The price trend for Lonza Group Ag (LZAGY) has been bearish lately and the stock has lost 5.4% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street ...

Lonza Group Ag (LZAGY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The powe ...

Company Overview - Lonza Group Ag (LZAGY) currently has a Momentum Style Score of B, indicating potential for strong performance based on recent trends [3][12] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned well for future growth [4][12] Price Performance - LZAGY shares have increased by 4.88% over the past week, outperforming the Zacks Medical - Products industry, which rose by 0.94% during the same period [6] - Over the past month, LZAGY's price change is 27.37%, significantly higher than the industry's 4.7% [6] - In the last quarter, shares of LZAGY have risen by 9.64%, and over the past year, they have gained 27.13%, while the S&P 500 has moved -6.46% and 11.69%, respectively [7] Trading Volume - The average 20-day trading volume for LZAGY is 243,543 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, one earnings estimate for LZAGY has increased, while none have decreased, raising the consensus estimate from $1.87 to $1.89 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [10]

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 ...