Lonza Concludes $1.2 Billion Acquisition of Roche’s U.S. Biologics Facility

Lonza, a leading global healthcare development and manufacturing organization, announced on October 1, 2024, that it has completed its $1.2 billion acquisition of Roche’s Genentech large-scale biologics manufacturing facility in Vacaville, California. This acquisition significantly enhances Lonza's mammalian manufacturing capabilities in the U.S., which is the largest pharmaceutical market worldwide. The Vacaville facility establishes a robust commercial manufacturing presence on the West Coast, strategically positioned near San Francisco's thriving pharmaceutical and biotech ecosystem. This complements Lonza’s existing manufacturing operations on the East Coast in Portsmouth, New Hampshire, as well as its extensive international network across Europe and the Asia Pacific.

The Vacaville site features a substantial bioreactor capacity of approximately 330,000 liters, making it one of the largest biologics manufacturing facilities globally. The acquisition bolsters Lonza's manufacturing capabilities for late-stage clinical and commercial products while also supporting new molecules that are progressing toward commercialization within its network. With this integration, the Vacaville facility will operate under Lonza’s Biologics division, bringing over 750 skilled employees into the company.

Wolfgang Wienand, CEO of Lonza, expressed his enthusiasm about the acquisition, stating, “The successful acquisition of the Vacaville site marks a major milestone for Lonza and reinforces our commitment to delivering long-term value for our customers and shareholders. As this site becomes part of our Biologics division, we anticipate welcoming new customer projects to address the sustained demand for commercial biologics manufacturing. I am also thrilled to incorporate over 750 highly skilled Vacaville colleagues into our global team as they embark on this new chapter with Lonza.”

This acquisition aligns with Lonza's broader investment strategy, which includes ongoing enhancements in large-scale bioconjugation in Visp, Switzerland, and drug product manufacturing in Stein, Switzerland. These initiatives are designed to meet the increasing demand for comprehensive, end-to-end manufacturing of complex biologics. Lonza plans to invest around CHF 500 million to upgrade the Vacaville facility and enhance its capabilities, positioning it to address the next generation of mammalian biologics therapies.

In the interim, products previously manufactured at the Vacaville site will continue to be supplied to Roche under committed minimum volumes over the medium term. This transition will gradually phase out as the facility shifts focus to serve alternative customers, ensuring a smooth integration into Lonza's operations. By enhancing its U.S. footprint and investing in cutting-edge capabilities, Lonza is poised to meet the growing demand for biologics and strengthen its position as a leader in the healthcare manufacturing sector. The acquisition not only adds significant capacity but also marks a strategic move to capitalize on emerging opportunities in the biologics market.