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Chemical business sold – Moderna supplier Lonza grows significantly in 2021 – News

26 January 20220

The “new” Lonza is significantly more profitable without the chemicals business, which has since been sold.
Legacy burdens are depressing the reported profit for the 2021 financial year.
The pharmaceutical supplier, which is known in Germany primarily for the vaccine order from Moderna, increased sales by 20 percent to CHF 5.41 billion, according to a communiqué.

The chemicals division LSI, which was sold mid-year, has already been factored out in the financial statements. Of this, CHF 851 million remained as operating profit (EBIT), after CHF 901 million in the previous year. Net profit fell to 677 million after previously 732 million.

Shareholders will nevertheless benefit from a dividend of CHF 3 per share, the same as last year.

Remediation of the toxic waste dump overdue

A “legacy” clouded the figures: the overdue clean-up of the Gamsenried toxic waste dump in the canton of Valais. With the half-year figures for 2021, Lonza had announced that it would tackle them.

“In its announcement, Lonza focuses on growth. The orders from the US vaccine manufacturer Moderna are partly responsible for this, but not only. Lonza also manufactures active ingredients for other pharmaceutical companies. It is unfortunate from the company’s point of view that the net profit could not keep pace with the impressive sales growth. The reason is contaminated sites. In the summer, the group set aside CHF 285 million for the clean-up of the Gamsenried toxic waste dump in Valais. But at the same time, Lonza has set its course for growth and sold the chemicals division. A look at the margins shows that the margins have improved in the newly established core business – legacy issues or not.”

Lonza had already set aside CHF 285 million for the generation project in the summer. Lonza believes the amount should cover the “majority” of the total cleanup costs.

Lonza has also been known to a broader public since the corona crisis. Because Lonza manufactures the active ingredient for the coveted vaccination of the US company Moderna at the main plant in Visp.