Swiss drug contract manufacturer Lonza said first-half core earnings gained 16.5 per cent on strong demand from biopharmaceutical companies.

First-half core earnings - adjusted for interest, tax, depreciation and amortisation - (Ebitda) rose to 987 million Swiss francs (S$1.4 billion), it said in a statement on Friday (Jul 22), beating an analyst consensus of about 940 million francs.

For this year, Lonza said it was still targeting “low to mid-teens” sales growth, when excluding currency swings, as well as an improvement in the core Ebitda margin that is consistent with a 2024 goal of 33 per cent-35 per cent, up from 30.8 per cent in 2021.

The company is in a multi-year investment push to assist drug developers as they bet on new therapeutic proteins as well as cell and gene therapies. Under the plan, Lonza earlier this month announced a 500 million franc investment in Switzerland to fill biotech drugs into vials.

The company, which is a key supplier of vaccine maker Moderna, is banking on long-term growth in the biopharmaceuticals sector well beyond the pandemic. REUTERS