Tuesday, 30 January 2024 Reading time : 2 minutes

Swiss pharmaceutical supplier Lonza has started the new year with a bang: since the beginning of January, its shares have gained almost 23%. This puts Lonza at the top of the SMI, which has climbed 2.6% over the same period. The trigger for the recent share price rise was last Friday's publication of the group's annual result which turned out to be better than expected. Stock markets reacted with a daily gain of more than 14%.

The rebound follows a difficult year marked by bad news. The departure of CEO Pierre-Alain Ruffieux, Moderna's decision to halt the production of its coronavirus vaccine and disappointing medium-term targets caused Lonza's share price to almost halve in 2023. The slide came to a halt at the end of October – at CHF 311.50, the shares were as cheap as they had last been in spring 2019.

Accordingly, expectations ahead of the annual results were low. This time, however, Lonza was able to surprise on the upside, particularly with the reaffirmation of its medium- and long-term targets.

The coming months will show whether the current development is indeed a trend reversal. The Barrier Reverse Convertible on Lonza offers partial protection against price setbacks while paying a guaranteed coupon of 7.5% per annum. If investors expect the share price to move sideways, the Reverse Convertible on Lonza offers a guaranteed coupon of 7.75% per annum. If the price of the Lonza shares is below the strike of 90% at expiry, the share is delivered, whereby the purchase price of the share equals 90% of the initial fixing.

7.50% p.a. Barrier Reverse Convertible on Lonza

• 70% barrier
• 12 months tenor
• Quarterly callable 
• Subscription period until 8. February 2024
• Termsheet

7.75% p.a. Reverse Convertible on Lonza

• 90% strike
• 6 months tenor
• Quarterly callable
• Subscription period until 8. February 2024
• Termsheet

Indicative terms

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.