Lonza’s recent building spree and contracts have the manufacturer looking positive as it enters the second half of the year.

According to Lonza’s financial report for H1, which was released on Friday, the Swiss manufacturer posted sales of CHF 3 billion, or $3.1 billion, granting them a total of 16.8% growth in sales.

The first half’s core EBIDTA for Lonza also rose 33.1% according to the company. The company is still targeting low to mid-teen sales and EBIDTA growth for the year.

Lonza said that despite the turbulent market in the first half of the year, the company was able to navigate the difficult waters.

In a statement emailed to Endpoints News, several factors contributed to growth in the first half of the year “including continuing healthcare demand for CDMO services and commercial capacity, alongside an internal focus on operational excellence,” the statement said.

Lonza is currently contracted to manufacture the Covid-19 vaccine for Moderna, and produce 300 million doses a year at its facility in the Netherlands.

Throughout the first half, the company also continued growing organically, investing around 28% of its sales in CAPEX. Lonza also plans to increase its cell and gene therapy offerings as well as the capsules market in the second half of the year.

Lonza’s recent building projects also contributed to the general growth in the first half. The company completed the expansion of its API development and manufacturing labs in Nansha, China, to extend its capabilities of producing high potency APIs, and expand manufacturing space. The company also completed building out a small molecules manufacturing site in Bend, Oregon.

But their most recent announcement, a $519 million large-scale commercial drug fill and finish facility in the town of Stein, Switzerland, has the company bullish on its prospects.

“We are pleased to have maintained a solid financial performance in H1 2022, thanks to the commitment and support of Lonza’s global employee community. As part of our planned CAPEX for the year, we have announced a landmark strategic investment in Biologics to build a new commercial fill and finish facility in Stein (CH). This will help us to meet customer demand for an integrated offering and deliver long-term value to our business,” said Lonza CEO Pierre-Alain Ruffieux in a statement.

The good news comes as other manufacturers in both Asia and Europe have been placing major investments in facilities and campuses all over the world as Lonza looks to keep up with the competition globally.

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