Merck is exiting its contract development and manufacturing organization (CDMO) business, agreeing to sell the operations to Swiss healthcare manufacturing giant Lonza in a mid-triple-digit million-euro deal as it sharpens its focus on innovation-driven businesses.

 

The definitive agreement marks another significant step in Merck’s mid- to long-term strategy to streamline its portfolio and concentrate investments on businesses offering stronger innovation and value-creation potential.

 

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,” said Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck. 

 

“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. 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.”

 

The move will give Merck a more concentrated Life Science portfolio, allowing it to channel investments into technologies and capabilities aligned with its scientific strengths while continuing to serve pharmaceutical, biotechnology and CDMO customers through its wider product and services portfolio.

 

“This transaction represents an important step in the continued delivery of our strategy,” said Jean-Charles Wirth, Member of the Executive Board of Merck and CEO Life Science. 

 

“A more concentrated Life Science portfolio will allow us to focus our investments on technologies and capabilities that build on our scientific leadership and make us an even stronger partner for our pharmaceutical, biotechnology and CDMO customers. 

 

"We continue to support their work from discovery through manufacturing with a broad portfolio of consumables, technologies and other services. We are proud of the strong foundation our CDMO colleagues have built over more than 35 years and grateful for their contributions to Merck.”

 

The business being acquired provides development and manufacturing services for complex modalities, helping customers advance therapies from early development to commercial manufacturing.

 

The deal covers operations at sites in Carlsbad, California; Madison and Verona, Wisconsin; CDMO bioconjugation operations in St. Louis, Missouri; and Indianapolis, Indiana.

 

For Lonza, the acquisition will expand its US manufacturing footprint and strengthen its ability to support pharmaceutical and biotechnology companies developing increasingly complex therapies.

 

“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, Lonza. 

 

“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.”