On March 20, 2024 Roche (SIX: RO, ROG; OTCQX: RHHBY) reported that it has entered into a definitive agreement with Lonza, under which Lonza will acquire the Genentech manufacturing facility in Vacaville, California, USA, for USD 1.2 billion in conjunction with a manufacturing agreement and related quality services and warehousing (Press release, Hoffmann-La Roche, MAR 20, 2024, View Source [SID1234641293]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Under the terms of the agreement, the approximately 750 Genentech employees at the Vacaville facility will be offered employment by Lonza and the products currently produced at the site by Roche will continue to be supplied by Lonza for a transition period.

"We decided to divest our Vacaville site as part of our long-term network strategy and optimisation plan, to deliver a more diversified portfolio including new drug modalities," Susanne Hundsbaek-Pedersen, Global Head of Pharma Technical Operations, stated. "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. We are particularly pleased that the employees at the site will be offered employment by Lonza."

Subject to the completion of applicable regulatory approvals and subsequent transition preparations, the transaction is expected to close by H2 2024.