Swiss company acquires Genentech facility in Vacaville
A Swiss firm has acquired the expansive Genentech manufacturing facility in Vacaville, which was listed last summer.
Lonza has agreed to buy the property from Roche Holding AG, the parent company of the biotechnology firm, for approximately $1.2 billion in cash. Additionally, Lonza plans to invest $1.38 million in upgrades.
The Bay Area facility is considered one of the world’s largest sites for biologics manufacturing.
Roche announced in May that it would sell its drug manufacturing plant in Solano County, one of its oldest locations, as part of its “broader strategy to evolve its manufacturing capabilities in line with future pipeline requirements,” according to a company statement provided to the Chronicle.
Acquired by Roche in 1994, the 427,000-squarefoot facility at 1000 New Horizons Way will now be under Lonza’s ownership. The company plans to retain the current Genentech employees.
The acquisition will significantly bolster Lonza’s capacity for largescale biologics manufacturing. The company said in a news release that it aims to meet the growing demand for “commercial mammalian contract manufacturing, and molecules currently on the path to commercialization” within the Lonza network.
“It is an exciting time for biotechnology and biomanufacturing in Vacaville,” Mayor John Carli said in a statement. “The acquisition of the Genentech manufacturing facility by Lonza marks a new chapter in our city’s history. We’re thrilled to welcome Lonza and its commitment to maintaining employment for the 750 dedicated employees at the facility.”
Ahead of listing its Vacaville plant, Genentech closed its South San Francisco plant, resulting in the layoff of 265 workers there. This action was part of a long-term plan to cease production at the facility. In 2020, the company also cut 474 Bay Area jobs, including those at its South San Francisco location. Roche expressed satisfaction with the agreement that allows current employees to remain on board.
Susanne Hundsbaek-Pedersen, Roche’s global head of pharma technical operations, stated that the decision to divest the Vacaville site aligns with Roche’s long-term strategy to optimize the network and deliver a diversified portfolio of drugs.
“Having gone through a competitive diligence process with multiple potential strategic partners for the facility, we believe that Lonza is the ideal owner for the Vacaville site to continue producing innovative medicines for patients in need,” she said.