Merck sells US contract manufacturing business to Lonza

(AWP Alliance News) - Merck KGaA is selling its US contract development and manufacturing organization business for active pharmaceutical ingredients to Lonza Group Ltd.

Basel, Switzerland-based pharmaceutical contract development and manufacturing company Lonza is acquiring five sites in the US, employing around 1,100 people, for a mid-three-figure million-dollar sum, the two companies announced on Tuesday.

The transaction, which is due to be completed in mid-2027, involves sites in California, Wisconsin, Indiana and Missouri.

Contract development and manufacturing helps customers advance therapies from development through to production. Darmstadt, Germany-based pharmaceutical company Merck stressed that, even after the deal is finalized, it will continue to support pharmaceutical and biotechnology customers with a broad range of consumables, technologies and services.

Under its new Chief Executive Kai Beckmann, Merck now intends to focus more strongly on innovation-driven businesses.

"Today's announcement is another important step towards implementing our medium to long-term strategic agenda," Beckmann said in a statement.

In June, Merck agreed to acquire the US company Bio-Techne, a provider of analytical technologies, for just under EUR10 billion to strengthen its laboratory division.

Merck also recently announced the acquisition of the British biotech firm Silence Therapeutics for around EUR1 billion to expand its business in the field of rare diseases.

Headquartered in Basel, Lonza employs around 17,000 people.

source: dpa