Pharma manufacturing news — 4 November 2026: Lonza has agreed to acquire five US contract development and manufacturing (CDMO) sites from Merck KGaA, expanding its US network and adding manufacturing capabilities for complex medicines. The agreement was announced on 3 November and is expected to close in mid-2027, subject to customary conditions.
What the agreement includes
The transaction covers five manufacturing locations: St. Louis, Missouri; Madison and Verona, Wisconsin; Carlsbad, California; and Indianapolis, Indiana. Around 1,100 employees are expected to join Lonza when the deal closes. Lonza says the acquisition would take its US CDMO footprint from four sites to nine and raise its US workforce to more than 6,000.
The sites bring capabilities across several specialised areas:
- St. Louis: bioconjugates, including capabilities relevant to antibody–drug conjugates.
- Madison and Verona: high-potency payload-linkers.
- Carlsbad: viral-vector development and manufacturing, including aseptic fill-finish.
- Indianapolis: lipid nanoparticles, liposomes and PEGylated proteins, also including aseptic fill-finish.
Why the deal matters for drug developers
Biologics, antibody–drug conjugates, cell and gene therapies, and other advanced medicines can require specialised process development and manufacturing capacity. By adding these capabilities to its existing network, Lonza aims to support more development programmes through clinical supply and, where programmes progress, commercial manufacturing. The enlarged network may also give customers additional US manufacturing options for complex modalities.
The announcement does not mean capacity or ownership changes immediately. Until completion, the businesses are expected to operate independently. Both companies say they will work through the transition with a focus on continuity for customers and employees. The closing remains subject to customary conditions, with mid-2027 the current expected timing.
What to watch next
Customers and suppliers will be watching for further details on integration, site investment and continuity arrangements as the transaction moves toward closing. Lonza has said the acquired business is expected to contribute around CHF 250 million in sales in 2028, with a core EBITDA margin below Lonza’s current level. That estimate is a company forecast and will depend on the transaction closing and subsequent performance.
Merck KGaA says the divestment is part of a more focused Life Science portfolio. It has also clarified that BioReliance Contract Testing Services is not included in the sale and will remain within Merck’s Life Science business.
Sources
Read the announcements from Lonza and Merck KGaA. This article summarises company announcements issued on 3 November 2026; transaction terms and timing remain subject to closing conditions.
