Lonza Buys Biologics Plant From Roche for $1.2 Billion

Genentech Production Facility in Vacaville, California, Expands Production Network in the USA

21.03.2024 - Lonza has signed an agreement to acquire Genentech's biologics manufacturing site in Vacaville, California (USA) from Roche. The Swiss pharmaceutical company announced plans to sell the site in May 2023.

The €1.1 billion ($1.2 billion) acquisition of Genentech's manufacturing facility in Vacaville, California, will significantly increase Lonza's large-scale biologics manufacturing capacity. This will enable the Swiss CDMO (contract development and manufacturing organization) to meet the demand for commercial contract manufacturing of mammalian cell culture antibodies from customers with existing commercial products as well as molecules on the path to commercialization within the Lonza network.

Located between San Francisco and Sacramento, the facility currently has a total bioreactor capacity of approximately 330,000 liters, making it one of the largest biologics manufacturing facilities in the world. Under the terms of the agreement, Lonza will offer employment to approximately 750 Genentech employees at the Vacaville facility.

The acquisition, which is expected to be completed in the second half of the year, is expected to boost the Basel-based group's sales. Lonza has raised its growth forecast for the period 2024-2028 from 11-13% to 12-15%.

Demand for commercial biologics capacity is expected to remain high across the CDMO industry. The acquisition of the Vacaville site expands Lonza's presence in the US and complements Lonza's biologics site in Portsmouth on the East Coast and its international network in Europe and Asia.

Lonza plans to invest approximately €513 million (CHF 500 million) to upgrade and expand capacity at the Vacaville site. The products currently manufactured at the Roche site will be supplied by Lonza with a medium-term volume commitment that will be phased out over time as the site transitions to other customers.


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