Lonza Reported to Buy US biologics site from Roche for $1.2 billion

The SWISS contract drug manufacturer Lonza claimed this wednesday on March 20th that they have accepted an agreement and gave a green signal to acquire the Genentech manufacturing facility in Vacaville in California, from Roche for $1.2 billion in cash. 

Lonza is predicted to invest around 500 million Swiss francs, which is $754.8 million in order to enhance the facility and improve the capabilities at the site to accommodate the next generation of the mammalian biologics therapies, is what the company has claimed in a statement.

At the moment, the Vacaville facility has around 330,000 litres of bioreactor capacity which makes this one of the biggest biologics manufacturing sites globally if measured by volume. 

“The Vacaville site is a highly valuable strategic acquisition that will make capacity immediately available for our customers and unlock future growth for our biologics division,” is what was claimed by Jean-Christophe Hyvert, who is the president of Biologics at Lonza.

It has been reported that they are expected to conclude in the second half of 2024 which is subject to customary closing conditions. 

Lonza who is from Basel has raised its 2024 to 2028 sales target to a range of 12 to 15 percent compound annual growth rate from its 11 to 13 percent growth estimate before this. 

This deal claimed that about 750 Genentech employees at the facility will be provided employment by Lonza, and the products which are produced right now at the site by Roche, will continue to be supplied by Lonza for a transition period, said Roche. 

Susanne Hundsbaek-Pedersen, who is the global head of pharma technical operations at Roche said the sale of the facility was an aspect of the elongated and continued strategy and optimisation plan in order to deliver a “more diversified portfolio including new drug modalities.”