Investing.com -- Lonza Group AG (SIX:LONN) said Friday it doesn’t foresee a significant financial hit from potential tariffs and reaffirmed its full-year outlook for its contract development and manufacturing segment.
The Swiss healthcare manufacturing group reiterated that it expects sales growth at its contract development and manufacturing organization (CDMO) business to be close to 20% at constant exchange rates, with a core EBITDA margin nearing 30%.
Its capsules and health ingredients division is also recovering as planned. The company anticipates this business will return to low- to mid-single-digit sales growth at constant exchange rates in 2025, with a core EBITDA margin trending toward the mid-twenties.
Lonza sees the business "on track to get back to its historical growth and margin patterns in line with the mid-term guidance," it said in the release.
"Lonza does not anticipate a material financial impact from potential tariffs on its products and services sold or raw materials purchased for own manufacturing, including in the event that tariffs are implemented on pharmaceuticals," the company said, adding that it continues to monitor the situation.
The group also said it saw solid contract activity across its CDMO business, highlighted by strong customer interest in its Vacaville site, where it secured a third long-term agreement and is engaged in further contract discussions.