Chr. Hansen Holding A/S and Lonza AG have signed an agreement to establish a joint venture to pioneer the live biotherapeutic products (LBPs) industry and position themselves as the leading contract development and manufacturing partner (CDMO) for biotech and pharma customers. The joint venture will be a 50/50 controlled legal entity that will operate from its headquarters in Basel (CH) and have production facilities in Denmark and Switzerland.

The phased investment of approximately EUR 90 million will be shared equally between the parties over a period of three years and will be deployed to build cGMP-compliant pharma production capabilities. The joint venture will upgrade existing facilities in Hørsholm (DK) and equip new facilities in Basel (CH) to serve pre-clinical to phase II projects. Further facilities for phase III and commercial manufacturing will be developed as the pipeline matures. Investments follow a stage-gate-process with clearly de-fined targets. EUR 45 million will be spent initially and additional EUR 45 million once customer demand for clinical phase III and commercial supply is confirmed. The joint venture is expected to be largely self-funding after the production set-up has been established.

Lonza is an integrated solutions provider that creates value along the Healthcare Continuum®. Founded in 1897 in the Swiss Alps, Lonza today is a well-respected global company with more than 100 sites and offices and approximately 15,500 full-time employees worldwide at the end of 2018. The company generated sales of CHF 5.5 billion at the end of 2018 with a CORE EBITDA of CHF 1.5 billion.

Chr. Hansen is a global bioscience company that develops natural solutions for the food, nutritional, pharmaceutical and agricultural industries. We develop and produce cultures, enzymes, probiotics and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements and even animal feed. Revenue in the 2017/18 financial year was EUR 1,097 million. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen.

Baker McKenzie acts as advisor to both Lonza and Chr. Hansen regarding corporate law, tax and transfer pricing aspects of the joint venture. The team lead by René Schreiber and Balthasar Denger (Tax and Transfer Pricing, Zurich) includes Manuel Meyer (Corporate, Zurich) Fabian Greutert (Tax, Zurich), Géry Bombeke, Philippe Lion, Thomas Gernay (all Tax and Transfer Pricing, Brussels), Lien Willems (Project Management, Brussels), Xavier Vinyals Mirabent, Folkert Mulder (both Transfer Pricing, Amsterdam), Aurelie Goville, Gilles Solenne (both Corporate, Paris), Paubel Jeremie (Employment, Paris) as well as Arne Møllin Ottosen (Corporate and Tax, Kromann Reumert, Copenhagen).

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