Lonza and the PolyPeptide Group jointly announced today that PolyPeptide Laboratories Holding (PPL) has entered into a definitive agreement with Lonza Sales AG and Lonza AG (both 100% affiliates of Lonza Group AG) to acquire the peptides business and operations of Lonza in Braine-l’Alleud, Belgium. Lonza’s Braine facility, with approximately 280 employees, is the center for peptide chemical development and manufacturing within Lonza. The agreement is expected to close in the next 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, complementary portfolio of late-stage products offers opportunities for synergies and continued growth for the company.
“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,” said Jane Salik, CEO of the PolyPeptide Group. “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.”
Marc Funk, Chief Operating Officer of Lonza’s Pharma&Biotech segment, said: “This agreement is the result of our strategy of continuously reviewing our business portfolio and streamlining and optimizing 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 harmonization 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 write-off 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.
Peptides, like proteins, are naturally occurring chains of amino acids involved in virtually every life process. They help regulate body functions such as the release of hormones and the regulation of blood-sugar levels. Advances in formulation and delivery platforms have boosted the demand for peptides, particularly in the development of pharmaceuticals. Synthetic peptides serve as the active pharmaceutical ingredient (API) in peptide-based drugs that treat diabetes, obesity, various types of cancer, endocrine and nervous system disorders, and other health conditions.