Lonza completes acquisition of $1.2bn Genentech facility

Swiss contract development and manufacturing organization (CDMO) Lonza announced the completion of its $1.2 billion large-scale biologics facility from Genentech in Vacaville, California.

The site is one of the largest biologics manufacturing facilities in the world, having a total bioreactor capacity of about 300,000 liters. The site will be part of Lonza Biologic’s mammalian business unit and employs 750 people.

The facility significantly expands Lonza’s capacity for mammalian manufacturing in the US, cementing the firm’s West Coast manufacturing presence near San Francisco’s pharmaceutical and biotechnology hub.

A spokesperson for Lonza told BioProcess Insider that “key components of the plan include the onboarding of our Vacaville workforce, migrating the site to our digital systems, and incorporating our operations into the site. During this transition, our priority is maintaining business continuity, ensuring that operations remain seamless and uninterrupted.”

The additional large-scale capacity bolsters Lonza’s commercial manufacturing and supports its pipeline of molecules on their path to market.

When the acquisition was announced in March, Jean-Christophe Hyvert, president of Biologics at Lonza said “The Vacaville site is a highly valuable strategic acquisition that will make capacity immediately available for our customers and unlock future growth for our Biologics division. It will support us in providing a commercialization path to existing customers and incremental large-scale commercial capacity to our partners.”

The acquisition complements the firm’s East Coast manufacturing presence in Portsmouth, New Hampshire as well as its international networks in Europe and Asia.

“The successful acquisition of the Vacaville site marks a major milestone for Lonza, and for our commitment to deliver long-term value for our customers and shareholders,” said Wolfgang Wienand, CEO of Lonza. “As the Vacaville site joins our Biologics division, we look forward to bringing new customer projects into the facility to meet sustained demand for commercial biologics manufacturing across our business. I am also delighted to welcome more than 750 highly skilled Vacaville colleagues into our global team, as they begin a new chapter with Lonza.”

Lonza plans to invest about CHF 500 million ($589 million) to upgrade the facility. The spokesperson said that the investment will be used to “replace end of life equipment, upgrade automation systems, and enhance capabilities to satisfy demand for the next generation of mammalian biologics.”

Products that were previously made at the site will be sent to Roche at committed minimum volumes over the medium term, phasing out as the site transitions to new customers.