According to media report Roche Holding AG, the Swiss drugmaker, has revealed its intention to sell its biologic drug manufacturing plant located in Vacaville, California. Alternatively, the company may consider shutting down the facility by 2029. The plant currently employs approximately 800 workers.
In a statement issued by Roche, the company confirmed its plans for the divestiture of the site. However, Roche did not explicitly address the potential closure of the plant or provide a specific timeline for these actions.
Roche stated in the release that it anticipates a reduced need for the high volumes of medicines produced at the Vacaville plant. Instead, the company plans to conduct large-scale production at one of its newer facilities. Moreover, Roche expressed its intention to focus on developing drugs targeting smaller patient populations and to explore a broader range of biotechnology methods beyond monoclonal antibodies. The company emphasized that, at present, there will be no immediate impact on operations or employees.
The decision to divest the Vacaville plant comes as Roche aims to navigate the evolving pharmaceutical landscape. With Thomas Schinecker assuming the role of CEO and Teresa Graham leading the pharmaceuticals division as of March this year, the Swiss group seeks to counter the loss of substantial sales resulting from inexpensive biotech copies of its established cancer medications, including Herceptin, Avastin, and Rituxan, some of which are produced at the Vacaville facility. Additionally, Roche faces the challenge of declining revenue from its COVID-19 therapies and tests.
Roche intends to identify a potential buyer that will continue to operate the plant. However, if a suitable buyer is not found, the company will gradually reduce production until the plant's closure, which is projected to occur between 2028 and 2029, as stated in the e-mails sent to employees.
Roche originally acquired the Vacaville plant over a decade ago through its acquisition of the US biotech company Genentech. The facility is responsible for manufacturing drugs such as Avastin and Herceptin for cancer treatment, as well as Actemra for rheumatoid arthritis. During the pandemic, Roche collaborated with Regeneron Pharmaceuticals to expand the supply of the COVID-19 antibody treatment developed by the latter. Roche produced this treatment at the Vacaville plant, which it sells internationally under the brand name Ronapreve.
Roche remains committed to ensuring a smooth transition for both its employees and the plant's future operations during this divestiture process.
