Lonza Enters into Biopharmaceutical Manufacturing Agreement with Genentech

Lonza to acquire mid-scale biomanufacturing facility and to build a second large-scale biomanufacturing facility in Singapore

13-Nov-2006

Lonza Group announced an agreement with Genentech, Inc. whereby Lonza will acquire Genentech's mid-scale mammalian biopharmaceutical production plant based in Porriño, Spain for $150 million. This facility is FDA-licensed and one of three Genentech plants that are currently licensed to produce Avastin® (bevacizumab) bulk drug substance for commercial use. Lonza will retain the facility's approximately 310 employees.

As part of this transaction, Genentech has entered into a short-term supply contract with Lonza for the production of Avastin® drug substance. For this production, a portion of the total 4 x 10,000 liter capacity of the Porriño facility will be used during this period. It will also provide Lonza with immediate access to further mid-scale biomanufacturing capacity two years earlier than planned, which can be used to meet the needs of its other customers.

In parallel, Lonza will progress with the building of a multi purpose shell and the reactivation and expansion of a previously mothballed reactor in Portsmouth, New Hampshire, USA. This reactor, which is expected to come on stream in 2008, will have a 5,000 liter capacity.

Also within this agreement, Lonza plans to build an 80,000 liter large-scale mammalian biopharmaceutical production facility in Singapore, which is expected to be licensed by the FDA in 2010. Genentech has an exclusive option to acquire this facility from Lonza between 2007 and 2012, for a purchase price of $290 million plus an additional $70 million on the achievement of certain performance milestones. This facility will be built in parallel with Lonza's own planned 80,000 liter plant in Singapore, which is expected to come on stream in 2011.

https://www.bionity.com/en/news/59394/lonza-enters-into-biopharmaceutical-manufacturing-agreement-with-genentech.html