Lonza has announced its intention to acquire the Genentech large-scale biologics manufacturing site in Vacaville, California from Roche for US$1.2 billion. The Vacaville facility has a total bioreactor capacity of around 330,000 L, and is reportedly one of the largest biologics manufacturing sites in the world by volume. Under the agreement, approximately 750 Genentech employees at the Vacaville facility will be offered employment by Lonza.

The acquisition is intended to significantly enhance Lonza’s biologics manufacturing capacity to meet demand for commercial mammalian contract manufacturing from customers with existing commercial products, and molecules currently on the path to commercialization within the Lonza network. The company plans to invest approximately CHF 500 million (approximately US$ 565 m.) to upgrade the Vacaville facility and enhance capabilities to satisfy demand for the next generation of mammalian biologics therapies. Further to this, products currently manufactured at the site by Roche will be supplied by Lonza, with committed volumes over the medium term, phasing out over time as the site transitions to serve alternative customers.

Lonza intends to integrate the site into its Biologics division, joining a network of existing mammalian manufacturing sites in Visp (Switzerland), Slough (UK), Singapore, Portsmouth (USA) and Porriño (Spain).

The transaction is expected to close in the second half of 2024, subject to customary closing conditions.