Lonza to Sell Capsules & Health Ingredients Business for $3 Billion in Strategic Shift
Swiss life sciences major Lonza has agreed to divest its Capsules & Health Ingredients unit to Lone Star Funds as part of a strategic move to focus on contract drug manufacturing
- By PharmaNews Live Desk
- New Delhi
- Mar 09, 2026
Swiss pharmaceutical and biotechnology manufacturing company Lonza Group has agreed to sell its Capsules & Health Ingredients (CHI) business to private equity firm Lone Star Funds in a deal valued at CHF 2.3 billion (about $3 billion).
The transaction marks a significant strategic shift for Lonza as the company continues its transformation into a pure-play contract development and manufacturing organisation (CDMO) focused on pharmaceutical and biotechnology services.
The agreement is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions.
Deal structure and financial terms
Under the terms of the agreement, Lonza will receive CHF 1.7 billion (around $2.2 billion) in upfront proceeds while retaining a 40% equity stake in the divested business.
The company will also have preferential participation in any future exit of the business, with total undiscounted proceeds from the deal expected to reach at least CHF 3 billion.
Lonza said the upfront funds will be used to support organic growth initiatives, targeted acquisitions, and expansion of its manufacturing capabilities within the CDMO segment.
Focus shifts to core drug manufacturing services
The divestment is part of Lonza’s broader portfolio restructuring under its “One Lonza” strategy, first announced in 2024, aimed at sharpening the company’s focus on high-value pharmaceutical manufacturing services.
By exiting the capsules and health ingredients segment, Lonza intends to streamline operations and concentrate on its core CDMO platforms, including biologics manufacturing, advanced synthesis and specialised modalities.
The capsules and health ingredients division manufactures gelatin and plant-based capsules, dosage form solutions and nutrition ingredients used by pharmaceutical and nutraceutical companies worldwide.
Business operates across global markets
The CHI unit operates globally across the Americas, Europe and Asia-Pacific, serving pharmaceutical, nutraceutical and consumer health industries.
Its portfolio includes hard empty capsules, dosage form development platforms and science-based nutritional ingredients used in supplements and healthcare products.
Lonza’s decision to retain a minority stake suggests the company will continue to participate in the future growth of the business while allowing the new owner to pursue operational expansion and investment.
Strategic transformation of the Swiss pharma supplier
Headquartered in Basel, Switzerland, Lonza is one of the world’s largest contract manufacturers for the pharmaceutical and biotechnology industries.
The divestment of the CHI business represents one of the final steps in the company’s strategic transformation as it concentrates resources on advanced pharmaceutical manufacturing technologies and partnerships with global drug developers.
Industry observers say the move reflects the growing importance of outsourced drug manufacturing and development services in the global pharmaceutical sector.