Lonza Announces Expansion Plans for Next-Generation Mammalian Manufacturing Facilities in Visp (CH) and Portsmouth (US)

Lonza Group AG / Key word(s): Expansion

06-May-2021 / 07:01 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

• Lonza will invest approximately CHF 850 million to build two new state-of-the-art mammalian facilities and respond to customer demand regarding capacity, life cycle management and speed to market
• A new large-scale facility with the latest manufacturing technology in Visp (CH), will expand capacity by six 20,000L bioreactors to meet increasing market demand for biologics
• Small-scale, single-use technology facility planned for Portsmouth (US) to support customers scaling clinical to commercial manufacturing with capacity for up to eight 2,000L bioreactors
• The investment is supported by a strong pipeline and underlines Lonza's continuing commitment to serving customers across modalities and scales

Quote from Pierre-Alain Ruffieux, CEO, Lonza:
'As we look at the biologics market, we see a combination of growth at pace coupled with continuing high customer demand. In recent months, the COVID-19 pandemic has placed the spotlight on supply chains and the critical role CDMOs play in ensuring an adequate supply of medicines. The expansion of both our large-scale and small-scale manufacturing capacity will ensure Lonza continues to deliver industry-leading contract manufacturing services that will support our customers' needs in the medium and long term.'

Quote from Jean-Christophe Hyvert, President, Biologics and Cell & Gene, Lonza:
'At Lonza, we are focused on supporting our customers to achieve efficient, high-throughput production processes and flexible manufacturing solutions. Our customers' needs range from the manufacture of small- to mid-volume products, such as innovative pharmaceuticals for rare diseases affecting smaller patient populations, to the large-scale commercial production of biologics. These expansions serve to strengthen our position as a critical partner in the development and manufacture of such medicines.'

Basel, Switzerland, 6 May 2021 - Lonza today announced significant investments to expand its mammalian drug substance manufacturing facilities in Visp (CH) and Portsmouth (US).

The expansion in Visp (CH) will see the development of a new large-scale mammalian drug substance manufacturing facility to expand capacity with six 20,000L bioreactors to meet increasing market demand in biologics. The new facility will have an area of approximately 27,500 m².

The investment will increase large-scale biologics manufacturing capacity to meet customer demand in the contract manufacturing space. The state-of-the-art, high throughput facility includes perfusion capabilities and is designed to support high titer processes and accommodate the next generation of mammalian biologics.

Designed to optimize energy efficiency and water use, the facility is expected to be completed in 2024 and will require an investment of approximately CHF 650 million. The expansion will complement the existing large-scale global network at Lonza sites in Tuas (SG), Portsmouth (US) and Porriño (ES).

In Portsmouth (US), a new next-generation facility supporting late-phase clinical and commercial development and manufacturing will add capacity for up to eight 2,000L single-use bioreactors over an area of 3,000 m².

This CHF 200 million expansion will help meet the increasing market demand for small- to mid-scale mammalian-derived biologics and support the implementation of high titer and high throughput platform processes.

The facility is designed to support Phase 3 clinical and commercial small- to mid-volume products. It will include state-of-the-art technologies in perfusion, purification, and automation.

Combined with Lonza's industry-leading services in process characterization and process validation, the facility will offer customers an optimized path through BLA to market as well as the flexibility to meet challenges in product forecasting during the initial years of product launch.

The facility is expected to be completed in 2023 and will complement the existing single-use network at Lonza sites in Hayward (US), Slough (UK), Tuas (SG) and Visp (CH).

Following previous investments in mammalian mid-scale capacity, development services and drug product services, the new investment reflects Lonza's commitment to enabling customers to bring drugs to market faster, meet customers' specific needs and offer end-to-end solutions across multiple modalities and scales. 

Recruitment has already commenced for both of the new facilities. More than 300 new jobs will be created in Visp (CH), while 250 new positions will be recruited in Portsmouth (US), reinforcing Lonza's commitment to the communities in which it operates.

About Lonza
Lonza is the preferred global partner to the pharmaceutical, biotech and nutrition markets. We work to prevent illness and enable a healthier world by supporting our customers to deliver new and innovative medicines that help treat a wide range of diseases. We achieve this by combining technological insight with world-class manufacturing, scientific expertise and process excellence. These enable our customers to commercialize their discoveries and innovations in the healthcare sector.

Founded in 1897 in the Swiss Alps, today Lonza operates across five continents. With approximately 14,000 full-time employees, we are built from high-performing teams and of individual talent who make a meaningful difference to our own business, as well as to the communities in which we operate. The company generated sales of CHF 4.5 billion in 2020 with a CORE EBITDA of CHF 1.4 billion. Find out more at www.lonza.com

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Lonza Contact Details

Victoria Morgan
Head of External Communications
Lonza Group Ltd
Tel +41 61 316 2283
victoria.morgan@lonza.com

Dirk Oehlers
Investor Relations
Lonza Group Ltd
Tel +41 61 316 8540
dirk.oehlers@lonza.com