Dive Brief:
- Contract drug maker Lonza is preparing to close a clinical manufacturing facility in Hayward, California, a company spokesperson confirmed to Manufacturing Dive this week.
- The Switzerland-based company will lay off 218 employees, according to a state Jan. 11 Worker Adjustment and Retraining Notification Act post.
- The phased closure is expected to begin on Feb. 2 and will be completed in Q1 2025.
Dive Insight:
Lonza is closing the facility despite the fact that the company affirmed its commitment to the segment as a "growth driver" in its 2024-2028 guidance published in October.
The Hayward site was used for mammalian cell manufacturing, in which cells are isolated from animal tissues. The process is typically used as a research tool for producing virus vaccines and various therapeutic proteins, and generating functional cells or tissue analogues for regenerative medicine, according to the American Institute of Chemical Engineers.
“This decision has been reached as CDMO market demand is focused on combined and integrated clinical-commercial offerings, and the Hayward site provides limited growth opportunities beyond its clinical scope,” a Lonza spokesperson said in an email regarding the closure.
The layoffs in the U.S. also follow several hiring sprees throughout October in Switzerland as the company developed new biopharmaceutical partnerships and expanded its production capacity.
The 120,000-square-foot Hayward site employs over 300 people and focuses on clinical production of biotherapeutics, bioreagents and biomaterials, according to the company website.
Lonza bought the clinical manufacturing site from former pharmaceutical company Shire in 2017. The purchase was in response to heightened customer demand for Lonza's pharma and biotech business segment for clinical-stage manufacturing capacity.
