agrawal - Citigroup Jo Walton - Credit Suisse Patrick Rafaisz - UBS Daniel Buchta - ZKB Charles Weston - RBC Capital Markets Daniel Jelovcan - Mirabaud Securities Peter Welford - Jefferies Paul Knight - KeyBanc Capital Markets Sebastian Bray - Berenberg M ...

Enabling a Healthier World Lonza Half-Year Results 2023 Pierre-Alain Ruffieux, CEO Philippe Deecke, CFO 21 July 2023 Lonza Contents Half-Year 2023 Group Overview Half-Year 2023 Financial Summary Half-Year 2023 Divisional Overview Concluding Remarks Q&A 2 Half-Year 2023 Group Overview Executive Summary1 – CHF 3.1 billion sales and 5.6% CER sales growth, corresponding to around 10% CER underlying sales growth² – CHF 922 million CORE EBITDA resulted in a margin of 30% – Good momentum in commercial CDMO busines ...