Lonza cites biotech funding slowdown as it lowers sales outlook for the year
Contract manufacturer Lonza tempered its sales outlook for the rest of the year due in part to lower-than-expected growth in the services it provides to biotechs amid a slowdown in funding.
Lonza on Friday reported sales of CHF 3.1 billion ($3.5 billion) in the first half of the year, up 3.2% compared to CHF 2.98 billion ($3.4 billion) in the first half of last year. The company attributed the growth to its commercial CDMO services, its biologics division and small molecule production. But sales were also challenged by a decline in demand for nutraceutical capsules and “biotech funding constraints” that negatively affected its early-stage business.
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