India Pharma Outlook Team | Tuesday, 10 March 2026
Lonza has concluded an important agreement to sell its Capsules and Health Ingredients (CHI) unit to Lone Star Funds, a private equity investor, for CHF 2.3 billion (around USD 3 billion) to complete the strategic reorientation of the Swiss life sciences company to a pure-play contract development and manufacturing organization (CDMO).
The transaction involves CHF 1.7 billion (USD 2.2 billion) of up-front cash and Lonza will still have a 40 percent stake in the CHI business, which will enable the company to enjoy future value creation. The Swiss company will also be accorded special treatment in the exit of Lone Star from the investment.
Overall, when considering future sales and the involvement in the deal, Lonza believes that the undiscounted value of the deal will be more than CHF 3 billion (USD 4 billion).
The sale is also part of a wider portfolio overhaul of Lonza, which involves the sale of its other non-core businesses, such as its personalised medicines division and micro-micronisation facility in Monteggio, Switzerland.
Also Read: Lonza Secures Swissmedic Approval for Stein Facility
These actions are in line with the Lonza objective of concentrating on its core CDMO business, which is backed by its Lonza Engine system, which is a combination of advanced science, digital technology, and lean manufacturing.
Wolfgang Wienand, CEO of Lonza, remarked, “With the sale of CHI and the three other recent divestments, in less than two years we have reshaped our company and activated our vision of One Lonza as a pure-play CDMO.”
The sale proceeds will be utilized in organic growth, acquisition and share buyback, with Lonza targeting low-teens sales growth and an increase in margin. The deal is set to be finalized in the second half of 2026, under regulatory approvals.
