Lonza launches new operating model with three integrated CDMO business platforms
Lonza, the world’s largest contract development and manufacturing organization (CDMO) by revenue, has officially implemented a new operating model aimed at simplifying and streamlining its organizational structure.
Under its “One Lonza” strategy, the company has positioned itself as a pure-play CDMO. Unveiled in December 2024, the new operating model is centered around the Lonza Engine, a framework built on five core components: high-performance teams, scientific and digital capabilities, strong customer partnerships, execution excellence, and plug-and-play integration. The updated structure is now live and reflected on Lonza’s website.
The previous divisional setup has been replaced with three new integrated CDMO business platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities. Each platform oversees multiple technology areas and eliminates the prior business unit layer, allowing for more direct oversight, according to Lonza.
The Integrated Biologics platform, led by Gordon Bates, includes mammalian and drug product services. Advanced Synthesis, under Christian Seufert, combines Lonza’s former small molecules division and bioconjugates unit. Specialized Modalities, led by Daniel Palmacci, covers cell and gene technologies, mRNA, microbial, and bioscience.
According to Lonza, the streamlined organization will enhance scalability and operational execution, while also improving customer engagement through a unified go-to-market approach. The company also plans to strengthen its investment and integration capabilities as part of its broader goal to expand its multimodal offering. Group functions have been empowered under the new structure to better capitalize on future growth opportunities.
Meanwhile, Lonza’s Capsules & Health Ingredients (CHI) business will remain in its current structure and is now led by Jean-Christophe Hyvert. The company said it intends to divest CHI when the timing is right, while maintaining profitability and customer service.
Although Lonza’s CDMO business delivered strong commercial and operational performance in 2024, the company in January 2025 reported its CHI business was hit with “market headwinds” causing sales to decline 6.6% as a result of “soft demand” for pharma capsules due to customer destocking. Higher-than-expected margins in the company’s biologics, small molecules, and cell and gene segments were partly offset by weaker-than-expected margins in Lonza’s CHI business. However, Lonza expects CHI sales to return to growth in 2025.
Lonza will release restated 2024 financials in June to provide a clearer comparison for its July half-year results and will share a qualitative Q1 2025 update in May using the former reporting structure.