Lonza to exit drug capsule business

Wolfgang Wienand, who joined Lonza as CEO in July, has begun to put his stamp on the Swiss drug services company. Lonza announced at an investor event that it plans to divest its Capsules and Health Ingredients (CHI) business. Although the segment is profitable, it no longer fits with Lonza’s core business as a contract development and manufacturing organization (CDMO), the company says in a presentation shared at the event. Sales in the CHI business fell 9.2% in the first half of 2024 to about $600 million. The company got into the capsule business in 2017 when it acquired Capsugel , a manufacturer of gelatin capsules, from the investment firm Kohlberg Kravis Roberts for $5.5 billion. Stock analysts at the investment firm William Blair say in a note to investors that the plan to divest CHI and other business restructuring “creates some moving parts in the near term, but it