In our continued drive for improved efficiency, we accelerated our transformation through the implementation of Operational Excellence initiatives across multiple sites in 2024, expanding beyond manufacturing to include our enabling functions. The Lean Lab programs have enhanced the efficiency of our Quality Control operations, while the standardization and automation of business processes, supported by advanced digital tools, have further streamlined workflows across the organization.
We made progress in our digital transformation journey, particularly within our supply chain, procurement and maintenance functions. This included streamlining processes, increasing automation, and driving greater operational efficiency. For instance, our new paperless maintenance initiative saves three tons of paper annually. At the same time, we maintained a strong focus on responsible sourcing and the decarbonization of electricity use, in line with our sustainability goals.
Alongside these efforts, we remained committed to addressing customer needs while fostering an environment of employee engagement and development, ensuring that our people are empowered to drive continuous improvement and innovation.
Head, Group Operations
Our business model is designed for long-term growth through strategic investments, operational excellence and a customer-centric approach. With targeted growth initiatives and continuous improvement, we support our customers’ evolving needs so we can build strong partnerships and deliver lasting impact.
Our project management framework, guiding initiatives from initial concept to final delivery, helps drive the effective execution of our growth strategies. We apply a rigorous selection process that aligns with both our customers' evolving needs and our own long-term success, focusing on factors such as strategic alignment, market potential, feasibility and return on investment. This comprehensive approach reinforces our confidence in generating sustained value for the business.
Throughout the project lifecycle, we employ a streamlined, stage-gated approach that drives efficiency and accountability. At every phase, we refine both the technical solutions and the commercial case, with clearly defined metrics and approvals to guide investment decisions. Continuous progress tracking facilitates early issue identification and resolution, helping to align timelines and budgets more effectively.
Each initiative is led by a dedicated project lead and supported by a cross-functional team. We ensure close oversight of individual projects through regular steering committee reviews, while the broader project portfolio is monitored by the Executive Committee and the Board of Directors at key intervals. This governance structure helps keep execution on track while enabling us to incorporate valuable lessons, so we can continually refine our project capabilities.
Building a New Dedicated Facility for the Vertex T1D Cell Therapy Portfolio
As part of our ongoing commitment to innovation, we are building a dedicated 130,000 ft2 facility in Portsmouth (US) to support the manufacture of the Vertex portfolio of investigational stem cell-derived, fully differentiated insulin-producing islet cell therapies for people living with Type 1 Diabetes (T1D).
The dedicated facility will complement our global cell and gene technologies manufacturing network, which supports customers in developing, de-risking, commercializing, and scaling their emerging therapies. Under the terms of the collaboration, Vertex will leverage our scientific, regulatory and manufacturing expertise, along with our global manufacturing network and first-hand experience in the commercial manufacture of cell therapy products.
The new facility is located next to the existing Lonza Portsmouth site, enabling us to leverage the existing infrastructure, capabilities and talent. The construction is progressing in line with plan, with the exterior structure successfully completed in June 2024, just 13 months after commencement. GMP operations are expected to begin by the end of 2026.
The new facility will leverage Lonza’s Sustainable Design Standard1, which prioritizes energy and water efficiency alongside the integration of sustainable technologies into all large investment projects. In partnership with Vertex, this new asset will be the first Lonza near-zero GHG emission manufacturing facility. The main technical sustainability elements include full electrification, use of renewable electricity and a 1.5 megawatt solar photovoltaic installation.
Strategic Expansion of Drug Product Facilities in Switzerland
In 2024, we made solid progress on our key drug product expansion projects in Stein (CH). We are ramping up drug product manufacturing capabilities to support our customers from clinical to large-scale commercial supply. This strategic expansion will strengthen our end-to-end offering by delivering services from development to manufacturing, and from drug substance to drug product. Installations and construction activities continue to progress and the facility is expected to become operational in 2027.
The site in Stein builds upon our existing drug product capabilities in Switzerland which include:
The landmark investment in Stein includes:
Sustainable Design Standards provide a framework to help us reduce energy and water consumption, GHG emissions, and waste production across growth assets.
