Lonza Group AG

Lonza, based in Basel, is one of the world's largest contract manufacturers for the pharmaceutical and biotech industries, making the active ingredients, biologics and increasingly the complex therapies that drug companies outsource to it. Long-term production contracts and the growth of biologic medicines give it a resilient, structurally growing business. Lonza pays a modest dividend, choosing to reinvest heavily in new capacity to capture demand, so the yield is small despite a steady record of increases. The stock is valued mainly for long-term growth in pharma manufacturing rather than for income.