Merck Agrees to Sell CDMO Business to Lonza
The deal transfers Merck's contract development and manufacturing unit to Lonza for a mid-triple-digit million-euro sum, with closing expected in mid-2027.
Updated on Nov. 3, 2026 in Healthcare
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Merck has signed a definitive agreement to divest its contract development and manufacturing organization (CDMO) business to Lonza, a Swiss CDMO with about 17,000 employees. The CDMO business will continue to operate within Merck's Life Science sector until the transaction closes.
Why it matters
The sale advances Merck's strategy of focusing its portfolio on innovation-driven businesses with strong value-creation potential. For Lonza, it adds manufacturing capacity and sites across the United States.
Merck is selling its CDMO unit for a mid-triple-digit million-euro sum against 2025 group sales of €21.1 billion, and the deal excludes BioReliance Contract Testing Services. The exact price and final regulatory outcome have not been disclosed.
The players
Merck
Merck is a science and technology company headquartered in Darmstadt, Germany, with more than 62,000 employees and sales of €21.1 billion in 2025.
Lonza
Lonza is a contract development and manufacturing organization with approximately 17,000 employees that serves pharmaceutical and biotechnology customers.
The details
The CDMO business, which includes sites in Carlsbad, California; Madison and Verona, Wisconsin; St. Louis, Missouri; and Indianapolis, Indiana, will be acquired by Lonza. BioReliance Contract Testing Services is not part of the transaction and remains with Merck.
Timeline
May (prior year): Merck announced a strategy update focusing on innovation-driven businesses.
November 3, 2026: Merck signed the definitive agreement to divest the CDMO business.
Mid-2027: The transaction is expected to close, subject to regulatory approvals.
Market Landscape
Merck's exit from contract manufacturing reflects a broader pattern in which diversified life-science groups concentrate on higher-margin innovation while specialist CDMOs such as Lonza consolidate capacity. The transaction positions Lonza to expand its U.S. footprint against larger rivals in the outsourced drug manufacturing market.
For patients and healthcare customers, the sale is unlikely to change products immediately, since the CDMO business continues operating within Merck until closing. Pharmaceutical and biotech customers served by the sites will be working with Lonza instead of Merck once the deal completes.
The takeaway
Diversified life-science companies are steadily narrowing their focus toward innovation-driven businesses, which can reshape who manufactures the medicines they help develop. Customers of the affected sites should watch for continuity commitments during the transition period.
What happens next
The transaction is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions.
Further reading
Explore more on Healthcare to see how outsourced drug manufacturing fits into the sector.
Source note: This article includes information reported by The Manila times.
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