CDMO Industry Sees Mixed Results as Lonza Rebounds and Samsung Bio Maintains Growth

In a landscape marked by post-pandemic challenges, contract development and manufacturing organizations (CDMOs) are navigating a complex market with varying degrees of success. Recent financial reports from industry leaders Lonza and Samsung Biologics paint a picture of resilience and strategic adaptation in the face of changing market dynamics.

Lonza's Impressive Turnaround

Swiss CDMO Lonza has staged a remarkable comeback, posting a 19% increase in sales at constant currencies to 3.6 billion Swiss francs ($4.5 billion) for the first half of 2025. This resurgence comes after a period of stagnation and marks a significant milestone in the company's turnaround strategy under new CEO Wolfgang Wienand.

The core CDMO business was the primary driver of growth, contributing 3.1 billion francs ($3.9 billion) – a 23% increase compared to the same period in 2024. A key factor in this success was the acquisition of Roche's mammalian drug substance plant in Vacaville, California, which is expected to add around half a billion Swiss francs in sales this year alone.

However, Lonza's performance was not uniformly positive across all sectors. The company's specialized modalities, including cell and gene technologies and microbial operations, underperformed expectations. Additionally, sales from the capsules and health ingredients (CHI) unit remained flat, a division Lonza plans to divest in the future.

Samsung Biologics Continues Steady Growth

In contrast to Lonza's rebound, South Korea's Samsung Biologics has maintained its upward trajectory, reporting a total sales of approximately 1.29 trillion Korean won ($936 million) for the second quarter of 2025. This represents an 11% increase over the same period last year, continuing the company's streak of consistent growth.

CEO John Rim attributed this success to the expansion of Samsung Bio's antibody-drug conjugate (ADC) operations, the introduction of research services through Samsung Organoids, and the opening of a fifth production facility in Korea. The company's strategy of securing major manufacturing contracts with global pharmaceutical companies has been a key factor in sustaining its growth momentum.

Strategic Shifts and Industry Trends

Both Lonza and Samsung Biologics are making strategic moves to focus on their core CDMO businesses. Lonza's "One Lonza" restructuring initiative, launched in December, emphasizes the company's manufacturing operations and sets the stage for the divestment of its CHI unit. Similarly, Samsung Biologics plans to sell its biosimilars subsidiary, Samsung Bioepis, to concentrate on its pure-play CDMO capabilities.

These strategic decisions reflect a broader industry trend of CDMOs streamlining their operations to capitalize on the growing demand for contract manufacturing services. However, both companies acknowledge potential challenges ahead, including the evolving biotech funding environment, regulatory developments in the US, and the impact of trade policies on emerging technologies like cell and gene therapy.

As the pharmaceutical industry continues to evolve post-pandemic, the contrasting yet successful strategies of Lonza and Samsung Biologics highlight the importance of adaptability and focused growth in the competitive CDMO landscape.