Merck has signed a definitive agreement to divest its Contract Development and Manufacturing Organisation (CDMO) business within its life science business sector to Lonza. The transaction advances Merck’s mid- to long-term strategic agenda by focusing its portfolio on innovation-driven businesses with strong value-creation potential.
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.
“Today’s announcement is another important step in advancing our mid- to long-term strategic agenda. As announced during our strategy update in May, we continue to focus our portfolio on innovation-driven businesses that build on our core capabilities and strengthen our long-term competitive position within life science and across the entire Merck portfolio,” said Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck.
“At the same time, we continue to connect and scale capabilities across Merck to leverage our unique market position as an integrated science and technology company. I would like to sincerely thank all of our CDMO colleagues whose expertise and commitment have contributed to the success of this business over many years,” Beckmann added.
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; CDMO bioconjugation operations in St. Louis, Missouri; and Indianapolis, Indiana.
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.
“Our customers are looking for partners who combine deep scientific expertise with the capabilities and scale to support increasingly complex medicines from innovation through to commercial supply,” said Wolfgang Wienand, Chief Executive Officer of Lonza.
He added, “Integrating Merck’s CDMO business into Lonza will give our 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.”
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 programme and supply continuity.
