Roche poised to get even bigger in biomanufacturing
pharmafile | October 15, 2013 | News story | Manufacturing and Production |Â Â Jobs, Merck, Roche, cutsÂ
Roche plans to invest a massive 800 million Swiss francs ($882m) over the next five years to increase manufacturing capacity for its new generation of biologic drugs.
The money will be spent upgrading facilities in Germany, Switzerland and the US and will create around 500 new jobs, according to the firm.
The news is a welcome positive for the pharma sector that has already seen Teva announce 5,000 job cuts, and Merck & Co unveils plans to cut 8,500 more this month.
The Swiss pharma major is in the midst of the launch phase for a series of new biologics, including RoActemra (tocilizumab) for rheumatoid arthritis and two follow-ups to its breast cancer blockbuster Herceptin (trastuzumab), namely Perjeta (pertuzumab) and its first antibody-drug conjugate (ADC) Kadcyla (trastuzumab emtansine).
Roche also has around 39 biologic medicines in its pipeline – including right ADCs – and wants to make sure it has plenty of manufacturing capacity to bring new products to market.
Around 250 of the new jobs – and 260 million francs of the investment – will be at US facilities in Oceanside and Vacaville, California, operated by its Genentech unit, which already employs 10,000 people in the state. Once the expansion is completed, Vacaville will become the largest biotech facility in the world, said Roche.
Absent from the US upgrade plans is Genentech’s third facility in South San Francisco, which was the first to be set up by company and has been in operation since the mid-1980s. Last year it emerged that the plant had failed an inspection by the FDA which uncovered a number of Good Manufacturing Practice violations, although these issues have since been resolved.
Turning to Europe, Roche said it site in Penzberg, Germany, will receive approximately 350 million francs in investment aimed at increasing manufacturing capacity and refurbishing equipment with around 200 new positions created. It will also construct a new 190 million-franc ADC production facility in Basel, Switzerland, adding around 50 jobs.
“As the world’s largest supplier of biologics, Roche is committed to making the necessary investments to ensure ongoing supply of these medicines at the highest quality standards,” said Daniel O’Day, chief operating officer of Roche’s pharmaceuticals division.
“Increasing our manufacturing capacity also highlights the confidence we have in the research and development of a range of new biologic medicines that will help serve unmet medical needs,” he added.
The increased capacity will help Roche meet expected rising demand for its new products, particularly its new breast cancer portfolio.
Among these, Perjeta was launched in the US last year for use alongside Herceptin (trastuzumab) and docetaxel in patients with advanced or locally recurring breast cancer, although its initial rollout was held back by some production issues that have now been resolved.
It was also cleared for first-line use in the US and in the EU earlier this year, and posted sales of 108 million francs in the first half of this year, with more than 80% of the total coming from the US market.
Analysts have suggested Perjeta could reach the $1 billion sales threshold within five years, particularly if it picks up approval for neo-adjuvant treatment of breast cancer.
Meanwhile Kadcyla – which debuted in the US in February and was launched in Switzerland in May as a second-line therapy after Herceptin – has also got off to a rapid start with first-half sales of 83 million francs. Its sales potential has been put at between $2 billion and $5 billion.
Phil Taylor
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