Lonza Group stock expands US CDMO network with Merck deal

Published on 11/06/2026 at 12:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Lonza agreed to acquire five US CDMO sites from Merck KGaA, expanding its manufacturing network and adding capabilities in complex drug modalities. Closing is expected in mid-2027.

Lonza expands US CDMO capacity

Lonza agreed to acquire five US manufacturing sites from Merck KGaA.
The transaction adds capabilities in bioconjugates, payload-linkers, viral vectors and advanced drug-delivery technologies.
Closing is expected in mid-2027, subject to customary conditions.

Lonza Group, CH0013841017, Illustration mit AI erstellt.

Lonza is expanding its US contract development and manufacturing organization through an agreement announced on Tuesday, November 3, 2026, to acquire five CDMO manufacturing sites from Merck KGaA. The transaction strengthens the Swiss group's presence in the US and adds capacity across several complex pharmaceutical technologies, according to Lonza.

The sites are located in St. Louis, Missouri; Madison and Verona, Wisconsin; Carlsbad, California; and Indianapolis, Indiana. Their capabilities include bioconjugates, high-potency payload-linkers, viral vector solutions, lipid nanoparticles, liposomes and PEGylated proteins. Several facilities also provide aseptic fill-finish services.

Transaction adds long-term capacity

The acquisition will increase Lonza's US CDMO footprint from four sites to nine and add approximately 1,100 employees. Lonza said the US workforce will exceed 6,000 after the transaction closes. The acquired operations serve customers from clinical development through commercial manufacturing, including markets linked to antibody-drug conjugates and cell and gene therapies.

Lonza expects the acquired sites to generate around CHF 250 million in sales in full-year 2028. Their CORE EBITDA margin is expected to remain below Lonza's group level initially, with an insignificant impact on the group. The company expects the business to reach its future group margin level by the mid-2030s as the operations mature.

The purchase price is described as a low- to mid-triple-digit-million Swiss franc enterprise valuation. Lonza plans to fund the transaction with cash on hand and existing credit facilities while maintaining its BBB+ rating. The businesses will continue to operate independently until completion.

Closing remains a 2027 milestone

Closing is expected in mid-2027, subject to customary closing conditions. Lonza said the transaction does not affect its previously announced share buyback following the planned divestment of its Capsules & Health Ingredients business. For investors, the agreement adds operational scale and exposure to growth areas, but the initially lower margin of the acquired sites is a factor in assessing the earnings contribution.

Lonza stock traded at 716.50 euros on Lang & Schwarz at 12:20 CET on Friday, November 6, 2026. The real-time quote of Lonza Group stock provides the latest trading indication.