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Roche to Restructure Small Molecule Mfg. Network

Will exit four sites, affecting 1,200 positions

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By: Kristin Brooks

Managing Editor, Contract Pharma

Roche plans to close four manufacturing sites in Clarecastle, Ireland; Leganes, Spain; Segrate, Italy; and Florence, U.S. to address current underutilization as a result of its evolving portfolio. The company is looking into divestment opportunities for these facilities.
 
To support the manufacture of a new generation of specialized small molecule medicines—produced in lower volumes than traditional medicines—Roche is investing 300 million Swiss francs in a dedicated facility in Kaiseraugst, Switzerland to provide future technology requirements.
 
“With these changes we are responding to the evolution of our small molecule portfolio towards specialized medicines produced in lower volumes,” said Daniel O’Day, chief operating officer, Pharmaceuticals Division of Roche. “We are aware of the impact this decision has on our colleagues, and we will do our utmost to support them during this transition.”
 
The transition will begin in 2016 and is planned to end by 2021. Restructuring costs are estimated to be CHF 1.6 billion until 2021, of which as much as CHF 600 million will be in cash. 

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