Lonza to acquire five U.S. CDMO sites from Merck KGaA. Lonza will add bioconjugate, payload-linker and viral vector capacity and about 1,100 employees; closing is expected in mid-2027. Lonza has agreed to acquire five U.S. manufacturing sites from Merck KGaA, Darmstadt, Germany, a deal that would expand the Swiss contract development and manufacturing organization (CDMO) from four U.S. sites to nine and add about 1,100 employees.[1] Lonza valued the transaction in the low- to mid-triple-digit millions of Swiss francs, with closing expected in mid-2027.[1] For Merck KGaA, the sale fits a plan to narrow its life science portfolio. Kai Beckmann, Chairman of the Executive Board and Group CEO, said: "Today's announcement is another important step in advancing its mid- to long-term strategic agenda. A more concentrated Life Science portfolio will allow Pharm Exec to focus its investments on building its scientific leadership and make Pharm Exec an even stronger partner for its customers. "Our CDMO teams have built a strong foundation through their expertise and commitment. We believe Lonza is well positioned to build on that foundation and support the business's next phase of growth."[1] Key facts. * Buyer: Lonza; seller: Merck KGaA * Scope: five U.S. CDMO sites, about 1,100 staff * Sites: Missouri, Wisconsin (2), California, Indiana * Value: low- to mid-triple-digit million Swiss francs * Funding: cash on hand and credit facilities * 2028 sales: about 250 million Swiss francs * Closing: expected mid-2027, customary conditions "A more concentrated Life Science portfolio will allow us to focus our investments on building our scientific leadership and make us an even stronger partner for our customers." What is Lonza acquiring, and on what terms? The sites cover bioconjugates in St. Louis; high-potency payload-linkers in Madison and Verona, Wisconsin; viral vector manufacturing and aseptic fill-finish in Carlsbad, California; and lipid nanoparticle, liposome and PEGylated protein work, also with aseptic fill-finish, in Indianapolis.[1] Lonza will pay in cash, using funds on hand and existing credit facilities, and says the transaction maintains its BBB+ credit rating.[1] Until closing, the businesses will operate independently.[1] Lonza CEO Wolfgang Wienand told investors the price would be near the midpoint of a range of 100 million to 600 million Swiss francs.[2] The company expects the sites to contribute about 250 million Swiss francs in sales in 2028 at a margin below its own, with peak sales at the group's future margin level not anticipated until the mid-2030s.[1] Why is Lonza expanding its U.S. network now? Wienand tied the purchase to the company's strategy: "This acquisition is a strong fit with its One Lonza Strategy and reflects its disciplined approach to capital allocation, investing in opportunities that will drive long-term, profitable growth and deliver attractive returns. It will significantly expand its US presence, bringing Pharm Exec even closer to its customers, while increasing the resilience of its global manufacturing network. "With high demand for bioconjugates and viral vectors, the acquired sites will strengthen our ability to support customers from innovation to launch and commercial supply. I am particularly excited to welcome the highly experienced teams at these sites to One Lonza. It takes great people with deep scientific expertise and excellence in development and manufacturing to reliably translate breakthrough innovation into viable therapies for patients. Together, we will build an even stronger offering for our customers."[1] The release describes the United States as the largest market for innovative pharmaceuticals.[1] Chief Financial Officer Philippe Deecke said the deal adds clinical manufacturing capabilities Lonza previously lacked there.[2] The sites follow Lonza's 2024 purchase of a Roche biologics plant in Vacaville, California,[2] and a recently announced investment in a commercial spray-drying facility in Bend, Oregon.[1] In March, Lonza agreed to sell its Capsules & Health Ingredients business to Lone Star Funds at an enterprise value of 2.3 billion Swiss francs, a step it described as completing its shift to a pure-play CDMO, and said upfront proceeds would go toward organic growth and bolt-on acquisitions.[3] The latest release says the acquisition does not change a planned share buyback, which follows closing of that sale, expected by year-end.[1] How did Merck KGaA build this network? Merck KGaA consolidated its CDMO and contract testing units into a single Life Science Services organization in 2022, covering monoclonal antibodies, high-potency active pharmaceutical ingredients, antibody-drug conjugates, and viral and gene therapies.[4] It had also agreed to buy the CDMO Exelead for $780 million.[4] The materials reviewed do not specify which of the five sites trace to those earlier purchases, and Beckmann's statement frames the sale as portfolio concentration without detailing what Merck KGaA retains in contract manufacturing. How are analysts reading the transaction? In early assessments, Barclays described the deal as strategically positive for Lonza, citing potential gains from higher utilization and improved margins, while JPMorgan analysts called the sale a minor positive for Merck KGaA as it concentrates on life sciences.[2] Because the acquired sites carry a lower initial margin, returns appear to depend on filling existing capacity, which Lonza says is available alongside additional expansion space.[1] Lonza confirmed its 2026 financial outlook and said the contribution would have an insignificant impact on the group.[1] What questions remain? Closing is subject to customary conditions.[1] Lonza disclosed the price only as a range and did not release customer contracts or current site utilization. After closing, its stated priorities are continuity for customers, support for employees through the transition, and integration into its global network.[1] 1. Lonza signs agreement to acquire US CDMO network from Merck KGaA, Darmstadt, Germany, and significantly expands its US presence. News release. Lonza. November 3, 2026. Accessed November 3, 2026. 3. Lonza completes its transformation to a pure-play CDMO with agreement to divest Capsules & Health Ingredients. News release. Lonza. March 6, 2026. Accessed November 3, 2026.

Lonza buys 5 sites from Germany's Merck to more than double US footprint. Published on 11/03/2026 at 06:55 am EST Nov 3 (Reuters) - Contract drug manufacturer Lonza said on Tuesday it would buy five US manufacturing sites from Merck KGaA, more than doubling its footprint in the country and expanding its capabilities to produce advanced cancer and gene therapies. The acquisition will increase Lonza's US site count to nine, while allowing Germany's Merck to sharpen its focus on drug development. Lonza said on a call with investors and journalists that the purchase price was around the midpoint of a range of 100 million to 600 million Swiss francs ($122 million to 734 million). The deal comes as US President Donald Trump pushes for more domestic drug production and pharmaceutical companies commit billions of dollars to expanding US manufacturing. "It accelerates our US expansion plans, acquiring well-invested CDMO (contract development and manufacturing organisation) facilities with experienced teams that provide strong platforms for future investments as market demand evolves," Chief Executive Wolfgang Wienand said. Lonza expects the sites, located in Missouri, Wisconsin, Indiana and California, to generate about 250 million francs in annual sales in 2028. EXPANDING IN THE US Lonza has been building its US contract manufacturing network through acquisitions, including Roche's biologics plant in Vacaville, California, in 2024 and a spray-drying facility in Bend, Oregon. Chief Financial Officer Philippe Deecke said the Merck deal adds clinical manufacturing capabilities that Lonza previously lacked in the US. The two Wisconsin sites, which account for much of the acquired capacity, specialise in making key components used in targeted cancer therapies and include facilities designed to handle highly potent compounds. Barclays described the deal as "strategically positive" for Lonza, citing potential gains from higher utilisation and improved margins. JPMorgan analysts said the sale was a "minor positive" for Merck as it focuses on its life sciences business. The deal is expected to close in the middle of next year and will add about 1,100 employees to Lonza. The company expects the sites to reach peak sales and profitability by the mid-2030s. ($1 = 0.8180 Swiss francs) (Reporting by Danny Callaghan, Bhanvi Satija and Marleen Kaesebier. Editing by Anna Pruchnicka and Mark Potter) By Bhanvi Satija and Marleen Kaesebier (C) Reuters - 2026

Lonza acquires US CDMO network from Merck KGaA. November 3, 2026 4 mins read Basel, Switzerland, November 3, 2026 Ad hoc announcement pursuant to Art. 53 KR Lonza signs agreement to acquire a US CDMO network from Merck KGaA, Darmstadt, Germany, and significantly expands its presence in the US * Lonza acquires five CDMO production sites and around 1,100 highly qualified employees, more than doubling its presence in the US to nine CDMO sites with more than 6,000 employees in the US. * The transaction strengthens Lonza's end-to-end offering in the US and complements clinical and commercial development and manufacturing capabilities for bioconjugates, payload-linkers[1] and viral vectors. * Lonza will acquire the assets and associated businesses at a total enterprise value in the low to mid three-digit million range in Swiss francs. * Lonza's financial outlook for 2026 and the organic growth model, including the associated medium-term financial targets, are confirmed. Lonza, the world's leading contract development and manufacturing organization (CDMO), announced today that it has signed a definitive agreement to acquire five CDMO production sites in the US from Merck KGaA, Darmstadt, Germany, at a total enterprise value in the low to mid three-digit million range in Swiss francs. The acquisition expands Lonza's CDMO production presence in the US from four to nine sites and complements the global network with end-to-end development and manufacturing capabilities in the US, the largest market for innovative medicines. The acquired network supports customers from clinical development to commercialization in attractive growth areas such as antibody-drug conjugates (ADCs) and other bioconjugates, viral vectors for cell and gene therapies, and advanced drug delivery technologies. Together with ongoing investments in CDMO readiness in Vacaville, California, and the recently announced investment in a commercial spray-drying facility in Bend, Oregon, this acquisition represents a further step in building an even more comprehensive and competitive CDMO network in the US. Wolfgang Wienand, Chief Executive Officer of Lonza, commented: "This acquisition fits excellently with our One Lonza strategy and reflects our disciplined approach to capital allocation: we invest in opportunities that drive long-term, profitable growth and generate attractive returns. It will significantly expand our presence in the US and bring us even closer to our customers, while also increasing the resilience of our global production network. Given the high demand for bioconjugates and viral vectors, the acquired sites will strengthen our ability to support customers from innovation to market launch and commercial supply. I am particularly looking forward to welcoming the highly experienced teams at these sites to One Lonza. It takes great people with extensive scientific expertise as well as excellent development and manufacturing capabilities to reliably translate groundbreaking innovations into viable therapies for patients. Together, we will further strengthen our offering for our customers." Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck KGaA, Darmstadt, Germany, commented: "Today's announcement is another important step in implementing our medium-term strategic agenda. A more focused life-science portfolio will enable us to concentrate our investments on expanding our scientific leadership position and to become an even stronger partner for our customers. Our CDMO teams have created a strong foundation with their expertise and commitment. We are convinced that Lonza is well positioned to build on this foundation and support the next growth phase of the business." Under the terms of the agreement, around 1,100 highly qualified employees will become part of Lonza's global workforce and increase the number of employees in the US to more than 6,000. The sites that Lonza has agreed to acquire expand the company's capabilities in the following technologies and in services from clinical development to commercial manufacturing: * St. Louis, Missouri: bioconjugates. * Madison and Verona, Wisconsin: high-potency payload-linkers. * Carlsbad, California: end-to-end solutions for viral vectors, including aseptic filling and final packaging. * Indianapolis, Indiana: solutions for lipid nanoparticles, liposomes and PEGylated proteins, including aseptic filling and final packaging. For full-year 2028, the acquired sites are expected to generate revenue of around CHF 250 million with a CORE EBITDA margin below that of Lonza, with an immaterial impact on the group. After integration, the sites are expected to benefit from Lonza's consistent focus on the CDMO business and to achieve significant, profitable growth over time. This is to be supported by existing available capacity and additional expansion space; further investments will be aligned with the development of market demand. Lonza expects the business to reach peak revenue at the group's future margin level by the mid-2030s. Transaction details. Under the terms of the agreement, Lonza will acquire the five sites and the associated businesses at a total enterprise value in the low to mid three-digit million range in Swiss francs. The consideration will be paid in cash and financed from existing cash and Lonza's existing credit facilities, while maintaining the company's BBB+ rating. Closing of the transaction is expected in mid-2027 and is subject to customary closing conditions. Lonza and Merck KGaA, Darmstadt, Germany, will work closely together to support a smooth transition of the businesses. Until closing, the businesses will continue to operate independently. After closing, Lonza will initially ensure continuity for customers, support employees during the transition and fully integrate the acquired business areas into Lonza's global network. This transaction has no impact on Lonza's previously announced share buyback following completion of the divestment of the Capsules & Health Ingredients business[2]. BofA Securities is acting as financial advisor to Lonza. Further details on the transaction can be found in the accompanying investor presentation. [1] High-potency. [2] Closing of the divestment of the Capsules & Health Ingredients business is expected by the end of 2026. About Lonza Lonza is the world's leading contract development and manufacturing organization (CDMO) for the healthcare industry. Lonza's global team of around 17,000 employees[3] works across three continents with pharmaceutical and biotech companies to translate their groundbreaking innovations into viable therapies. This enables customers to make life-saving and life-improving treatments accessible to patients worldwide through a combination of leading science, intelligent technology and lean manufacturing. In the first half of 2026, Lonza generated revenue of CHF 3.4 billion and CORE EBITDA of CHF 1.2 billion. [3] Refers to Lonza's continuing CDMO business, excluding Capsules & Health Ingredients.