Monday, July 28, 2014

Seeking Alpha: Lonza Targeting Significant Internal Improvements

Back in December I thought biopharma manufacturing and specialty chemical company Lonza (OTCPK:LZAGY) looked like a "middling" investment opportunity on the basis of a rich valuation and so-so organic growth prospects. Since then, the shares are up about 25% as investor interest in immuno-oncology has swelled, free cash flow generation has improved faster than expected, and management has laid out ambitious targets for profit growth and returns. I'm reluctant to call Lonza an uninspiring pick again, particularly as pharmaceutical manufacturers often get generous valuations, but the valuation does seem to factor in good progress on management's goals.

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Lonza Targeting Significant Internal Improvements

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