Merck, a science and technology company, signed a definitive agreement to sell its contract development and manufacturing organisation (CDMO) business within its Life Science business sector to Lonza. The transaction supports Merck’s mid- to long-term strategy to focus its portfolio on innovation-driven businesses with strong growth and value-creation potential.
Through the divestment, Merck aims to prioritise areas where its scientific and technological capabilities can deliver greater value and address evolving customer requirements. Meanwhile, the CDMO business will gain opportunities to pursue its next phase of growth under Lonza, an organisation specialising in contract development and manufacturing services.
Transaction Value and Expected Completion
Lonza will acquire Merck’s CDMO 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. Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck, described the agreement as an important step in advancing the company’s long-term strategic agenda. He noted that Merck will continue strengthening its innovation-driven businesses, building on its core capabilities and improving its competitive position across Life Science and the wider organisation. Beckmann also acknowledged the contributions of CDMO employees, recognising their expertise and commitment in building the business over several decades.
Merck Sharpens Its Life Science Business Strategy
The divestment will enable Merck to concentrate investments on technologies and capabilities that reinforce its scientific leadership and strengthen its relationships with pharmaceutical, biotechnology and CDMO customers. Jean-Charles Wirth, Member of the Executive Board of Merck and CEO of Life Science, said a more focused portfolio would help the company invest in areas that offer greater strategic value. He emphasised that Merck will continue supporting customers from drug discovery through manufacturing with its broad portfolio of consumables, technologies and services. Wirth also highlighted the strong foundation established by the CDMO team over more than 35 years and thanked employees for their contributions to the business.
CDMO Operations and Facilities Included in the Deal
Merck’s CDMO business provides development and manufacturing services for complex therapeutic modalities, helping customers advance treatments from early development through commercial manufacturing.
The proposed transaction covers CDMO operations at the following locations in the United States:
Carlsbad, California
Madison and Verona, Wisconsin
St. Louis, Missouri, including CDMO bioconjugation operations
Indianapolis, Indiana
These facilities and their associated operations will become part of Lonza following completion of the transaction.
However, BioReliance® Contract Testing Services is excluded from the deal and will remain an integral part of Merck’s Life Science portfolio.
Lonza to Expand US Manufacturing Capabilities
The acquisition will strengthen Lonza’s manufacturing footprint and expand its capabilities in the United States, an important market for the company. Wolfgang Wienand, Chief Executive Officer of Lonza, said customers increasingly need partners with deep scientific expertise and the scale to support complex medicines, from innovation through commercial supply. He added that integrating Merck’s CDMO business will provide customers with broader capabilities and additional US manufacturing capacity. Lonza also looks forward to welcoming experienced employees from Merck and combining their expertise with its global operations. Lonza is a global contract development and manufacturing organisation serving the healthcare industry. With approximately 17,000 employees across three continents, the company partners with pharmaceutical and biotechnology businesses to transform scientific innovations into viable therapies.
Business Continuity During the Transition
Until the transaction receives the necessary approvals and closes, Merck’s CDMO business will continue operating within its Life Science business sector. Both companies will work closely to support employees, customers and ongoing operations throughout the transition. They will also prioritise programme continuity and uninterrupted product supply to maintain customer confidence and operational stability. As per the press release, the proposed divestment represents a strategic portfolio realignment for Merck while providing Lonza with an opportunity to expand its CDMO capabilities and strengthen its position in the global biopharmaceutical manufacturing market.
