Merck to Sell CDMO Business to Lonza

Merck's Bravecto received FDA emergency approval for treating screwworm infestations in dogs. The chewable tablets are already available for flea treatment. This expands Bravecto's use in veterinary medicine.

Lonza, a Swiss CDMO company, will acquire five U.S. facilities from Merck for 100-600 million Swiss francs, expanding its U.S. presence to nine locations and adding 1,100 employees. The acquired facilities are expected to generate 250 million Swiss francs in annual revenue by 2028. Samsung Biologics is also expanding, acquiring Polypeptide Group for 1.46 billion Swiss francs.

Merck agreed to sell its CDMO business to Lonza, including five US sites, to focus on innovation. Lonza gains manufacturing capacity. Deal expected to close in mid-2027. Merck will retain other Life Science services. Both companies aim to ensure continuity.

Merck & Co (MSD) has started the Phase III ENHANCE-3 trial for Ohtuvayre (ensifentrine) to prevent COPD exacerbations. The study aims to enroll 2,136 patients across 28 countries, with primary endpoints assessing exacerbation rates over 52 weeks. Ohtuvayre was approved by the FDA in June 2024 for COPD maintenance.

Lonza, a Swiss CDMO, will acquire Merck KGaA's US CDMO business for low- to mid-triple-digit millions of Swiss francs. The deal expands Lonza's US sites from 4 to 9 and adds 1,100 employees. Merck retains its BioReliance Contract Testing Services. Lonza expects CHF 250m in sales from the acquired sites by 2028, with minimal group impact. The transaction is cash-funded and maintains Lonza's BBB+ rating.

Lonza is acquiring five CDMO facilities from Merck KGaA for low to mid-triple-digit millions of Swiss francs, expanding its US presence. The deal adds nine facilities, 1,100 employees, and capabilities in bioconjugates, viral vectors, and advanced drug delivery. Lonza expects CHF 250M in sales by 2028, with integration expected to drive future growth. The transaction is set to close by mid-2027.