Lonza Group stock in focus after five-site Merck CDMO deal

Lonza has signed a definitive agreement to acquire five contract development and manufacturing organization sites from Merck KGaA in the United States. The transaction announced on Tuesday, November 3, 2026, expands Lonza's US CDMO network from four to nine sites and adds about 1,100 employees.

Lonza Group stock traded at 729.90 euros on Lang & Schwarz at 12:40 CET on Thursday, November 5, 2026. The company was the subject of two recent reports on the acquisition, published on November 3 and November 4.

Five sites broaden US capabilities

The facilities are located in St. Louis, Missouri; Madison and Verona, Wisconsin; Carlsbad, California; and Indianapolis, Indiana. Their capabilities range from bioconjugates and high-potency payload-linkers to viral vectors, lipid nanoparticles, liposomes and PEGylated proteins.

Lonza said the acquisition will strengthen its end-to-end offering for customers from clinical development through commercial manufacturing. The network is positioned in growth areas including antibody-drug conjugates, other bioconjugates, cell and gene therapy and advanced drug delivery.

The deal also adds capacity in the US, which Lonza described as the largest market for innovative pharmaceuticals. Together with ongoing CDMO readiness work in Vacaville, California, and a planned commercial spray-drying facility in Bend, Oregon, the transaction forms part of the company's effort to build a broader US manufacturing network.

Cash deal carries integration demands

Lonza will pay cash funded by cash on hand and existing credit facilities. The enterprise valuation is in the low- to mid-triple-digit millions of Swiss francs, while the company's BBB+ rating is expected to be maintained. The businesses will continue to operate independently until closing, subject to customary conditions.

For full-year 2028, Lonza expects the acquired sites to contribute about 250 million Swiss francs in sales. The acquired operations are expected to have a CORE EBITDA margin below Lonza's group level at that stage, with limited effect on the group initially. Lonza expects the sites to reach the group's future margin level by the mid-2030s as integration and capacity expansion progress.

Chief Executive Wolfgang Wienand called the transaction a fit with the One Lonza strategy and said it would increase the resilience of the global manufacturing network. Merck Executive Board Chairman and Group CEO Kai Beckmann said the divestment supports a more concentrated Life Science portfolio. The transaction excludes Merck's BioReliance Contract Testing Services business.

The company confirmed its 2026 financial outlook and its Organic Growth Model, including related medium-term financial ambitions. The transaction will not affect Lonza's previously announced share buyback, which is planned after the divestment of its Capsules & Health Ingredients business.

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