BASEL, Switzerland and BRAINE-L'ALLEUD, Belgium
and MALMO, Sweden, Dec. 7, 2016 /PRNewswire/ -- Lonza and the PolyPeptide Group
jointly announced today that PolyPeptide Laboratories Holding (PPL) AB 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-l'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.
About Peptides
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.
About Lonza
Lonza is one of the world's leading and most-trusted suppliers to the pharmaceutical, biotech and specialty
ingredients markets. We harness science and technology to create products that support safer and healthier living and that
enhance the overall quality of life.
Not only are we a custom manufacturer and developer, Lonza also offers services and products ranging from active
pharmaceutical ingredients and stem-cell therapies to drinking water sanitizers, from the vitamin B3 compounds and personal care
ingredients to agricultural products, and from industrial preservatives to microbial control solutions that combat dangerous
viruses, bacteria and other pathogens.
Founded in 1897 in the Swiss Alps, Lonza today is a well-respected global company with more than 40 major manufacturing and
R&D facilities and approximately 9,800 full-time employees worldwide. The company generated sales of CHF 3.8 billion in 2015 and is organized into two market-focused segments: Pharma&Biotech and Specialty
Ingredients. Further information can be found at www.lonza.com.
About the PolyPeptide Group
The PolyPeptide Group is a privately held leading provider of custom and generic GMP-grade peptides for a range of
pharmaceutical and biotechnology applications. With corporate roots that began in the 1950s, the Group was formally launched in
1996. Today, it operates a growing international network of peptide manufacturing facilities.
With its multinational organization, exclusive focus on peptides and solid financial base, the PolyPeptide Group offers a
unique guarantee of quality, service and security of supply to its customers.
More information about the PolyPeptide Group is available at www.PolyPeptide.com.
Lonza Contact Information
Lonza Group Ltd
|
Lonza Group Ltd
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Lonza Group Ltd
|
Head Investor Relations
|
Head Corporate Communications
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Head External Communications
|
Dirk Oehlers
|
Dominik Werner
|
Constance Ward
|
Tel +41 61 316 8540
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Tel +41 61 316 8798
|
Tel +41 61 316 8840
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Fax +41 61 316 9540
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Fax +41 61 316 9540
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Fax +41 61 316 9840
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dirk.oehlers@lonza.com
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dominik.werner@lonza.com
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constance.ward@lonza.com
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PolyPeptide Contact Information
PolyPeptide Laboratories AB
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PolyPeptide Laboratories AB
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CEO
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Global Director, Sales
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Jane Salik
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Jan Christensen
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Tel +1 310 782 3569
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Tel +45 20 74 70 73
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Fax: +1 310 782 3645
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Fax: +46 40 36 63 86
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jane.salik@polypeptide.com
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jan.christensen@polypeptide.com
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Additional Information and Disclaimer
Lonza Group Ltd has its headquarters in Basel, Switzerland, and is listed on the SIX
Swiss Exchange. It has a secondary listing on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Lonza Group Ltd is
not subject to the SGX-ST's continuing listing requirements but remains subject to Rules 217 and 751 of the SGX-ST Listing
Manual.
Certain matters discussed in this news release may constitute forward-looking statements. These statements are based on
current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and
estimates will be achieved. Investors are cautioned that all forward-looking statements involve risks and uncertainty and are
qualified in their entirety. The actual results may differ materially in the future from the forward-looking statements included
in this news release due to various factors. Furthermore, except as otherwise required by law, Lonza Group Ltd disclaims any
intention or obligation to update the statements contained in this news release.