Merck has signed a definitive agreement to sell its CDMO business to Lonza for a mid-triple-digit million-euro sum, with the transaction expected to complete in mid-2027.
Merck has agreed to divest its contract development and manufacturing organisation (CDMO) business within its Life Science sector to Lonza, as part of a strategy to focus its portfolio on innovation-driven businesses.
The acquisition will bring Merck’s CDMO development and manufacturing capabilities for complex modalities into Lonza, providing additional manufacturing capacity in the US. The business supports customers in advancing therapies from development through to manufacturing.
The proposed transaction includes operations at sites in Carlsbad, California; Madison and Verona, Wisconsin; Indianapolis, Indiana; and CDMO bioconjugation operations in St. Louis, Missouri.
Jean-Charles Wirth, Member of the Executive Board of Merck and CEO of Life Science, said the divestment would enable the company to sharpen its strategic focus and direct investment towards areas where it can build on its scientific expertise:
”A more concentrated Life Science portfolio will allow us to focus our investments on technologies and capabilities that build on our scientific leadership and make us an even stronger partner for our pharmaceutical, biotechnology and CDMO customers.”
Merck will continue to provide consumables, technologies and services used across biopharmaceutical development and manufacturing to its pharmaceutical, biotechnology and CDMO customers, including Lonza. Its BioReliance Contract Testing Services business is also excluded from the sale and will remain within the Life Science portfolio.
Lonza CEO Wolfgang Wienand said the acquisition will give customers “access to broader capabilities and additional manufacturing capacity in the US, a key market for Lonza. Most importantly, we are excited to welcome highly experienced new colleagues to One Lonza and, together with them, build an even stronger offering for our customers around the world.”
The transaction is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions. Until completion, the CDMO business will continue to operate within Merck’s Life Science sector, with both companies committed to maintaining programme and supply continuity throughout the transition.
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