Lonza Group stock in focus after Merck CDMO deal
Published on 11/04/2026 at 12:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSUS network expands through Merck deal
- Lonza agreed to acquire five US CDMO sites from Merck KGaA on November 3, 2026.
- The transaction adds bioconjugation, payload-linker, viral-vector and drug-delivery capabilities.
- Closing is expected in mid-2027, subject to customary conditions.
Lonza agreed on Tuesday, November 3, 2026, to acquire five contract development and manufacturing organization sites in the United States from Merck KGaA. The Lonza announcement puts the enterprise valuation in the low- to mid-triple-digit millions of Swiss francs and expects the transaction to close in mid-2027, subject to customary closing conditions.
The acquisition will increase Lonza's US CDMO network from four to nine sites and add approximately 1,100 employees. Lonza said its US workforce will rise to more than 6,000 people. Until closing, the acquired businesses will continue to operate independently within Merck KGaA.
Capabilities broaden across key modalities
The sites add capabilities from clinical development through commercial manufacturing. The St. Louis, Missouri, operation specializes in bioconjugates, while facilities in Madison and Verona, Wisconsin, produce high-potency payload-linkers used in antibody-drug conjugates.
A Carlsbad, California, site provides end-to-end viral-vector services, including aseptic fill-finish. The Indianapolis, Indiana, operation covers lipid nanoparticles, liposomes and PEGylated proteins, also with aseptic fill-finish capabilities. Together, the sites broaden Lonza's offering in bioconjugates, cell and gene therapy and advanced drug delivery.
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 margin initially, with an insignificant impact on the group. The company said the businesses could reach Lonza's future group margin level at peak sales by the middle of the 2030s.
Cash funding preserves buyback plan
The consideration will be paid in cash using cash on hand and existing credit facilities, according to Lonza. The company said the funding structure maintains its BBB+ rating and does not affect the previously announced share buyback after the expected year-end 2026 closing of the Capsules & Health Ingredients divestment.
Chief Executive Wolfgang Wienand described the transaction as a fit with Lonza's One Lonza strategy and said it should bring the company closer to US customers while increasing the resilience of its manufacturing network. The strategic logic is strongest in complex modalities where the acquired sites add complementary capabilities, but the below-group margin outlook makes integration and utilization important for future earnings quality.
Lonza Group stock traded at 718.50 euros on Lang & Schwarz at 12:19 CET on Wednesday, November 4, 2026.
For investors, the next material milestones are the customary closing conditions and the planned mid-2027 completion. The acquired assets are not yet part of Lonza's operating results, so the 2028 sales contribution remains a forward business target rather than current revenue.
Lonza Group at a glance
- Company: Lonza Group AG
- ISIN: CH0013841017
- Lang & Schwarz quote: 718.50 euros at 12:19 CET on November 4, 2026
- Acquisition: Five Merck KGaA US CDMO sites
- Expected closing: Mid-2027
The real-time quote of Lonza Group stock is available on the stock snapshot page.
European healthcare and industrial shares remain sensitive to investment plans, demand for advanced therapies and financing conditions; see the latest SMI market reports.
