📢 Lonza has agreed to acquire Genentech’s biologics manufacturing site in Vacaville, CA for $1.2 billion. 🏭 The site has a total bioreactor capacity of 330,000 liters and will be upgraded to enhance its ability to produce next-generation biologic therapies. Lonza will manufacture existing products for Roche at a committed volume of 30% of capacity in 2025. The deal is expected to close in the second half of this year.
📢 Lonza Acquires Genentech’s Biologics Site for $12B – Boosting Next-Gen Therapies
Introduction:
Lonza has announced its acquisition of Genentech’s biologics manufacturing site in Vacaville, CA, for $1.2 billion. This deal will significantly increase Lonza’s capacity to manufacture biologics at a commercial scale.
Main points:
- The Vacaville plant has a total bioreactor capacity of about 330,000 liters, making it one of the world’s largest biologics manufacturing sites.
- Lonza plans to invest approximately CHF 500 million ($556.6 million) to upgrade the Vacaville plant, enhancing its ability to meet the demand for next-generation mammalian biologics therapies.
- During the upgrade, Lonza will manufacture existing products for Roche at a committed volume of 30% of capacity in 2025.
- Lonza expects contract development and manufacturing organizations (CDMOs) to command more than half of the market share of mammalian drug substance manufacturing capacity by 2028.
- The acquisition of the Vacaville site will help Lonza meet the demand for mammalian contract manufacturing from customers with existing commercial products and those in the process of developing them.
Conclusion:
Lonza’s acquisition of Genentech’s Vacaville site will significantly expand its biologics manufacturing capacity and enhance its ability to meet the growing demand for mammalian biologics therapies. This deal aligns with Lonza’s strategy to become a leading player in the CDMO market, which is expected to have a growing market share in the coming years.
