Lonza's HQ in Basel Tower SwitzerlandLonza's HQ in Basel Tower Switzerland
  • Lonza acquires Genentech’s Vacaville biologics site from Roche for $1.2 billion, expanding large-scale manufacturing capacity in the US, investing $500 million for upgrades.
  • Roche products will be transitioned to Lonza.
  • Sales growth forecast adjusted to 12-15%. Deal expected to close in H2 2024.

Basel, Switzerland – Lonza, one of the world’s largest healthcare manufacturing organizations, Wednesday announced a strategic expansion with the acquisition of Genentech’s large-scale biologics manufacturing site in Vacaville, California, from Roche.

The deal, valued at USD 1.2 billion, marks a significant increase in Lonza’s capacity for large-scale biologics manufacturing.

This acquisition is poised to bolster Lonza’s ability to meet the growing demand for commercial mammalian contract manufacturing. It specifically targets customers with existing commercial products and those with molecules currently advancing towards commercialization within Lonza’s network. The Vacaville facility, renowned for its scale, boasts a bioreactor capacity of approximately 330,000 liters, classifying it among the world’s largest biologics manufacturing sites by volume.

Under the terms of the agreement, about 750 Genentech employees currently working at the Vacaville site will be offered positions at Lonza. This move ensures a seamless transition in operations and maintains the facility’s strong expertise. Furthermore, Lonza has committed to investing around CHF 500 million in additional capital expenditures (CAPEX) to upgrade and enhance the Vacaville facility. This investment aims to advance the site’s capabilities in producing the next generation of mammalian biologics therapies.

In addition to taking over the facility, Lonza will continue to manufacture the products currently produced there by Roche. This arrangement includes committed volumes for the medium term, gradually phasing out as the site transitions to accommodate new customers.

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By Lisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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