Lonza, a Switzerland-based contract development and manufacturing organization (CDMO), has signed an agreement to acquire five manufacturing sites from Germany’s Merck KGaA in a deal aimed at expanding its US operations and strengthening its capabilities in advanced pharmaceutical manufacturing.
Announced on November 3, 2026, the acquisition will add approximately 1,100 employees to Lonza’s workforce and increase its US manufacturing network from four sites to nine. Following the transaction, Lonza will have more than 6,000 employees across its US operations.
The financial value of the transaction is in the low- to mid-triple-digit millions of Swiss francs. The deal is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions.
The five facilities will expand Lonza’s manufacturing capabilities across several important areas of pharmaceutical development, including antibody-drug conjugates (ADCs), bioconjugates, high-potency drug ingredients, viral vectors and advanced drug delivery technologies.
The facilities included in the agreement are located in four US states:
- St. Louis, Missouri: Manufacturing capabilities for bioconjugates.
- Madison and Verona, Wisconsin: Production of high-potency payload-linkers used in advanced drug development.
- Carlsbad, California: Viral vector manufacturing, including aseptic fill-finish capabilities.
- Indianapolis, Indiana: Manufacturing solutions for lipid nanoparticles, liposomes and PEGylated proteins, also including aseptic fill-finish capabilities.
These capabilities are becoming increasingly important as pharmaceutical companies invest in more complex treatments, including targeted cancer medicines and cell and gene therapies.
ADCs, for example, combine antibodies with powerful drug compounds to deliver treatment directly to cancer cells. Viral vectors are also widely used in gene therapy research and manufacturing to deliver genetic material into cells.
By adding these facilities, Lonza aims to provide pharmaceutical and biotechnology companies with broader manufacturing support, from clinical development through commercial production.
Wolfgang Wienand, Chief Executive Officer of Lonza, said the acquisition fits the company’s long-term growth strategy and will strengthen its presence in the US, which is the world’s largest market for innovative medicines.
He also highlighted the growing demand for bioconjugates and viral vectors, adding that the additional facilities and experienced teams would help Lonza support customers from early development to commercial supply.
For Merck KGaA, the agreement is part of a broader strategy to focus its Life Science business on areas where it sees stronger opportunities for long-term growth and innovation.
Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck KGaA, said the company’s CDMO teams had built a strong foundation and that Lonza was well positioned to support the business’s next stage of development.
Merck will continue to provide pharmaceutical, biotechnology and CDMO customers with its broader portfolio of technologies, consumables and services. Its BioReliance contract testing services business is not included in the transaction and will remain part of its Life Science portfolio.
Financially, Lonza expects the acquired sites to generate approximately CHF 250 million in sales in 2028. Their initial operating margins are expected to be below Lonza’s current group level. However, the company believes the facilities can deliver profitable growth over time by improving capacity utilisation and expanding production in response to customer demand.
Lonza expects the acquired business to reach peak sales at the company’s future group margin level by the mid-2030s.
Until the transaction is completed, the five businesses will continue operating independently under Merck KGaA. Both companies will work together to ensure continuity for employees and customers during the transition.
The acquisition follows Lonza’s other recent investments in the US, including its work to expand biologics manufacturing capabilities in Vacaville, California, and the planned development of a commercial spray-drying facility in Bend, Oregon.
The latest deal represents another important step in Lonza’s strategy to strengthen its position in the global CDMO market. With growing demand for complex biologics, targeted cancer treatments and gene therapies, the expanded manufacturing network could help the company support more pharmaceutical and biotechnology programmes worldwide.