Lonza has announced the signing of an agreement to acquire the Genentech large-scale biologics manufacturing site in Vacaville, California, from Roche for USD 1.2 billion.

The acquisition is poised to enhance Lonza's large-scale biologics manufacturing capacity, catering to the growing demand for commercial mammalian contract manufacturing. With a total bioreactor capacity of approximately 330,000 liters, the Vacaville facility ranks among the largest biologics manufacturing sites globally.

Approximately 750 Genentech employees at the Vacaville facility will transition to Lonza under the agreement, ensuring continuity and expertise in operations. Lonza's strategic move comes in response to the anticipated high demand for capacity in the commercial biologics sector as innovative therapies gain regulatory approval.

The acquisition of the Vacaville site not only grants Lonza immediate access to significant new capacity in the United States but also establishes a substantial West Coast commercial manufacturing presence. This expansion complements Lonza's existing Biologics site on the East Coast in Portsmouth, US, as well as its international network across Europe and Asia.

Lonza plans to invest approximately CHF 500 million in additional capital expenditure to upgrade the Vacaville facility and enhance its capabilities to meet the demands of the next generation of mammalian biologics therapies. The transition of products currently manufactured at the site by Roche to Lonza's supply chain will be phased out over time as the site begins serving alternative customers.

Jean-Christophe Hyvert, President of Biologics at Lonza, expressed excitement about the acquisition, emphasizing its strategic importance in expanding the company's capacity and supporting future growth. "We have deep and long-standing industrial expertise in delivering commercial scale manufacturing services for our customers’ therapies. In combining this with the strong legacy of the Vacaville facility, its highly skilled colleague community and its proven track record on quality, we are excited to take our leading large-scale mammalian offering to its next chapter of growth,” said Hyvert.

Furthermore, Lonza has updated its Mid-Term Guidance 2024 – 2028, anticipating an increase in sales growth range from 11 – 13 percent CAGR to 12 – 15 percent CAGR in constant exchange rates. Other aspects of the Mid-Term Guidance, including CORE EBITDA margin and ROIC, remain unchanged. BofA Securities is serving as a financial advisor to Lonza in this acquisition.