Lonza to acquire major biologics manufacturing facility

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Lonza has agreed to acquire one of the world’s largest biologics manufacturing sites (by volume), for a total of $1.2 billion from Roche. The acquisition of the manufacturing facility will significantly increase Lonza’s capacity of the manufacture of large-scale biologics, to meet demand for commercial mammalian contract manufacturing.

At present, the Genentech Vacaville facility in the US has a total bioreactor capacity of around 330,000 litres.

The products currently manufactured at the Vacaville facility by Roche will be supplied by Lonza, under the agreement. Lonza stated that with committed volumes over the medium term, this will be phased out as the facility shifts to accommodate alternative customers.

More about the deal

Upon closing of the deal, the US Vacaville site will be integrated into Lonza’s Biologics division. These include existing mammalian manufacturing facilities sited in Visp (CH), Slough (UK), Singapore (SG), Portsmouth (US) and Porriño (ES).

The transaction will create “a significant West Coast commercial manufacturing presence, complementing Lonza’s existing Biologics site on the East Coast, in Portsmouth (US), as well as its international network across Europe and Asia”, Lonza shared.

Additionally, under the terms of the deal, approximately 750 Genentech employees at the Vacaville (US) facility will be offered employment by Lonza.

The Vacaville site acquisition “will make capacity immediately available for our customers and unlock future growth for our Biologics division. It will support us in providing a commercialization path to existing customers and incremental large-scale commercial capacity to our partners,” Jean-Christophe Hyvert, President of Biologics at Lonza commented.

Supporting the production of biologics

Demand for capacity for commercial biologics is expected to remain high across the CDMO industry as innovative new medicines are approved, Lonza explained.

Lonza noted in a related Investor Presentation, that post-closing of the agreement, it will invest approximately CHF 500 million to upgrade the facility.

Subject to customary closing conditions, the acquisition agreement is expected to close in H2 2024.