©Reuters. The logo of Swiss contract drug manufacturer Lonza is seen at its headquarters in Basel, Switzerland, October 1, 2020. REUTERS/Arnd Wiegmann/file photo
ZURICH (Reuters) – Swiss drugmaker Lonza said on Wednesday it had signed a deal to buy the Genentech manufacturing plant in Vacaville, California, from drugmaker Roche for $1.2 billion in cash.
Lonza plans to invest around 500 million Swiss francs ($562.30 million) to upgrade the facility and improve the site’s capabilities to accommodate the next generation of mammalian biologic therapies, the company said in a statement.
“The Vacaville site is a highly valuable strategic acquisition that will make capacity immediately available to our customers and unlock future growth for our Biologics division,” Jean-Christophe Hyvert, president of Biologics at Lonza, said in the statement.
The transaction is expected to close in the second half of 2024, subject to customary closing conditions.
Basel-based Lonza also said it has updated its guidance for 2024-2028 to a sales growth range equal to the compound annual growth rate of 12-15% versus a previous estimate of 11%. -13%.
The Vacaville plant currently has a total bioreactor capacity of about 330,000 liters, making it one of the largest biologics manufacturing sites globally in terms of volume, Lonza said.