Lonza Acquires Large-Scale Biologics Manufacturing Site in Vacaville from Roche

Lonza Group AG announced its acquisition of Genentech's large-scale biologics manufacturing facility in Vacaville, California, from Roche for USD 1.2 billion in cash. This strategic purchase marks a significant expansion of Lonza’s capacity in the large-scale biologics manufacturing sector, catering to the increasing demand for mammalian therapies. Highlighting the scale of this acquisition, the Vacaville site stands as one of the world's largest biologics manufacturing facilities by volume.

The deal entails an investment plan by Lonza of approximately CHF 500 million to upgrade the Vacaville site, aiming to enhance its capability to produce next-generation mammalian biologics therapies. This move not only scales Lonza’s manufacturing capacity but also signifies its commitment to supporting the growth of its existing and future customers in the commercial pharmaceutical landscape. Roche’s current production at the site will continue under Lonza’s management, ensuring a smooth transition with committed volumes over the medium term.

Approximately 750 Genentech employees at the facility are expected to be offered employment by Lonza, ensuring continuity and expertise at the Vacaville site. The acquisition aligns with Lonza’s strategic objectives to bolster its large-scale manufacturing solutions across its global network, emphasizing the importance of the U.S. market. Upon closure in H2 2024, the site will integrate into Lonza's Biologics division.

As a result of this acquisition, Lonza has updated its Mid-Term Guidance for 2024 – 2028, projecting a sales growth range of 12 – 15%, up from the previously set 11 – 13% CAGR. This transaction underscores Lonza's dedicated approach towards enhancing its service offerings and capabilities, meeting the burgeoning demand for commercial biologics manufacturing.