Roche Nutley, NJ to close research and development activities

Roche has announced that it will consolidate activities within its Research and Early Development division. Roche’s site in Nutley, NJ in the United States will be closed and research and development activities will be consolidated at the existing sites in Germany and Switzerland, focusing on oncology, virology, metabolism and neuroscience.

The resulting savings from the global site consolidation and related infrastructure cost, the bundling of support functions as well as shifts in the portfolio will allow Roche to reallocate resources to the growing number of clinical programs. As a result overall R&D expenditures are expected to remain stable.

Roche will publish details of the expected financial impact of the planned measures, in particular one-time costs associated with the closure of the Nutley site, as part of its half-year results announcement on July 26. The financial outlook for 2012 remains unchanged.

Establishment of US East Coast Translational Clinical Research Center

A location is being identified on the East Coast to focus on translational clinical research to support Roche US-based clinical trials and early development programs, support and maintain Roche interactions with the U.S. Food and Drug Administration (FDA), and enhance Roche’s collaborations with US based partners, such as academic institutions and biotech companies. This new center is expected to host around 240 employees.

The Roche Group overall employs 20’800 people in the US and continues to strongly invest in Pharma research & development in the United States through its Genentech organisation, which is based in South San Francisco and not affected by this reorganisation.

Roche Nutley – Estimated impact on jobs and timetable

As a result of the closure of the Nutley site, Roche expects a reduction of around 1’000 positions on the US East Coast. The transferred activities can be largely absorbed by the existing sites in Switzerland and Germany with an increase of about 80 positions.

Roche is committed to handling the designated job reductions in a respectful manner and to finding socially responsible solutions for the employees affected. This includes informing employees who will be affected as soon as possible and providing appropriate plans and programs to support them during this transition process.

The new US East Coast Translational Research Clinical Center is planned to be operational by early 2013. The transfer of business operations in Nutley is planned to be completed by end of 2013.

Jean-Jacques Garaud to leave Roche Pharma Research and Early Development

Jean-Jacques Garaud, head of Roche Pharma Research and Early Development and member of the Enlarged Corporate Executive Committee, will leave the company effective 30 June 2012. Effective 1 July 2012, Mike Burgess, currently Global Head Oncology and Large Molecule Research, will become acting head of Roche Pharma Research and Early Development and a member of the Enlarged Corporate Executive Committee, reporting to Group CEO Severin Schwan.

With regard to the management change Schwan said, “Jean-Jacques Garaud has played a key role in helping to strengthen Roche’s R&D pipeline. We would like to thank him for his valuable contributions to the Group’s success.”