Lonza Group stock in focus after Merck US CDMO agreement

Lonza Group stock remained in focus on Wednesday, November 11, after Lonza's agreement to acquire Merck KGaA's US contract development and manufacturing organization continued to shape the investment case. Drug Discovery World reported on November 9 that the transaction covers five sites and is expected to close in mid-2027, subject to customary conditions.

Lonza stock traded at 716.20 euros on Lang & Schwarz at 11:42 CET on Wednesday, November 11. A verified Xetra closing comparison is not included in this market update.

Five sites broaden US capabilities

The agreement expands Lonza's US CDMO manufacturing footprint from four sites to nine. The acquired network covers bioconjugates in St. Louis, Missouri; high-potency payload-linkers in Madison and Verona, Wisconsin; viral-vector solutions with aseptic fill-finish capabilities in Carlsbad, California; and lipid nanoparticle, liposome and PEGylated protein solutions in Indianapolis.

Drug Discovery World said the sites support customers from clinical development through commercial manufacturing. The portfolio adds exposure to antibody-drug conjugates and other bioconjugates, viral vectors for cell and gene therapies and advanced drug-delivery technologies. Lonza CEO Wolfgang Wienand said the assets should strengthen the company's ability to support customers from innovation through commercial supply.

Revenue arrives after closing

Lonza expects the acquired sites to contribute CHF 250 million in sales in full-year 2028. Their core EBITDA margin is expected to be below Lonza's margin initially, making utilization and integration important drivers of the transaction's longer-term returns. The company expects the business to reach peak sales at Lonza's future group margin level by the mid-2030s.

About 1,100 employees are expected to join Lonza, lifting its US workforce to more than 6,000. Until completion, the operations will continue independently. The transaction will not affect Lonza's planned share buyback, according to Drug Discovery World.

Strategic expansion, delayed contribution

For investors, the deal increases Lonza's US scale and adds capabilities in several complex modalities without an immediate material contribution to group results. The initial margin profile also means that the strategic benefit depends on filling available capacity and integrating the sites effectively after completion.

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Further developments on the transaction and the Lonza Group stock will depend on regulatory progress and the planned mid-2027 closing. The full transaction details are available from Drug Discovery World.