Lonza with improved order placement and contract signing
onza delivers a solid business performance in all sectors despite volatility in the area of exchange rates, uncertainties in customers’ innovations and fluctuation in non-pharmaceutical markets in the first half of 2010. Demand for life science Ingredients products improved compared with 2009. Increasing margin pressure in some areas was more than offset by volume growth. Visibility improved thanks to firmly placed orders and new contracts signed in Custom Manufacturing. Overall, new contracts and orders were at a considerably higher level than a year ago, driving stronger business growth in the second half of the year and through 2011. Increased capacity utilization in large-scale biological manufacturing is a consequence of firm order placements since March 2010. However, de-stocking in Custom Manufacturing continued in the first half, and volatility is expected to continue, especially for the small-scale business. Bioscience overall is on track; the decline in sales is due to the expected underutilization in Therapeutic Cell Solutions. Demand from academia and industry has improved but is not yet fully recovered, with companies still reducing R&D budgets.
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