Yesterday, Roche announced that it would be cutting 4800 jobs, closing or reducing staff at several manufacturig sites, and would be shutting down its RNAi research programs at 3 sites. The cuts were heavily centered in US sites. The same formula may not apply to the growing economies in the East, particularly China.
In a Seeking Alpha reprint of a China Daily interview, Roche's CEO Severin Schwan is quoted as saying, "For China, the situation is totally different; therefore, in China, we will continue to invest and also expect the headcount in China to increase."
Roche can claim “early adopter” status in China having been there since 1988. It opened its first R&D center in Shanghai in 2004, and in 2007, followed up with a second Shanghai R&D center. This $100 million facility was designed to be capable of taking a drug aimed specifically at the China market from discovery through regulatory approval. In 2008, Roche opened an Asia partnering office in Shanghai’s Zhangjiang Hi-Tech Park. It also has an on-going relationship with BioDuro, now part of PPD for discovery chemistry.
Look for cuts in the West to help fuel growth in the East for Roche.
Posted by Bruce Lehr November 18th 2010.
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