Lonza to Acquire Five US Manufacturing Sites from Merck in Major Expansion

Swiss contract drug manufacturer Lonza announced on Tuesday that it would acquire five US manufacturing sites from Germany’s Merck KGaA, significantly expanding its presence in the country and strengthening its capabilities in producing advanced cancer and gene therapies. The acquisition will increase Lonza’s US manufacturing locations from four to nine, while allowing Merck to sharpen its focus on drug development. The deal is valued at approximately 350 million Swiss francs, around the midpoint of the estimated 100 million to 600 million Swiss franc range.

The facilities, located in Missouri, Wisconsin, Indiana and California, are expected to generate approximately 250 million Swiss francs in annual sales by 2028. Lonza Chief Executive Wolfgang Wienand said the acquisition would accelerate the company’s US expansion strategy by adding well-invested facilities and experienced teams. The two Wisconsin sites account for a significant portion of the acquired capacity and specialise in manufacturing components used in targeted cancer therapies, including facilities equipped to handle highly potent compounds. The transaction will also add around 1,100 employees to Lonza.

The acquisition comes amid growing efforts by pharmaceutical companies to expand domestic drug manufacturing in the United States, driven partly by President Donald Trump’s push for increased local production. Lonza expects the transaction to close by mid-2027, with the acquired facilities reaching peak sales and profitability by the mid-2030s. Analysts at Barclays described the deal as strategically positive for Lonza, citing opportunities to improve facility utilisation and margins, while JPMorgan viewed the sale as a minor positive for Merck as it refocuses on its life sciences business.

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