Roche and Lonza announced that Genentech Singapore Pte. Ltd (Genentech Singapore), a wholly-owned member of the Roche Group, elected to exercise an option to purchase cell culture biologic manufacturing facility from Lonza in Singapore. The facility, which is mechanically complete, will be merged with Genentech Singapore's existing biologic manufacturing facility.

As part of the integration between Roche's and Genentech's combined technical operations, the biotechnology production facilities in Singapore currently operating under the Genentech name will later this year operate under the name of Roche Singapore Technical Operations. Lonza will continue to build up its own large-scale mammalian manufacturing plant in Singapore, which will come on-stream in 2011.

The Singapore manufacturing facility is acquired for a purchase price of USD 290 mio plus additional milestone payments of USD 70 mio. It is expected to produce Avastin (bevacizumab) bulk drug substance, has 80,000 liters of fermentation capacity and is located on approximately 10 acres with an option for up to 20 additional acres. Genentech Singapore's existing 1,000-liter E.coli manufacturing facility is expected to receive FDA licensure for bulk drug production of Lucentis (ranibizumab) injection in 2010. The combined Singapore operations will play a key role in Roche's global manufacturing network.

With the exercise of the option and resultant merger, approximately 230 Lonza employees will join Genentech Singapore Technical Operations, for a total site headcount of approximately 325. Lonza continues to employ over 80 people working at its own mammalian manufacturing plant and plans to ramp up this number to over 300 employees in the next 12 months and beyond.

"We are very pleased to exercise our option to purchase from Lonza the biologic manufacturing facility that Lonza built and to combine it with our current production plant in Singapore. As part of our globally integrated Genentech and Roche manufacturing network, this world-class operation in Singapore will play a major role in bringing important medicines to the patients who need them," said Jim Miller, vice president and general manager, Genentech Singapore. "Lonza has proven to be a valuable partner in our efforts to build our manufacturing capacity and we greatly appreciate the achievements of the many Lonza and Genentech teams who have made this project a success, in addition to the continued support of the Singapore Economic Development Board. We welcome our new Lonza colleagues to the Roche Group and look forward to their contributions to our continued success in Singapore."

"We are happy to have built and handed over a state-of-the-art facility to Genentech and to close the project both on time and on budget. We believe Lonza successfully proved its engineering capabilities and its unique know-how in starting up and operating complex biopharmaceuticals manufacturing facilities," said Mike Brown, VP Operations for Lonza Biologics Singapore. "The handover of the facility to Genentech went smoothly and was characterized by mutual respect and professionalism. Lonza will continue to operate its own 4 x 20,000 liters mammalian manufacturing and process development facility and Cell Therapy unit in Singapore, to come on stream in 2011."

Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics.

Lonza is one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries. Its products and services span its customers' needs from research to final product manufacture.