Roche Builds Factories for Genetech

Roche announced this week that it is investing $766.3 million in new manufacturing facilities to produce the Genentech cancer drugs Herceptin and Avastin, and the hormone EPO. A new Roche factory in Penzberg, Germany, will make the breast cancer drug Herceptin and cost 400 million Swiss francs ($306.4 million). Another factory, also located in Penzberg, will manufacture the anemia treatment EPO with an investment of 200 million Swiss francs ($153.3 million). Meanwhile, work is beginning on a facility in Basel, Switzerland, to make the active ingredient in Avastin, bevacizumab. This factory will cost 400 million Swiss francs ($306.4 million).

RED HERRING | Roche Builds Factories

BioBOOM Op/Ed: The name of the game now seems to be production capacity and there is plenty of under capacity "if" you have the right biological. In addition, on June 17, Genentech announced its purchase of Biogen Idec’s 60-acre factory in Oceanside, California, for $408 million in cash. Better investment question might be who is getting the bio-production equipment business at these new sites?

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