LONDON: Swiss pharmaceutical supplier Lonza reaffirmed its 2024 outlook on Tuesday, giving early signs of an improvement biotech funding even as clinical demand Its biologics division witnessed a weak first quarter.

It said business performance in its biologics, small molecules and cell and genes businesses in the quarter was positive, while growth in its capsules and health ingredients unit was weaker than expected.

why is it important?

Lonza is the world’s largest contract manufacturer monoclonal antibodiesMade from genetically modified mammalian cells.

Technology is behind a new class of promising alzheimer’s drugs by such donanemab Eli Lillyand by lekembi Christian and Biogen,

Context

Lonza’s business was hit last year due to fewer early-stage ventures by drug developers. Outgoing CEO Albert Bahni, who will be replaced by Wolfgang Wienand this summer, said the company has already seen signs of recovery, but a clear rebound will likely not be seen until 2025.

Contract pharmaceutical manufacturer In March it raised its 2024-2028 sales guidance to a range of 12-15 percent per year, after it said it was buying one of the world’s largest manufacturing sites for biologic drugs in Vacaville, California, from drugmaker Roche. Will buy for 1.2 billion dollars.

Lonza’s rival Sandoz reported a slight decline in first-quarter sales as flat generics sales fell short of estimates.

what will happen next

Lonza expects to close the acquisition of the Vacaville site in the second half of the year.

It expects 2024 sales growth to be flat at constant exchange rates, with core earnings before interest, taxes, depreciation and amortization margins in the high twenty percent.

Lonza does not provide detailed results in its first and third quarter updates. It is due to deliver a detailed financial report for the first half of the year on July 25.

(Reporting by Chiara Holzhäuser and Tristan Veyt in Gdansk; Editing by Milla Nissi)