- Lonza is acquiring Genentech’s biologics manufacturing facility in Vacaville, California for $1.2 billion and plan to invest an additional 500 million Swiss francs ($561 million) to expand the facility.
- Share price rebounds as Lonza upgrade four-year growth forecast
Lonza, one of the world’s largest healthcare manufacturing organisations, has announced its acquisition of Genentech’s biologics manufacturing facility in Vacaville, California. The deal, worth $1.2 billion, is set to bolster Lonza’s large-scale biologics manufacturing capacity for both commercial-scale mammalian contract manufacturing and clinical-stage projects.
The Vacaville facility, one of the largest biologics manufacturing sites by volume, boasts a bioreactor capacity of around 330,000 litres. As part of the acquisition, Lonza will extend job offers to approximately 750 Genentech employees currently working at the site.
In addition to the acquisition, Lonza has plans for a future expansion project worth around 500 million Swiss francs ($561 million). This investment aims to “satisfy demand for the next generation of mammalian biologics therapies,” according to the company.
Upon completion of the deal, expected in the second half of 2024, the Vacaville site will join Lonza’s Biologics division. This division operates manufacturing facilities in Switzerland, Singapore, Spain, the United States, and the United Kingdom.
Jean-Christophe Hyvert, President, Biologics, Lonza, commented: “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. It will support us in providing a commercialization path to existing customers and incremental large-scale commercial capacity to our partners. We have deep and long-standing industrial expertise in delivering commercial scale manufacturing services for our customers’ therapies. In combining this with the strong legacy of the Vacaville facility, its highly skilled colleague community and its proven track record on quality, we are excited to take our leading large-scale mammalian offering to its next chapter of growth.”
Lonza share price rebounds
In light of this strategic acquisition, Lonza has upgraded its mid-term guidance from 2024 through 2028.
The manufacturer now expects sales to grow 12% to 15% over the four-year period, up from a previous estimate of 11% to 13%.
The share price has now returned to early 2023-levels, recovering from the share price drop in September 2023 when former CEO Pierre-Alain Ruffieux left the company by mutual agreement
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