Key facts
- Lonza said the five sites are in Missouri, Wisconsin, Indiana and California, taking its US total to nine.
- Lonza expects the acquired sites to generate about 250 million francs in annual sales in 2028.
- Lonza said the two Wisconsin sites specialize in components for targeted cancer therapies and can handle highly potent compounds.
- Chief Financial Officer Philippe Deecke said the deal adds clinical manufacturing capabilities Lonza previously lacked in the US.
- Barclays described the deal as strategically positive for Lonza, citing higher utilization and improved margins.
- JPMorgan analysts called the sale a minor positive for Merck as it focuses on its life sciences business.
Lonza said on November 3 that it would buy five US manufacturing sites from Merck KGaA, more than doubling its footprint in the country and expanding its ability to produce advanced cancer and gene therapies. The acquisition lifts Lonza's US site count to nine, while allowing Germany's Merck to sharpen its focus on drug development.
On a call with investors and journalists, Lonza said the purchase price was around the midpoint of a range of 100 million to 600 million Swiss francs ($122 million to $734 million). The sites are in Missouri, Wisconsin, Indiana and California, and Lonza expects them to generate about 250 million francs in annual sales in 2028. The deal is expected to close in the middle of next year and will add about 1,100 employees.
Chief Executive Wolfgang Wienand said the deal "accelerates our US expansion plans, acquiring well-invested CDMO (contract development and manufacturing organisation) facilities with experienced teams that provide strong platforms for future investments as market demand evolves." Chief Financial Officer Philippe Deecke said the Merck deal adds clinical manufacturing capabilities that Lonza previously lacked in the US.
The two Wisconsin sites, which account for much of the acquired capacity, specialize in making key components used in targeted cancer therapies and include facilities designed to handle highly potent compounds. Lonza has been building its US contract manufacturing network through acquisitions, including Roche's biologics plant in Vacaville, California, in 2024 and a spray-drying facility in Bend, Oregon.
Barclays described the deal as "strategically positive" for Lonza, citing potential gains from higher utilization and improved margins. JPMorgan analysts said the sale was a "minor positive" for Merck as it focuses on its life sciences business. The deal comes as US President Donald Trump pushes for more domestic drug production and pharmaceutical companies commit billions of dollars to expanding US manufacturing.