Lonza Inc. Boots Out CEO as 2011 Profit Plunges
1/25/2012 8:11:40 AM
Swiss drugs industry supplier Lonza (LONN.VX) (LONZ.SI) kicked out chief executive Stefan Borgas after profits for 2011 plunged by a third and said 2012 was set to pose further challenges because of the difficulties faced by pharmaceutical firms. The Basel-based group, which is battling currency headwinds and volatile raw material prices, said the board took the decision to replace Borgas in the last 48 hours. "CEOs have a responsibility to deliver on expectation and I think our company over the last few years has not fully lived up to the expectation," Lonza Chairman Rolf Soiron told a conference call on Wednesday. Lonza makes high-margin pharmaceutical ingredients for drugmakers like GlaxoSmithKline (GSK.L) and Abbott (ABT.N), and has moved back into specialty chemicals as it seeks to shield itself from the volatile pharmaceutical industry.