Lonza in two biomanufacturing deals with Genentech

US biotechnology major Genentech has entered into an agreement with Lonza for the latter to buy its manufacturing facility in Porrino, Spain, for $150.0 million. Concurrently, Genentech will enter into a supply agreement for the certain Genentech products at Lonza's facility currently under construction in Singapore, with the US firm also receiving the right to exercise an exclusive option to purchase Lonza's Singapore facility. Under the terms of the deal, Lonza will acquire the site which has 40,000 liters of biologic manufacturing capacity and is currently dedicated to the production of Genentech's Avastin (bevacizumab). Lonza will continue producing Avastin for Genentech at Porrino under the terms of a supply agreement. US Food and Drug Administration licensure for producing Avastin at the Lonza plant in Singapore is expected in 2010 and Genentech has the option to buy that facility during the 2007 to 2012 period for a price of $290.0 million, plus an additional $70.0 million in milestone payments if certain performance milestones are met.