Merck, a leading science and technology company, has signed a definitive agreement to divest its contract development and manufacturing organization (CDMO) business within its life science business sector to Lonza.
The transaction advances Merck’s mid-term to long-term strategic agenda by focusing its portfolio on innovation-driven businesses with strong value-creation potential.
This means prioritising areas where Merck’s science and technology capabilities offer the greatest opportunity to lead and meet evolving customer needs.
It also positions the CDMO business for its next phase of development under an organization with a dedicated focus on contract development and manufacturing.
Lonza will acquire the business for a mid-triple-digit million-euro amount. The transaction is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions.
The CDMO business provides development and manufacturing services for complex modalities, supporting customers in advancing therapies from development through manufacturing. The proposed transaction includes the CDMO business and operations associated with sites in Carlsbad, California; Madison and Verona, Wisconsin, USA; CDMO bioconjugation operations in St. Louis, Missouri; and Indianapolis, Indiana, USA.
Following completion of the transaction, Merck will continue to support pharmaceutical, biotechnology and CDMO customers, including Lonza, through its broad portfolio of consumables, technologies and services used across biopharmaceutical development and manufacturing. BioReliance Contract Testing Services is not included in the transaction and will remain an important part of the Life Science portfolio.
Lonza is a contract development and manufacturing organisation dedicated to serving the healthcare industry. Working across three continents, Lonza’s global team of approximately 17,000 colleagues works alongside pharma and biotech companies to turn their breakthrough innovations into viable therapies.
Until the transaction closes, the CDMO business will continue to operate as part of the Life Science business sector of Merck. Merck and Lonza will work closely to support employees, customers and operations throughout the transition, with a continued focus on program and supply continuity.
