Merck Sells CDMO Business to Lonza for Millions
Pharmaceutical and biotech operators using these contract manufacturing sites should plan for an ownership change expected by mid-2027.
Updated on Nov. 3, 2026 in Healthcare
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Merck has signed a definitive agreement to sell its contract development and manufacturing organization (CDMO) business to Lonza for a mid-triple-digit million-euro sum. The CDMO business, which operates sites in California, Wisconsin, Missouri and Indiana, will continue within Merck's Life Science sector until the deal closes in mid-2027.
Why it matters
Merck says the sale advances its strategy of concentrating its portfolio on innovation-driven businesses with strong value-creation potential. For operators in pharmaceutical and biotech supply chains, the transfer shifts who manufactures and supports these capabilities, even though Merck will keep supplying consumables, technologies and services to CDMO customers.
Merck, with more than 62,000 employees and €21.1 billion in 2025 sales across 65 countries, is selling its CDMO business for a mid-triple-digit million-euro price to Lonza, which has about 17,000 employees. BioReliance Contract Testing Services is not part of the deal.
The players
Merck
Merck is a Darmstadt, Germany-based science and technology company with more than 62,000 employees and 2025 sales of €21.1 billion across 65 countries.
Lonza
Lonza is a contract development and manufacturing organization with approximately 17,000 employees that is acquiring Merck's CDMO business.
The details
The CDMO business covers operations at sites in Carlsbad, California; Madison and Verona, Wisconsin; St. Louis, Missouri; and Indianapolis, Indiana, and it remains part of Merck's Life Science business sector while the agreement is pending. Merck says it will keep supporting pharmaceutical, biotechnology and CDMO customers, Lonza included, through its consumables, technologies and services portfolio after the sale. Lonza, a contract development and manufacturing organization, will take over the facilities and the operations that come with them.
Timeline
May (prior year): Merck's strategy update set out its focus on innovation-driven businesses.
November 3, 2026: Merck announced the definitive agreement to divest the CDMO business.
Mid-2027: The Lonza transaction is expected to close, subject to regulatory approvals.
Market Landscape
The divestiture follows through on the portfolio focus Merck described in its May strategy update, which prioritized innovation-driven businesses over lower-growth operations. Moving the CDMO business to Lonza places a large manufacturing footprint under a dedicated contract manufacturer rather than a drugmaker-owned unit.
Operators who buy from or sell to CDMO providers should watch for changes in contracting counterparties and service terms as the transfer nears its mid-2027 closing. Procurement and supply-chain teams should review continuity commitments for the affected sites in California, Wisconsin, Missouri and Indiana.
The takeaway
Track the regulatory approvals and any updates on how the CDMO sites will be integrated under Lonza ahead of the expected mid-2027 close. Operators with contracts tied to these facilities should confirm continuity terms with their counterparties, and consult qualified counsel on any contractual change-of-control provisions.
What happens next
The transaction is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions.
Further reading
For broader context on how drug manufacturing capacity is being reorganized, explore our Healthcare coverage.
Source note: This article includes information reported by The Manila times.
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