CDMOs Lonza and Samsung Biologics Report Strong Sales Growth in 2025

Swiss contract development and manufacturing organization (CDMO) Lonza has posted a significant rebound in sales for the first half of 2025, while South Korea's Samsung Biologics continues its streak of revenue growth. Both companies have implemented strategic changes to focus on their core CDMO operations, resulting in improved financial performance.

Lonza's Turnaround Strategy Yields Results

Lonza reported a 19% increase in sales at constant currencies, reaching 3.6 billion Swiss francs ($4.5 billion) for the first six months of 2025. The company's core CDMO business was the primary driver of this growth, contributing 3.1 billion francs ($3.9 billion), a 23% increase compared to the same period in 2024.

The acquisition of Roche's mammalian drug substance plant in Vacaville, California, for $1.2 billion last year has significantly boosted Lonza's contract manufacturing capabilities. The company expects this facility to generate around half a billion Swiss francs in sales for the year.

Despite the overall positive performance, Lonza's cell and gene technologies and microbial operations continue to underperform. The company's specialized modalities sales, which include these areas, came in nearly 9% below analyst expectations.

In light of its strong performance, Lonza has upgraded its full-year sales guidance, targeting growth between 20% and 21%, up from its previous forecast of "approaching 20%."

Samsung Biologics Maintains Growth Trajectory

Samsung Biologics reported total sales of approximately 1.29 trillion Korean won ($936 million) for the second quarter of 2025, representing an 11% increase over the same period last year. The company attributes its continued growth to the expansion of its antibody-drug conjugate (ADC) operations, the introduction of research services through Samsung Organoids, and the opening of its fifth production facility in Korea.

CEO John Rim highlighted these developments as key factors in the company's success. Samsung Biologics has consistently secured major manufacturing contracts with global pharmaceutical companies, supporting its growth trajectory.

Strategic Focus on Core CDMO Operations

Both Lonza and Samsung Biologics are implementing strategies to concentrate on their primary CDMO businesses. Lonza has introduced a restructuring initiative called "One Lonza," which emphasizes its core manufacturing operations and includes plans to divest its capsules and health ingredients (CHI) unit.

Similarly, Samsung Biologics is planning to sell its biosimilars subsidiary, Samsung Bioepis, to strengthen its position as a pure-play CDMO. This move aligns with the company's goal of enhancing its core capabilities in contract development and manufacturing.

Industry Outlook and Challenges

While both companies report strong growth, they acknowledge potential challenges in the pharmaceutical landscape. Lonza is closely monitoring the biotech funding environment and regulatory developments in the United States, particularly those affecting emerging technologies like cell and gene therapy.

The impact of U.S. trade policies and potential tariffs remains a concern, although Lonza expects no material financial impact and believes it can support customers in mitigating any potential effects.

As the pharmaceutical industry continues to evolve, these leading CDMOs are positioning themselves to capitalize on the growing demand for outsourced manufacturing and development services, while navigating the complex regulatory and economic landscape.