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Lonza to Divest Peptides Business and Operations to PolyPeptide Basel

Lonza and the PolyPeptide Group have jointly announced that PolyPeptide Laboratories Holding (PPL) has entered into a definitive agreement with Lonza Sales and Lonza to acquire its peptides business and operations in Braine-l’Alleud, Belgium.

Lonza’s Braine facility has approximately 280 employees and is the centre for peptide chemical development and manufacturing within the company. The agreement is expected to close in the next few weeks, subject to customary closing conditions.

The acquisition will enhance PolyPeptide’s manufacturing capacity and capabilities and will enable seamless support for its broad portfolio, as many products progress toward regulatory approval and commercial supply. Lonza Braine will provide immediate access to additional large-scale capacity in synthesis, purification, and isolation of peptides, while PolyPeptide’s existing and complementary portfolio of late-stage products offers opportunities for synergies and continued growth for the company.

CEO of the PolyPeptide Group Jane Salik said: "The addition of Lonza’s Braine facility to PolyPeptide is a great fit and will offer customers an even more comprehensive range of services for every stage of development.
"With this acquisition, we will be expanding our capacity to meet the needs of customers who demand the highest quality products with the most robust, scalable, and cost-efficient peptide manufacturing processes at every scale."

Chief operating officer of Lonza’s Pharma & Biotech segment Marc Funk said: "This agreement is the result of our strategy of continuously reviewing our business portfolio and streamlining and optimising our site and production platforms.

"The peptides chemical business is a niche business for Lonza, with only limited synergies with other small molecule technologies. PolyPeptide is focused and dedicated to the production, operations, and sales of peptides, so we believe that we have found the optimal partner for the business to give new perspectives to the Braine site and its employees.

"This move will also allow us to fully focus on our many other technologies, which we will continue to develop further."

Both PolyPeptide and Lonza have long and distinguished histories in peptide manufacturing. Lonza acquired the Braine peptide business in 2006 from UCB, while PolyPeptide’s corporate roots in peptide therapeutics date back to the 1950s. Both companies became successful in peptide manufacturing by building excellent reputations for quality, service, and GMP support.

The acquisition announced today will not affect ongoing activities at the Belgian facility before or after close, and the integration process is expected to be seamless to customers. PolyPeptide Group announced that the harmonisation of procedures to ensure consistency, continuity, and quality within its expanded Group will be implemented in the coming months. With this acquisition the PolyPeptide Group will employ close to 800 people worldwide with GMP facilities in the United States (Torrance and San Diego, California), France (Strasbourg), India (Ambernath), Belgium (Braine-D’Alleud) and Sweden (Malmo).

The financial terms of the transaction are not disclosed. Lonza will book a non-cash related writeoff of CHF 44 million in the second half of 2016 and then book a non-cash currency translation impact at the closing of the transaction.

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