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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