Lonza offloads specialty ingredients unit in $4.7B sale to Bain Capital, Cinven in consolidation around biopharma - Endpoints News

With the bio­phar­ma CD­MO mar­ket on a years­long up­swing, gi­ant Lon­za has looked to re­work the game plan to keep its gold­en goose pro­duc­tive. Af­ter tin­ker­ing with its cap­sule of­fer­ings, the Swiss man­u­fac­tur­er will now of­fload an in­gre­di­ents unit that was once one of its busi­ness pil­lars.

Lon­za will sell its spe­cial­ty in­gre­di­ents busi­ness to Bain Cap­i­tal and UK pri­vate eq­ui­ty firm Cin­ven for $4.67 bil­lion as the con­tract man­u­fac­tur­er con­tin­ues to con­sol­i­date its busi­ness around bio­phar­ma work and cap­sules, the com­pa­ny said Mon­day.

Bain and Cin­ven will take over Lon­za’s 17 in­gre­di­ents sites around the world com­pris­ing 2,800 work­ers, Lon­za said. The unit busi­ness pro­duces mi­cro­bial con­trol so­lu­tions for hy­giene and per­son­al care prod­ucts as well as spe­cial­ty chem­i­cals and com­pos­ites for the elec­tron­ics, aero­space, food and agro­chem­i­cal in­dus­tries.

The sale is ex­pect­ed to close in the sec­ond half, and Lon­za said in a state­ment it was hap­py to work with Bain and Cin­ven giv­en their “strong ex­pe­ri­ence in the in­dus­tri­als sec­tor and an es­tab­lished track record of suc­cess­ful in­vest­ments in port­fo­lio com­pa­nies.”

Of­fload­ing one of two pil­lars of its cen­tral busi­ness comes amid Lon­za’s grow­ing of­fer­ings in the CD­MO space for bio­phar­ma and fol­lows a re­work­ing of the firm’s cap­sule busi­ness.

In Jan­u­ary, Lon­za of­floaded two lipid cap­sule pro­duc­tion sites in Ploërmel, France, and Ed­in­burgh, UK, as part of a plan to ex­it the phar­ma­ceu­ti­cal cap­sules space while main­tain­ing its mar­ket foothold in con­sumer health and nu­tri­tion. Lon­za said it would cease pro­duc­tion of soft­gels and liq­uid-filled hard cap­sules in the phar­ma mar­ket al­to­geth­er with the sales — with the ex­cep­tion of hold­ing on to ca­pac­i­ty for fea­si­bil­i­ty stud­ies.

The com­pa­ny plans to con­tin­ue churn­ing out Li­caps-based prod­ucts, or lipid cap­sules, out of fa­cil­i­ties in Col­mar, France; Green­wood, South Car­oli­na; and Sagami­hara, Japan, ex­clu­sive­ly for con­sumer health and nu­tri­tion.

How­ev­er, cap­sules in con­sumer health and nu­tri­tion are very much still in the pic­ture. Lon­za re­cent­ly in­vest­ed $95.8 mil­lion to ex­pand its cap­sule pro­duc­tion ca­pac­i­ty by 30 bil­lion an­nu­al­ly across eight of its sites.

But ul­ti­mate­ly, CD­MO work will be­come an even greater fo­cal point for Lon­za’s growth plan as Covid-19 out­sourc­ing projects, in par­tic­u­lar, keep dri­ving new rev­enue streams. In De­cem­ber, Lon­za tout­ed its plan to in­crease pro­duc­tion ca­pac­i­ty by 30% by the first half of 2022, fo­cus­ing on bio­con­ju­ga­tion — a process that can de­vel­op more com­plex pro­tein ther­a­peu­tics.

It will add a rough­ly 16,100-square-foot ex­pan­sion to its fa­cil­i­ty in Visp, Switzer­land, for both clin­i­cal and com­mer­cial sup­ply, and will build a 53,800-square-foot sup­port build­ing to in­crease stor­age and oth­er sup­port­ing in­fra­struc­ture. The CD­MO al­so has a co-man­u­fac­tur­ing deal on the ta­ble with Mod­er­na for its mR­NA-based Covid-19 shot, one of two vac­cines ap­proved for emer­gency use in the US.

Let's block ads! (Why?)

"ingredients" - Google News
February 09, 2021 at 03:30AM
https://ift.tt/2MNqRSn

Lonza offloads specialty ingredients unit in $4.7B sale to Bain Capital, Cinven in consolidation around biopharma - Endpoints News
"ingredients" - Google News
https://ift.tt/2Qstat1
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini