A CDMO business of a certain size, sales and profitability might be expected to have a good prognosis but Lonza has had to cut its FY guidance for two reasons: the pandemic-related boom of taking additional food supplements has dried up faster than expected and venture capital has become somewhat unforthcoming given the higher level of interest rates.
The cut to the margin guidance is more severe than the top-line reduction. The question is what percentage of the new capacity will be utilized ....
21 Jul 2023
Some dark clouds in the CDMO sky
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Some dark clouds in the CDMO sky
- Published:
21 Jul 2023 -
Author:
Martin Schnee -
Pages:
4 -
A CDMO business of a certain size, sales and profitability might be expected to have a good prognosis but Lonza has had to cut its FY guidance for two reasons: the pandemic-related boom of taking additional food supplements has dried up faster than expected and venture capital has become somewhat unforthcoming given the higher level of interest rates.
The cut to the margin guidance is more severe than the top-line reduction. The question is what percentage of the new capacity will be utilized ....