Lonza Signs CDMO Deal to Break Into Israeli Market

Lonza, a Swiss contract development and manufacturing organization (CDMO), has agreed on a two-year deal with the Israel Biotech Fund (IBF) to penetrate the Israeli market.

The agreement with IBF gives Lonza access to IBF’s portfolio companies and broad network in the biotech industry in Israel. In exchange, the CDMO will pre-invest in IBF and provide their portfolio companies with advice and services for the development and production of biologics and small molecules.  

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Growing Demand For CDMOs in Israel

Israel may be slightly smaller than the US state of New Jersey, but the country has a booming biotech sector. More than 1,750 life sciences companies were recorded to be active in Israel at the end of 2020, most of which are startups and small biotechs. The number is growing; the number of biotech startups established every year has averaged 150 in the last decade. As such, demand for the production of therapeutic substances such as biologics and small molecules is increasing. 

Lonza’s manufacturing expertise ranges from monoclonal antibodies, complex proteins, and small molecules to antibody-drug conjugates. Its services could potentially simplify the supply chain, reduce process complexity, shorten drug development timelines, and allow client companies to focus on R&D and preclinical studies. 

The CDMO deal mirrors another agreement Lonza established with ALSA Ventures, a London-based European biotech investment firm, a few weeks ago. 

Under the collaboration, Lonza will help ALSA’s preclinical and early clinical stage biotechs produce biologics and small molecules. 

Founded in 1897 in the Swiss Alps, Lonza operates across five continents, and currently has a task force of around 16,000 full-time employees. The company generated sales of  $5.61 billion (CHF 5.4 billion) in 2021. Lonza is listed on the SIX Swiss Exchange, the Swiss Market Index (SMI), and has a secondary listing on the SGX Singapore Exchange.

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Joy Lin

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