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Lonza to Buy U.S. Manufacturing Facility From Roche For $1.2 Billion

By Andrea Figueras


Lonza agreed to buy a manufacturing facility in the U.S. from Roche for around $1.2 billion in cash as it seeks to boost growth of its biologics division.

The deal, due to close in the second half subject to customary conditions, is expected to increase sales growth, the Swiss life-sciences company said Wednesday, raising its mid-term target for 2024-28.

Lonza now estimates a compound annual sales growth rate between 12% and 15% at constant currency, while it previously anticipated it in a range of 11% to 13%.

The rest of its guidance remains unchanged.

Lonza plans to invest around CHF500 million to upgrade the Genentech facility in Vacaville, Calif., one of the largest biologics manufacturing sites in the world by volume.

Roche's products currently manufactured at the site will be supplied by Lonza, with committed volumes over the medium term, phasing out over time, Lonza said.

As part of the agreement, Lonza will offer employment to some 750 Genentech workers at the U.S. facility.

The deal is expected to boost the company's large-scale biologics manufacturing capacity, helping it meet demand for commercial mammalian contract manufacturing from customers with existing commercial products, and molecules currently on the path to commercialization, it said.


Write to Andrea Figueras at


(END) Dow Jones Newswires

March 20, 2024 02:59 ET (06:59 GMT)

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