Service
Exceptional customer service is fundamental to building lasting relationships and differentiating the Lonza CDMO offering. We work to earn customer trust and loyalty through our consistent focus on operational excellence, our strong track record on quality, and our commitment to delivering value and right-first time.
In 2024, we continued to prioritize continuous improvement and operational excellence across the business. We advanced efficiency by implementing Operational Excellence initiatives across multiple sites and enabling functions. We continued to maintain our strong focus on Lean operating principles and enhanced the efficiency of our Quality Control operations. In addition, 11,000 of our global colleagues have now completed our Lean training program to guide their continuous improvement activities and deliver outstanding customer service. Since the start of 2022, we have successfully executed around 2,000 Lean projects to drive efficiency and value across our operations. These efforts have contributed to our high customer satisfaction ratings.
In 2024, we ran our Lonza Promoter Score (LPS) survey for the fifth consecutive year and gathered more than 1,900 responses. The survey provides a quantifiable and consistent measure of customer engagement across Lonza. Aligned with previous results, the 2024 LPS survey found that our customers continue to value our highly skilled employee community. In addition, the quality of our services and products was also widely acknowledged. This feedback was consistent across our customer base.
Scope
We have one of the most complete offerings in the CDMO industry across modalities, scales and phases, enabling us to help our customers in bringing new drugs to market quickly and securely. We provide end-to-end support from pre-clinical stages to commercialization, and our expertise spans both drug substance and drug product.
Our breadth of offerings is strengthened by our growth strategy, which focuses on building capability and capacity in areas of high market potential. In 2024, we progressed with 22 large growth projects – 50% of which are now in construction and 20% in ramp up.
Our approach to organic growth is illustrated by our growing Bioconjugates portfolio. In 2024, we invested in technologies to manufacture bioconjugates at different scales, further strengthening our integrated supply chain. To allow us to support further ADC drug candidates through to commercialization, we expanded our offering to include filling lines in Stein (CH) and Basel (CH), which are specifically designed to manufacture highly-potent compounds. We are also expanding bioconjugation capacity in Visp (CH) with the addition of three large-scale suites to meet growing demand for commercial large-scale manufacturing. The suites will include both customer-dedicated and multipurpose spaces to meet the needs of new and existing customers.
Our organic growth portfolio is supported by bolt-on acquisitions in areas of sustained customer need and high market potential. In 2024, we expanded our mammalian manufacturing network with the acquisition of the Genentech large-scale manufacturing site in Vacaville (US) from Roche. This strategic acquisition has created a significant West Coast commercial manufacturing presence close to San Francisco’s pharma and biotech hub, complementing our existing East Coast manufacturing site in Portsmouth, as well as our international network. With a total bioreactor capacity of around 330,000 liters, the Vacaville site is one of the largest biologics manufacturing facilities in the world. This acquisition, alongside the addition of six 20,000L bioreactors in Visp (CH), which will commence operations in H1 2025, further strengthens our capability to meet our customers’ long-term commercial supply needs.
Our scope further expanded with new offerings in 2024. Building on more than 20 years of experience in the spray-drying of biologics (including monoclonal antibodies (mAbs), oligonucleotides and peptides), we now offer spray-drying of biologics for clinical supply and beyond. Our new clinical offering further strengthens our spray-drying expertise and provides manufacturing capacity from early-phase to commercial supply. This expertise and capability enable our customers to bring innovative new medicines to patients with unmet medical needs.
Sustainability
Sustainability is a critical component of our strategy and an ethical imperative for our business. We reached multiple sustainability milestones in 2024 and achieved progress in all of our key environmental metrics.
The Science-Based Targets initiative (SBTi) approved our near-term target to reduce absolute Scope 1 and 2 GHG emissions1 by 42% by the end of 2030 (against the 2021 base year), alongside our supplier engagement target for Scope 3 emissions1. Achieving these goals will support our overall target to achieve net zero by 2050 or before.
To support our emissions reduction journey, we have made significant progress in the adoption of renewable electricity. Half of our electricity is now procured from renewable sources; supported by the start of photovoltaic production in Spain under Virtual Power Purchasing Agreements, covering all EU and Swiss sites. Furthermore, in Q2 2024, we signed multiple long-term Renewable Energy Certificate (REC) agreements in the United States which will begin to offset the majority of our US emissions from the end of 2025.
Our activities are guided by our continuing dedication to integrity and ethical conduct. Our successful efforts in this area were recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices. In 2024, for the third time, we were honored to be one of the World’s Most Ethical Companies®. Lonza is one of just two companies headquartered in Switzerland included in the 2024 ranking, and one of just four companies named within the pharmaceuticals category of the Ethisphere ranking.
We made further progress on improving supply chain engagement. As part of these efforts, we launched a learning series on emission reductions and hosted our first online Responsible Supplier Event with more than 1,100 participants. This was designed to empower both employees and suppliers to actively contribute to our sustainability goals..