Lonza Signs Agreement to Acquire Large-Scale Biologics Site in Vacaville (US) from Roche

Lonza Group AG / Key word(s): Acquisition/Investment Lonza Signs Agreement to Acquire Large-Scale Biologics Site in Vacaville (US) from Roche 20-March-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

• Lonza has signed an agreement to acquire the Genentech manufacturing facility in Vacaville (US) from Roche for USD 1.2 billion in cash
• Vacaville (US) site is one of the largest biologics manufacturing facilities in the world by volume
• Acquisition is set to increase Lonza’s large-scale biologics manufacturing capacity for mammalian therapies and significantly extend the presence of its facility network in the US
• Lonza plans to invest approximately CHF 500 million to upgrade the facility and enhance capabilities at the site to accommodate the next generation of mammalian biologics therapies 
• Roche products currently manufactured at the site will be supplied by Lonza, with committed volumes over the medium term, phasing out as the site transitions to serve alternative customers
• The Lonza Mid-Term Guidance 2024 – 2028 sales growth range was set at 11 – 13% CAGR in CER¹, and has now been updated to 12 – 15%

Basel, Switzerland, 20 March 2024 – Lonza, a global manufacturing partner to the pharmaceutical, biotech and nutraceutical markets, today announced it has signed an agreement to acquire the Genentech large-scale biologics manufacturing site in Vacaville, California (US) from Roche for USD 1.2 billion. 

The acquisition will significantly increase Lonza’s large-scale biologics manufacturing capacity to meet demand for commercial mammalian contract manufacturing from customers with existing commercial products, and molecules currently on the path to commercialization within the Lonza network. The Vacaville (US) facility currently has a total bioreactor capacity of around 330,000 liters, making it one of the largest biologics manufacturing sites in the world by volume. Under the agreement, approximately 750 Genentech employees at the Vacaville (US) facility will be offered employment by Lonza.