Swiss pharmaceutical manufacturer Lonza Group is in advanced talks to acquire Capsugel, a U.S. maker of capsule products and other drug delivery systems, for more than $5 billion, according to people familiar with the matter.
The deal would come as Lonza seeks to boost its life sciences capabilities and produce a wider range of molecules used in active pharmaceutical ingredients and drug delivery. It held unsuccessful talks to acquire U.S. drug delivery technology company Catalent Inc earlier this year.
Discussions between Lonza and Capsugel's owner, private equity firm KKR & Co, could lead to a deal as early this week, the people said on Sunday, cautioning that it was still possible for the negotiations to fall through.
The sources asked not to be identified because the negotiations are confidential. Capsugel, Lonza and KKR did not immediately respond to requests for comment.