July 21 Reuters Swiss drug contract manufacturer Lonza said firsthalf core earnings gained 16.5 on strong demand from biopharmaceutical companies.

Firsthalf core earnings adjusted for interest, tax, depreciation and amortisation EBITDA rose to 987 million Swiss francs 1.02 billion, it said in a statement on Friday, beating an analyst consensus of about 940 million francs.

For this year, Lonza said it was still targeting low to midteens sales growth, when excluding currency swings, as well as an improvement in the core EBITDA margin that is consistent with a 2024 goal of 3335, up from 30.8 in 2021.

The company is in a multiyear 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 longterm growth in the biopharmaceuticals sector well beyond the pandemic.

Reporting by Ludwig Burger, Editing by Miranda Murray

Source Reuters