The Merck KGaA CDMO divestment is now official. On 3 November 2026, Merck KGaA, Darmstadt, Germany, announced a definitive agreement to sell its contract development and manufacturing organization (CDMO) business to Lonza. The business sits within the company’s Life Science sector.
Lonza will acquire the business for a mid-triple-digit million-euro amount, according to the company’s release. A precise purchase price was not disclosed. The deal is expected to close in mid-2027, subject to customary regulatory approvals and other closing conditions. The unit keeps operating inside Life Science until then.
Merck KGaA describes the Merck KGaA CDMO divestment as another step in its mid- to long-term strategic agenda, which centers on innovation-driven businesses with strong value-creation potential. The company says the sale also gives the CDMO unit a platform for its next phase under an organization dedicated to contract development and manufacturing.
Merck KGaA CDMO Divestment: Strategic Rationale and Executive Commentary
Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck KGaA, said the transaction advances the strategy update the company presented in May. He tied it to the plan to focus the portfolio on businesses that build on core capabilities and strengthen long-term competitive position, both within Life Science and across the group. He also thanked CDMO colleagues for their contributions over many years.
Jean-Charles Wirth, Member of the Executive Board and CEO Life Science, said a more concentrated portfolio will let the sector direct its investments toward technologies and capabilities that build on its scientific leadership. He pointed to the foundation that CDMO colleagues have built over more than 35 years. In his view, the sector will emerge as a stronger partner for pharmaceutical, biotechnology and CDMO customers.
For industry readers, the Merck KGaA CDMO divestment shows a large science and technology group narrowing its Life Science focus toward consumables, technologies and services. That reading is this publication’s editorial analysis, not a statement from the company. The release itself says the Life Science portfolio will keep serving customers from discovery through manufacturing.
What the Merck KGaA CDMO Divestment Includes: Sites and Scope
The CDMO business provides development and manufacturing services for complex modalities. It supports customers in advancing therapies from development through manufacturing. That scope explains why the unit has relevance for biopharma sponsors that outsource production of advanced medicines.
The proposed transaction covers the CDMO business and operations associated with sites in Carlsbad, California, and in Madison and Verona, Wisconsin. It also includes CDMO bioconjugation operations in St. Louis, Missouri, and operations in Indianapolis, Indiana. All five locations named in the release are in the United States.
One service line is explicitly carved out. BioReliance Contract Testing Services is not part of the transaction and will remain an important part of the Life Science portfolio. Within the Merck KGaA CDMO divestment, this exclusion keeps the company’s testing offering in-house while the manufacturing operations transfer to Lonza.
Lonza’s Role in the Merck KGaA CDMO Divestment
Lonza describes itself as a contract development and manufacturing organization dedicated to the healthcare industry. It works across three continents, with a global team of approximately 17,000 colleagues who partner with pharma and biotech companies. The buyer is therefore a specialist in the same field as the unit it is acquiring.
Wolfgang Wienand, Chief Executive Officer of Lonza, said integrating the business will give customers access to broader capabilities and additional manufacturing capacity in the US, which he called a key market for Lonza. He added that Lonza is excited to welcome highly experienced new colleagues to “One Lonza.”
Wienand also said customers want partners who combine deep scientific expertise with the scale to support increasingly complex medicines from innovation to commercial supply. For Lonza, the Merck KGaA CDMO divestment therefore adds US manufacturing footprint and bioconjugation capabilities, based on the sites listed in the release. Financial details such as revenue, earnings and headcount for the CDMO unit were not disclosed.
Timeline and Customer Continuity After the Merck KGaA CDMO Divestment
Until the transaction closes, the CDMO business continues to operate as part of the Life Science sector. Merck KGaA and Lonza say they will work closely to support employees, customers and operations during the transition. The stated priority is continuity of programs and supply.
After completion, Merck KGaA will continue to support pharmaceutical, biotechnology and CDMO customers, Lonza included, through its portfolio of consumables, technologies and services. These products are used across biopharmaceutical development and manufacturing. The company’s relationship with Lonza is therefore expected to continue as customer and supplier after the Merck KGaA CDMO divestment closes.
Merck KGaA, a leading science and technology company, operates across life science, healthcare and electronics and has more than 62,000 employees. It generated sales of € 21.1 billion in 65 countries in 2025. Founded in 1668, it remains majority-owned by the founding family. In the United States and Canada its business sectors operate as MilliporeSigma, EMD Serono and EMD Electronics.
Transaction Snapshot
| Attribute | Detail |
|---|---|
| Announcement Date | 3 November 2026 |
| Announcement Location | Darmstadt, Germany |
| Seller | Merck KGaA, Darmstadt, Germany |
| Buyer | Lonza |
| Asset | Contract development and manufacturing organization (CDMO) business, Life Science sector |
| Agreement Type | Definitive agreement |
| Purchase Price | Mid-triple-digit million-euro amount (exact figure not disclosed) |
| Expected Closing | Mid-2027 |
| Conditions | Customary regulatory approvals and other closing conditions |
| Excluded from Deal | BioReliance Contract Testing Services |
