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Exclusive: Lonza in talks to buy Capsugel for more than $5 billion - sources

(Reuters) - Swiss pharmaceutical manufacturer Lonza Group AG (LONN.S) 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.

Discussions between Lonza and Capsugel's owner, private equity firm KKR & Co LP (KKR.N), 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.

(Reporting by Greg Roumeliotis in New York; Editing by Bernard Orr)