Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How do you view the operational performance and margin for small molecules in 2025, considering capacity additions? A: Wolfgang Wienand, CEO, stated that the small molecules business performed strongly in 2024 and is expected to continue this trend in 2025. It will contribute to both top-line growth and margin expansion, although specific divisional details won't be shared.
Q: Can you provide more color on the seasonality and contribution from mammalian ramp-up in H1 2025? A: Wolfgang Wienand, CEO, mentioned that H2 is expected to be stronger than H1 in terms of both top line and core EBITDA. This is due to important assets in biologics and small molecules coming on stream in H1, with stronger contributions expected in H2.
Q: With big pharma cutting down on early-stage projects, how does Lonza view its exposure to preclinical and early-phase projects? A: Wolfgang Wienand, CEO, noted that despite some big pharma companies reducing early-stage projects, Lonza sees a record high in the number of molecules in development. Increased biotech funding and strong incoming requests for proposals indicate no decline in opportunities for Lonza.
Q: Can you explain the increase in core EBITDA loss in the corporate segment? A: Philippe Deecke, CFO, explained that the corporate segment is volatile, with fluctuations due to factors like hedging, pension adjustments, and power agreements. The increase is not indicative of a new base but rather reflects these variable elements.
Q: What is the size and interest level for the Vacaville facility contracts? A: Wolfgang Wienand, CEO, shared that there is strong interest in the Vacaville facility, with regular customer visits and ongoing negotiations. The goal is to replace outgoing Roche business over the next few years, maintaining revenue levels while expanding margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.