Lonza Group, the Switzerland-based maker of drug ingredients, plummeted 25 per cent on Thursday after comments from its chief executive indicated a worse than expected outlook for the sector.

Pharmaceutical groups that previously concentrated on research and development are now focusing on their balance sheets and reducing inventories, analysts said. Drug ingredients makers, the suppliers, were among the most affected in the short-term, they said, predicting the downturn could continue into 2011.