Swiss-based contract drug manufacturer Lonza announced on Wednesday its intention to acquire the Genentech manufacturing facility in Vacaville, California, from pharmaceutical giant Roche for a whopping $1.2 billion in cash.
The deal includes Lonza’s plans to infuse approximately 500 million Swiss francs ($562.30 million) into upgrading the facility. This investment aims to bolster the site’s capabilities, aligning it with the evolving demands of the next generation of mammalian biologics therapies.
Jean-Christophe Hyvert, President of Biologics at Lonza, expressed enthusiasm, stating, “The Vacaville site is a highly valuable strategic acquisition that will make capacity immediately available for our customers and unlock future growth for our Biologics division.”
Pending customary closing conditions, the transaction is anticipated to conclude in the latter half of 2024.
In tandem with this acquisition, Lonza has revised its sales growth projection for the years 2024-2028 to a compound annual growth rate ranging between 12% and 15%, an increase from the previous estimate of 11% to 13%.
Currently boasting a total bioreactor capacity of around 330,000 liters, the Vacaville facility ranks among the largest biologics manufacturing sites globally in terms of volume, according to Lonza.
