Until now, the Swiss company has been more focused on large-scale solidphase peptide synthesis and recombinant fermentation technology. The choiceof technology is generally depends on the number of amino acids, structuralcomplexity, manufacturing quantity and economical viability.
Having started producing peptides in 1997 and expanding intooligonucleotides in 2002, it claims to be the only contract manufacturerwith a historically successful track record of providing activepharmaceutical ingredients (API) from any of the three technologies.
An increase in demand for peptide APIs worldwide led to the announced CHF 24 million (€15.5 million) expanding its manufacturing capabilities at its site in Visp, Switzerland in April 2005.
This involved the construction of a new mid-scale plant for oligonucleotides to provide material for clinical trials, additional HPLC-purification and new lyophilisation equipment.
Lonza plans to continue manufacturing at UCB-Bioproducts' site in Brainel'Alleud, Belgium, where 300 staff are employed.
Stefan Borgas, chief executive officer of Lonza said: "With thisacquisition Lonza further strengthens its position as a worldwide leader incustom peptide manufacturing by continuing to develop the site as a globalcentre of excellence for the development and manufacture of peptides."
With sales of CHF 2.18 billion (€1.4 billion) in 2004, Lonza currently has18 production sites around the world, three of which, in Switzerland, the US and Czech Republic, are involved in peptide production.
The Braine l'Alleud site will significantly reduce customers' sourcingrisks, said the company, and allow it to deliver additional capacity morequickly.
A report by Frost & Sullivan published last January set the globaltherapeutic peptides market at around €756 million, the majority of which is in peptides are used in drug formulation and clinical trials.
As for UCB, the disposal of the business represents a further step towardsits goal of becoming a leader in the global biopharmaceutical area with aspecific focus on R&D and commercialisation of therapeutic solutions forsevere diseases.