Lonza to set up India global capability centre

Swiss contract development and manufacturing organisation (CDMO) Lonza Group AG is setting up a new capability centre in India to expand its global operations support network, as multinational pharmaceutical companies increasingly build digital and scientific support hubs in the country.

The centre, to be located in Hyderabad, will handle operational, digital and scientific functions tied to Lonza’s work with pharmaceutical and biotechnology companies.

Headquartered in Switzerland and founded in 1897, Lonza operates more than 30 development and manufacturing sites across North America, Europe and Asia and employs close to 20,000 people. The company reported sales of CHF 6.5 billion and core EBITDA of CHF 2.1 billion in 2025. Lonza is among the global contract manufacturers that pharmaceutical and biotechnology firms rely on to develop and produce complex therapies.

Lonza works with pharmaceutical and biotechnology companies across the drug development lifecycle, providing services ranging from early-stage research support to large-scale commercial manufacturing.

The company’s operations span multiple technology platforms, including mammalian biologics, small molecules, bioconjugates, and cell and gene therapies—areas where the industry increasingly relies on specialised contract manufacturing partners.

Global CDMO expansion

The planned centre will form part of the company’s global framework connecting research, development and manufacturing activities across its facilities serving pharmaceutical and biotechnology clients.

The move comes as Lonza strengthens its focus on its core contract development and manufacturing business, which provides services to drugmakers across the therapy lifecycle—from early-stage development to commercial production.

Pharmaceutical companies are increasingly outsourcing parts of drug development and manufacturing to specialised contractors as therapies become more complex and capital-intensive to produce.

According to market research firm Mordor Intelligence, the global pharmaceutical contract development and manufacturing organisation (CDMO) market is estimated at around $258.9 billion in 2025 and is projected to reach about $374.7 billion by 2031, as drugmakers increasingly rely on specialised manufacturing partners.

In India, the contract research, development and manufacturing (CRDMO) market is estimated at around $12–13 billion and could grow to about $22–25 billion by 2028, according to a report by Boston Consulting Group.

The sector includes companies such as Samsung Biologics, WuXi Biologics and Catalent, which provide outsourced development and manufacturing services to global drugmakers.

In recent years, Lonza has expanded manufacturing capacity and specialised technology capabilities across several global sites, including investments in biologics production and bioconjugates manufacturing at its Visp facility in Switzerland, as well as cell and gene therapy manufacturing operations in the United States.

As biopharmaceutical manufacturing becomes more complex and globally distributed, companies increasingly rely on specialised teams and digital platforms to coordinate manufacturing processes, regulatory documentation and supply-chain operations across multiple sites.

Industry executives say capability centres are becoming an important component of global pharmaceutical operations, supporting functions such as data analytics for drug development, regulatory documentation, digital systems for manufacturing operations and supply-chain management.

India emerging as a GCC hub

Industry experts say India has emerged as a key location for such centres due to its large pool of scientific, engineering and technology professionals. Several multinational drugmakers, including Novartis, Sanofi and Eli Lilly, operate capability centres in the country supporting global research, digital and regulatory functions.

“India has become a natural destination for life sciences capability centres because it combines deep scientific talent with strong digital and analytics capabilities that global pharmaceutical R&D increasingly relies on,” said Dr Purav Gandhi, founder and CEO of Healthark Insights, a healthcare market intelligence and consulting firm focused on analysing global pharmaceutical, biotechnology and healthcare industry trends.

“Talent clusters in cities such as Bengaluru, Hyderabad, Mumbai and Pune allow companies to rapidly scale specialised teams across clinical data science, pharmacovigilance and regulatory functions. The country’s role today goes well beyond cost arbitrage to supporting core global R&D and data-driven drug development,” he added.

Lonza executives recently met Sridhar Babu, Minister for Industries and Commerce, Government of Telangana, and Shakthi M. Nagappan, CEO of Telangana Lifesciences, to discuss the proposed centre and the company’s plans for the facility.

According to state officials, the decision followed an evaluation of multiple locations, with Hyderabad emerging as the preferred site due to the availability of specialised talent and supporting infrastructure.

The new GCC is expected to generate high-value employment and further integrate Hyderabad into the global biopharmaceutical value chain. For Lonza, the India centre is expected to create specialised roles in areas linked to pharmaceutical operations, data and digital systems.

“The city (Hyderabad) continues to stand out as a bright spot for global life sciences investments, driven by its strong scientific ecosystem, digital depth and world-class manufacturing capabilities. Lonza’s investment further strengthens Telangana’s position as a preferred destination for innovation-led growth in the global biopharmaceutical industry. The centre has the potential to create a substantial number of new jobs over the years,” Sridhar Babu said