Lonza agreed to acquire five Merck KGaA contract development and manufacturing (CDMO) sites in the United States, expanding its footprint from four to nine sites and boosting U.S. workforce by nearly 25% through the addition of about 1,100 employees. The deal is described as valued in the low- to mid-triple-digit millions Swiss francs. The expanded network adds end-to-end development and manufacturing capability in the U.S., with a stated focus on growth areas including antibody-drug conjugates (ADCs) and other bioconjugates, viral vectors for cell and gene therapies, and advanced drug-delivery technologies. Lonza also framed the transaction as a fit with its “One Lonza” strategy and capital-allocation discipline. Lonza said the acquisition will complement its prior U.S. moves, including the Vacaville, California large-scale biologics manufacturing acquisition from Genentech and a planned commercial spray-drying facility in Bend, Oregon aimed at PSD-4 capacity. Merck KGaA will retain consumables, technologies and services supporting CDMO customers even as it exits the CDMO business. Capacity expansions like this can materially affect lead times for complex modalities, particularly as sponsors increasingly seek integrated development-and-manufacturing partners for ADCs and viral-vector programs.
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