Lonza, a contract development and manufacturing organization (CDMO), said it has signed a definitive agreement to acquire five CDMO manufacturing sites in the U.S. from Merck.
The acquisition expands Lonza’s U.S. CDMO manufacturing footprint from four to nine sites and complements its global network by adding end-to-end development and manufacturing capabilities in the U.S., one of the world's largest markets for innovative pharmaceuticals. The acquired network supports customers from clinical through to commercial in attractive growth areas such as antibody-drug conjugates (ADCs) and other bioconjugates, viral vectors for cell & gene therapies and advanced drug-delivery technologies.
Together with the ongoing investment in CDMO readiness in Vacaville, California, and the recently announced investment in a commercial spray-drying facility in Bend, Oregon, this acquisition represents another step in building an even more comprehensive, competitive CDMO network in the US.
“This acquisition...will significantly expand our US presence, bringing us even closer to our customers, while increasing the resilience of our global manufacturing network. With high demand for bioconjugates and viral vectors, the acquired sites will strengthen our ability to support customers from innovation to launch and commercial supply," said Lonza CEO Wolfgang Wienand in a statement. "I am particularly excited to welcome the highly experienced teams at these sites to One Lonza. It takes great people with deep scientific expertise and excellence in development and manufacturing to reliably translate breakthrough innovation into viable therapies for patients. Together, we will build an even stronger offering for our customers.”
Kai Beckmann, chairman of the executive board and group CEO for Merck KGaA, Darmstadt, Germany, described the deal as another important step in advancing the company's mid- to long-term strategic agenda.
"A more concentrated Life Science portfolio will allow us to focus our investments on building our scientific leadership and make us an even stronger partner for our customers. Our CDMO teams have built a strong foundation through their expertise and commitment. We believe Lonza is well positioned to build on that foundation and support the business’s next phase of growth," he said in statement.
Under the terms of the agreement, approximately 1,100 employees will join Lonza's global workforce and increase its U.S. employee base to more than 6,000 employees. The facilities that Lonza has agreed to acquire will expand its capabilities across the following technologies and from clinical development through to commercial manufacturing services:
- St. Louis, Missouri: Bioconjugates.
- Madison and Verona, Wisconsin: High-potency payload-linkers.
- Carlsbad, California: End-to-end viral vector solutions, including aseptic fill-finish capabilities.
- Indianapolis, Indiana: Lipid nanoparticle, liposome, and PEGylated protein solutions, including aseptic fill-finish capabilities.
Closing of this transaction is expected mid-2027, subject to customary closing conditions. This transaction will not affect Lonza’s previously announced share buyback following the closing of the divestment of its Capsules & Health Ingredients business.
For Merck, the CDMO deal comes after the company earlier this year announced a $6.7 billion deal to acquire Terns Pharmaceuticals, which is currently developing a drug to treat certain patients with chronic myeloid leukemia.
