2023-06-01 08:26:11 ET
Roche Holding AG ( OTCQX:RHHBY ) ( OTCQX:RHHBF ) is looking for an outright sale or closure of a California manufacturing plant focused on biological drug production, Reuters reported Thursday, citing emails sent to employees.
The Swiss pharma giant bought the plant in Vacaville, California, more than a decade ago as part of its Genentech acquisition in the U.S. It manufactures cancer drugs, including Avastin and Herceptin, as well as rheumatoid arthritis therapy Actemra.
In a statement, Roche ( OTCQX:RHHBY ) confirmed its plans to divest the site, which also manufactures monoclonal antibodies from genetically modified living cells.
The company said it doesn’t anticipate a need for the plant’s large-scale drug production, which it hopes to move to one of its newer facilities.
Roche ( OTCQX:RHHBY ) noted that there would be no immediate impact on operations or employees and added that the manufacturing site would continue to function as it looks for a buyer. According to emails, if there is no buyer for the site, the company expects to ramp down its operations and shut it down in 2028 – 2029.
The decision comes as Roche ( OTCQX:RHHBY ) is seeing a sharp decline in its COVID-19 products. In Q1 2023, COVID antibody therapy Ronapreve, for which the company partnered with Regeneron ( REGN ), generated CHF676M in sales marking a ~12% YoY decline adjusted for forex changes.
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Roche to divest biologics production plant in California – Reuters