Lonza assures analysts of its tariff resilience, shares rise

Lonza AG

08/04/2025 08:43

** Shares in Lonza LONN.S rise 4.8% after analysts said the Swiss drugmaker's management had told them in a call on Monday that it was well-insulated from U.S. tariffs

** "A heavily US-domiciled manufacturing business may have become more valuable in a sustained US tariff environment — all (Lonza's) major customers are based in China and India," RBC Capital Markets says

** Vontobel analysts say that potential U.S. tariffs on drugs would not hurt Lonza directly, but indirectly at most through price pressure on future contracts

** Vontobel also notes that drug manufacturing cannot be quickly shifted to the U.S. due to high costs and complexity

** Lonza's CFO argued during the call that the company has a defensive business model with a global infrastructure, according to RBC and Vontobel

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))