Lonza, Genentech in biopharma deal

Contract manufacturer Lonza has agreed to pay $150 million for Genentech's biologics manufacturing facility in Porrino, Spain. The 40,000 L of cell culture capacity at the Porrino site is currently dedicated to the production of Genentech's cancer drug Avastin. Lonza will continue to make Avastin for Genentech there under a short-term supply agreement. Lonza has also agreed to add an 80,000-L mammalian cell culture facility to its site in Singapore, where an 80,000-L plant is already under construction. Genentech has an exclusive option to acquire one of Lonza's Singapore plants anytime between 2007 and 2012 for $290 million plus $70 million in performance milestones. The deal includes a separate supply agreement for Avastin and other Genentech oncology products to be made in Singapore. Lonza already manufactures Rituxan, a Genentech oncology treatment, at its site in Portsmouth, N.H.