Lonza Acquires Roche’s Massive Biologics Production Facility in Vacaville, California for $1.2 Billion

Facts:
- Lonza, a Swiss contract manufacturer, is purchasing a Roche biologics manufacturing facility located in Vacaville, California, for $1.2 billion in cash.
- This acquisition aims to bolster Lonza's large-scale biologics manufacturing capacity for both commercial-scale mammalian contract manufacturing and clinical-stage projects.
- The Vacaville facility features a bioreactor capacity of approximately 330,000 liters, making it one of the world's largest biologics manufacturing sites by volume.
- Around 750 Genentech employees at the site will receive job offers from Lonza.
- Lonza intends to invest an additional CHF 500 million ($561.3 million) to upgrade the facility and fulfill the demand for "the next generation" of mammalian biologics.
- The agreement includes supplying Roche products currently manufactured at the site, with a gradual transition to serving Lonza's clients.
- The deal is expected to close during the second half of 2024, after which the facility will integrate into Lonza's Biologics division.
- The move comes amid industry shifts, including the Novo Holdings-Catalent merger and the potential impact on the global CDMO landscape.
- Lonza anticipates a sales compound annual growth rate (CAGR) in the mid-teens for biologics between 2024 and 2028.