Swiss pharmaceutical contract manufacturer Lonza announced on November 3 that it had signed a definitive agreement to acquire five US CDMO manufacturing sites from Germany's Merck KGaA. The deal will expand Lonza's manufacturing capabilities in antibody-drug conjugates, viral vectors and other complex therapies while more than doubling its US CDMO site network. The transaction carries an enterprise valuation in the low-to-mid hundreds of millions of Swiss francs and is expected to close in mid-2027.
The acquisition covers facilities in Missouri, Wisconsin, California and Indiana. Lonza's US CDMO network will expand from four to nine sites, with approximately 1,100 employees joining the company. Its American workforce is expected to exceed 6,000 following completion.
The St. Louis facility specializes in bioconjugates, while sites in Madison and Verona manufacture high-potency payload-linkers used in targeted therapies. The Carlsbad operation provides viral vector manufacturing and aseptic fill-finish services. Indianapolis adds lipid nanoparticles, liposomes and PEGylated protein technologies. Together, the facilities will expand Lonza's capabilities in antibody-drug conjugates (ADCs) and cell and gene therapies.
Lonza expects the acquired operations to generate approximately CHF 250 million in annual sales in 2028. Their initial CORE EBITDA margin is projected to remain below the group's average, with further growth expected from existing manufacturing capacity and additional investment.
For Merck KGaA, the divestment will further reduce the CDMO manufacturing assets held within its Life Science business. The German group will retain its portfolio of pharmaceutical manufacturing technologies, consumables and services, including BioReliance contract testing. The five CDMO facilities will continue operating under Merck KGaA until the transaction closes.
