Lonza to buy biologics site from Roche in US for $1.2 billion By Reuters

© Reuters. The emblem of Swiss contract drug maker Lonza is seen at its headquarters in Basel, Switzerland October 1, 2020. REUTERS/Arnd Wiegmann/file picture

ZURICH (Reuters) -Swiss contract drug producer Lonza stated on Wednesday it has signed an settlement to amass the Genentech manufacturing facility in Vacaville, California, from drugmaker Roche for $1.2 billion in money.

Lonza plans to take a position round 500 million Swiss francs ($562.3 million) to improve the power and improve capabilities on the web site to accommodate the following technology of mammalian biologics therapies, the corporate stated in an announcement.

The Vacaville facility presently has a complete bioreactor capability of round 330,000 liters, making it one of many largest biologics manufacturing websites worldwide by quantity, Lonza stated.

“The Vacaville web site is a extremely precious strategic acquisition that can make capability instantly obtainable for our clients and unlock future development for our Biologics division,” Jean-Christophe Hyvert, president of Biologics at Lonza, stated within the assertion.

The transaction is predicted to shut within the second half of 2024, topic to customary closing circumstances.

Basel-based Lonza additionally raised its 2024-2028 gross sales goal to a spread of 12%-15% compound annual development price, from its 11-13% development estimate beforehand.

Underneath the deal, the about 750 Genentech staff on the facility might be provided employment by Lonza and the merchandise presently produced on the web site by Roche will proceed to be equipped by Lonza for a transition interval, Roche stated.

Susanne Hundsbaek-Pedersen, world head of pharma technical operations at Roche, stated the sale of the power was a part of a long-term community technique and optimisation plan, to ship a “extra diversified portfolio together with new drug modalities.”