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Lonza, a leading contract development and manufacturing organization (CDMO), has confirmed the acquisition of Roche’s Genentech, one of the biggest biotechnology manufacturing facilities in the world.

The facility, domiciled in Vacaville, California, US, focuses on using mammalian cells to produce pharmaceutical proteins, which are thereafter used in therapies for various morbidities associated with oncology, ophthalmology, and neurology.

The deal is a huge milestone for Lonza since the plant, with an estimated total bioreactor capacity of 330,000, expands the firm’s capacity for mammalian manufacturing in the United States, the largest pharmaceutical market in the world.

“The successful acquisition of the Vacaville site marks a major milestone for Lonza and for our commitment to deliver long-term value for our customers and shareholders.”

 

Wolfgang Wienand, CEO, Lonza.

This acquisition completion follows an agreement that was signed on 20 March 2024, where Roche agreed to hand over Genentech to Lonza for a reported 1.2 billion in cash.

In the terms of the agreement, an estimated 750 employees who worked in the plant under the Roche group would be offered an opportunity to continue under the new ownership.

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Moving forward, Lonza plans to invest around $590 million in additional capital expenditures to upgrade its newly acquired Vacaville facility and improve its capabilities to meet the growing demand for next-generation mammalian biologic therapies.

In the deal, the Swiss CDMO has committed to continue supplying the biologics currently manufactured at the site by Roche with a gradual phase-out as the firm shifts to serve new customers.

For Lonza, this agreement is monumental as it establishes a major commercial manufacturing presence on the West Coast, complementing its existing Biologics facility on the East Coast in Portsmouth (US), as well as its global network across Europe and Asia.

This confirms the firm’s position as a top player in the CDMO industry, where demand for capacity for commercial biologics is anticipated to remain high.

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