Carve-out of Lonza Specialty Ingredients proceeding

Swiss pharmaceutical and biotech ingredient supplier Lonza (VTX: LONN) today announced its intention to proceed with a carve-out of its Specialty Ingredients segment (LSI), sending its shares up 1.84% to 314.00 Swiss francs by early afternoon, having hit 315.60 francs earlier in the morning.

The decision will see the LSI business under independent management, with increased control over its operations and costs. The segment will remain fully owned by Lonza. The company has already commenced with the separation and expects to complete the process by mid-year 2020.

Lonza Group chief executive Marc Funk commented: “This is an important moment for our business and the LSI segment. Our decision will allow the segment to focus on its strengths and drive future growth in a dynamic and competitive environment. More widely, it reflects our commitment to enabling the segment to become the leading global player in microbial control.”