Lonza to Acquire Merck CDMO Operations Across Five US Locations

COMPANY PROFILE
  • Lonza has signed a definitive agreement to acquire Merck’s CDMO business for a mid-triple-digit million-euro amount. The transaction is expected to close in mid-2027, subject to regulatory approvals and other closing conditions.
  • The proposed acquisition includes CDMO operations at five US locations: Carlsbad, California; Madison and Verona, Wisconsin; St. Louis, Missouri; and Indianapolis, Indiana.

Lonza has signed a definitive agreement to acquire the contract development and manufacturing organization (CDMO) business within Merck’s Life Science sector for a mid-triple-digit million-euro amount. The transaction is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions.

The proposed acquisition includes development and manufacturing services for complex modalities, supporting customers as therapies progress from development through manufacturing. The operations covered by the transaction span five US locations: Carlsbad, California; Madison and Verona, Wisconsin; CDMO bioconjugation operations in St. Louis, Missouri; and Indianapolis, Indiana.

For Merck, the divestment is part of its mid- to long-term strategy to focus its portfolio on innovation-driven businesses. The company said a more concentrated Life Science portfolio would allow it to direct investment toward technologies and capabilities supporting its pharmaceutical, biotechnology and CDMO customers. Merck will continue supplying these customers with consumables, technologies and services used across biopharmaceutical development and manufacturing.

BioReliance® Contract Testing Services is excluded from the transaction and will remain part of Merck’s Life Science portfolio. Until the deal closes, the CDMO business will continue operating within Merck’s Life Science sector. Both companies said they would work together during the transition, with a focus on supporting employees, customers and operations and maintaining program and supply continuity.

“The acquisition would provide customers with broader capabilities and additional manufacturing capacity in the US, which he described as a key market for the company.”

Lonza CEO Wolfgang Wienand

Lonza also plans to welcome the acquired business’s employees as part of its organization.

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