Lonza reported an increase in sales in 2025 thanks to new commercial contracts in various technology programs. The healthcare manufacturer and contract developer posted sales of 6.53 billion Swiss francs for 2025 on Wednesday, equivalent to 8.58 billion US dollars. This represents an increase of 19.2 percent compared to 2024. Analysts had expected sales of CHF 7.54 billion for the year, according to consensus estimates compiled by Vara Research. Lonza highlighted contract activities at its biologics manufacturing site in Vacaville, California, as one reason for the solid performance. The company reported core earnings before interest, taxes, depreciation, and amortization (core EBITDA) of CHF 2.06 billion for 2025, an increase of 24.9 percent compared to 2024. Analysts had forecast core EBITDA of CHF 2.27 billion, according to Vara Research. Lonza expects currency-adjusted sales growth of 11 to 12 percent for the current year and a further expansion of the core EBITDA margin to a level above 32 percent.

The Swiss stock market ended trading on Tuesday with a gain. The SMI added 0.6 percent to 13,216 points. Swisscom was the strongest performer in the SMI, rising 4 percent. The telecommunications provider will increase prices for various subscription models starting in April. ABB also posted strong gains, jumping 1.8 percent. Analysts at Kepler Chevreux had upgraded the stock to “buy.” ABB will present its fourth-quarter figures on Thursday, kicking off the reporting season for the industrial goods sector. Roche (-0.1%) did not benefit from encouraging Phase 2 study data on a weight-loss injection. Vontobel expects the drug to hit the market in 2028 at the earliest and estimates peak sales of CHF 2.5 billion for the product. Positive analyst comments also failed to provide any support. Analysts at Citi initiated coverage of both Roche and Novartis shares with a buy recommendation. Novartis shares advanced 0.6 percent. Among small caps, Siegfried surged 13.5 percent. Investors welcomed the acquisition of the active ingredient business of Noramco Group and Extractas Bioscience. Siegfried is expanding its presence in the US, analysts at Stifel praised. The transaction closes a critical gap in the value chain. The purchase price is attractive.

Europe
European stock markets advanced overall on Tuesday. The Stoxx Europe 600 index rose 0.6% to 613.1 points. In Paris, the CAC 40 and SBF 120 each gained 0.3%. In Frankfurt, the DAX 40 gave up 0.2%, while the FTSE 100 climbed 0.6% in London. LVMH (owner of L'Agefi) has just kicked off the annual results season for the CAC 40 giants after the Paris stock exchange closed. The luxury group posted revenue of €80.8 billion in 2025, with net profit of €10.9 billion. ERAMET (-7.9%, to €78.55): Portzamparc downgraded its recommendation on the mining group's stock from “hold” to “reduce,” while raising its target price from €48 to €58. LEGRAND (+2.3% to €131.60): On Tuesday, JPMorgan placed the electrical infrastructure specialist's stock on its “positive catalyst watch” list, which includes stocks offering the best short-term risk/return ratio. The US bank confirmed its “overweight” recommendation and its target price of €165 for the stock. SES (-1.8%): On Monday evening, Fitch Ratings downgraded the satellite operator's credit rating from ‘BBB’ to “BBB-”, with the outlook remaining “stable”. Fitch expects SES's operating performance to suffer from increased competition and the integration of Intelsat. PUMA (+9% in Frankfurt): Chinese sportswear manufacturer Anta has reached an agreement to acquire a stake in Puma for $1.79 billion, making it the largest shareholder in the German company famous for its iconic sneakers.

United States
On Tuesday, the Dow Jones Industrial Average dropped 0.8%, dragged down by UnitedHealth. A chip-maker rally helped the Nasdaq composite, which rose 0.9%, and the S&P 500, which added 0.4%, fare better. UNITEDHEALTH GROUP (-19.6%), HUMANA (-21.1%), CVS HEALTH (-14.2%): Health insurers plunge as federal funding for the Medicare Advantage program is expected to remain virtually unchanged next year. In all, the health-insurance selloff erased $99 billion in market value across six hard-hit stocks Tuesday, according to Dow Jones Market Data. GENERAL MOTORS (+8.7%): On Tuesday, the car manufacturer announced a 20% increase in its dividend and a $6 billion share buyback program. GM posted a net loss of $3.3 billion in the fourth quarter due to previously announced impairment charges, mainly related to its electric car business. AMERICAN AIRLINES (-7%): The airline reported optimistic forecasts for 2026, after being penalized by a decline in passenger traffic in the United States in the last quarter due to the government shutdown. MICRON TECHNOLOGY (+5.4%): The memory chip manufacturer plans to invest $24 billion in Singapore over the next ten years to expand its production capacity. COREWEAVE (+10.7%): The cloud computing services provider continued to rally after climbing 5.7% on Monday, buoyed by the news that NVIDIA (+0.5%) would invest $2 billion in its capital.

Asia
In Asia, major indexes broadly closed with gains on Wednesday. Taiwan is up 0.3 percent, while in Korea, the Kospi has jumped to a new record high and is currently up 1.7 percent. SK Hynix, a manufacturer of scarce RAM memory, stands out with a further gain of 4.9 percent. Defense manufacturers are also in demand, with Hanwha Aerospace jumping 4.6 percent. Strong US figures from RTX (Raytheon) are driving momentum here. In Hong Kong, the Hang Seng Index has broken out of its months-long sideways trend and is up 2.4 percent.

Bonds
Long-dated U.S. government debt yields edged higher on Tuesday. The 10-year Treasury note yield increased by 2 basis points to 4.23%. The Fed is expected to keep rates unchanged tomorrow. Investors watch the 10-year Treasury yield closely, partly because it influences mortgage rates and other borrowing costs for Americans and U.S. companies. Also, stocks can be spooked by sharp rises in the 10-year Treasury rate, which investors use to calculate valuations in the equities market.

Analysis
Novartis rating: Citigroup launches coverage with a Buy rating and a target price of CHF 133
Givaudan target price: Berenberg downgrades to CHF 3800 (3990) – Buy
Roche rating: Citigroup resumes coverage with a Buy rating and a target price of CHF 400

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