EIC Corporate Corner with Lonza: how a CDMO scouts and partners to shape future medicines

Brussels, December 19th 2022
Summary
  • Lonza uses a mix of pull and push open innovation approaches to source technologies that complement its biologics R&D.
  • The External Innovation team scouts disruptive technologies and works to convert collaborations into tangible business outcomes.
  • EIC Corporate Days give vetted, funded startups exposure and coaching and act as an efficient gateway for corporates seeking external innovation.
  • Lonza is open to multiple partnership models including joint R&D, service agreements, in-licensing and strategic collaborations.
  • Key challenges are prioritising opportunities that create mutual value and identifying truly transformational innovations.
  • Practical advice to startups: be realistic, concise, do pre-work on potential applications for Lonza, and favour transparency and flexibility.

EIC Corporate Corner with Lonza: working together for a healthier world

On 21 November 2022 the European Innovation Council and Lonza ran an online Corporate Day that gave EIC-funded innovators a chance to pitch technologies aimed at improving healthcare and pharmaceutical processes. After the event the EIC interviewed Delphine Demeestere, Director of External Innovation within Biologics R&D at Lonza, to explain how the company approaches external collaborations and what it looks for in partners.

What Lonza does and where External Innovation fits

Lonza positions itself as a contract development and manufacturing organisation or CDMO. In practice that means the company combines scientific expertise, process development and large scale manufacturing to help customers move drug candidates from discovery through to commercial production. That role makes efficient access to new tools and methods strategically important because customers expect the CDMO to offer up to date technical capabilities that reduce development times and costs.

Delphine Demeestere's role:As Director of External Innovation, Delphine scouts economically valuable technologies and advances collaboration opportunities with Lonza's R&D teams. The External Innovation team exists to support Lonza's overall innovation strategy by bringing in external solutions that complement internal capabilities and can be converted into deliverable business outcomes.

How Lonza approaches open innovation

Lonza adopts both reactive and proactive strategies to integrate external technologies. The company must balance responding to internal scientists' requests with proactively injecting disruptive ideas into its pipeline. Both approaches have different operational implications and lead to different types of engagements.

Pull strategy:Scientists inside Lonza maintain external networks and often spot technologies they want to integrate into the company's toolkit. In those cases the internal teams request support and External Innovation works to 'pull' the technology into Lonza if there is a clear fit.
Push strategy:External Innovation continuously monitors the external landscape and when it identifies potentially disruptive technologies it 'pushes' these ideas into Lonza's pipeline. This is a proactive effort to ensure the company absorbs innovations that might not be visible through internal networks alone.

The main operational challenges for External Innovation are prioritising the right opportunities and distinguishing incremental improvements from genuinely transformative innovations. Prioritisation requires assessing potential economic value for both Lonza and its partners and making tradeoffs across limited internal resources.

Why Lonza participates in EIC Corporate Days

From Lonza's perspective the EIC Corporate Day format offers efficient access to carefully vetted, EU-funded startups across geographies and sectors. The EIC adds value beyond event logistics by preparing start-ups with coaching sessions, which increases the quality of pitches and reduces time spent on initial screening.

What the EIC brings to corporates and startups:The EIC functions as a curated channel connecting corporates with startups that already passed a degree of selection through public funding. That combination provides broader geographical reach, pre-coaching to improve engagement quality and a higher probability of meeting solid candidates. However that probability is not a guarantee and corporates still conduct their own due diligence and prioritisation after the events.

Types of partnerships Lonza considers

Lonza uses multiple collaboration models. The choice depends on technology maturity, strategic fit, intellectual property considerations and the commercial roadmap of the partner. Many relationships begin with joint R&D because that model gives both sides a bounded project to test fit and technical compatibility.

ModelTypical arrangementWhen it is usedProsCons
Joint R&DCollaborative development project with defined milestonesEarly to mid technology readiness where co-development reduces technical riskShared risk, builds mutual understanding and IP arrangements, good for proof of conceptRequires governance, time to align objectives and resources
Service agreementLonza provides development or manufacturing services to the partnerWhen Lonza's facilities or knowhow are needed to deliver a customer solutionQuick route to market, revenue for partner, clear scopeLess strategic alignment and limited IP sharing
In-licensingLonza obtains rights to use or develop a technologyWhen Lonza wants exclusive or non-exclusive rights to key technologyAccess to ready technology, can accelerate product offeringsUpfront costs and contractual complexity, depends on partner's valuation
Strategic collaborationLonger term partnership often spanning multiple projectsWhen there is clear mutual strategic benefit and alignmentDeeper integration and potential for higher joint valueRequires stronger commitment, complex negotiations and governance

How startups should approach Lonza

Delphine emphasises that successful approaches start with technical clarity and realism. Startups should present a concise description of their technology, its differentiators and realistic use cases. Lonza values creativity when jointly solving specific problems and also appreciates when startups do preparatory work to understand what of their offering could be economically relevant to Lonza.

Practical tips from Lonza:Be concise and technically rigorous. Avoid overclaiming the technology's immediate market potential. Demonstrate an understanding of Lonza's business and propose which parts of your offering could create value. Show flexibility and transparency. Treat the relationship as a two way street where both parties should benefit.

Outcomes and outlook

The EIC Corporate Day with Lonza produced positive internal feedback and yielded a number of opportunities worth exploring. Lonza will now perform due diligence and prioritise candidates that best match its strategic needs. That process is typical when large corporates engage with multiple early stage innovators.

From a wider EU innovation ecosystem perspective, these events matter because they lower search costs for corporates and provide startups with structured exposure to customers and industrial partners. The EIC plays an important convening role in Europe by combining funding, matchmaking and coaching. Still, getting from initial pitch to a productive partnership remains a practical challenge that requires alignment on technical scope, legal terms and commercial incentives.

Where to go next

Startups interested in connecting with large European corporates should consider engaging with EIC Business Acceleration Services events and the EIC Corporate Days calendar. Participation gives exposure, coaching and a curated audience. Corporates should continue to balance internal pull requests with active external scouting to avoid missing disruptive ideas.

Lonza and the EIC both stress that partnerships are practical exercises. Successful collaborations require realistic assessment of technology readiness, transparent communication and project structures that share risk and reward.