The Big Red Biotech Blog

Roche Cuts to Hit Genentech But No R&D

In a follow up story to Roche's announced operational excellence cuts this morning, Xconomy reports that Genentech manufacturing staff will see cuts in South San Francisco (350-450), Vacaville (100) and Oceanside (90), but nobody from R&D or early drug development is expected to go. 

Roche Cuts to Hit Hundreds of Genentech Workers; Scientific Staff is Spared.

The handwriting has essentially been on the wall for a lot of the manufacturing operations in South San Francisco. As far back as 2006, Genentech said it was planning to shift the manufacturing group on campus away from commercial output, and gear it more toward producing batches for use in clinical trials, said Genentech spokeswoman Robin Snyder.  The cuts will commence now and be completed by 2012.

 

Posted by Bruce Lehr November 17th 2010.

Roche Starts Cutting 4800 Jobs. Kills RNAi.

Back in early September, Roche announced a "Group-wide Operational Excellence" program aimed at reducing costs substantially and making the company more efficient - R&D was one area cited as being a target for efficiency gains.

Today, stories appeared in Fierce Biotech, PharmaGossip, the WSJ and Pharmalot blog detailing the plan's implementation. Roche today announced it will cut 4800 jobs that will save the company an expected $2.4 billion.  Cuts became necessary due to some savings expected to be gained from streamlining post the Genentech integration.  Roche has also experienced major revenue delays with its taspoglutide and T-DM1 molecules not being approved when expected.  It's Tamiflu franchise has also seen a significant dip in sales. Less revenue = less jobs.  Simple equation really - albeit unsatisfying if you are one of the 4800 affected.

Here's the job cut summary:

• 2650 sales jobs will be cut mostly from primary care business
• 1350 jobs will come from manufacturing
• 800 product development jobs gone
• 600 jobs cut from research and early development
• 640 jobs come from the diagnostics group
• 260 administrative jobs will cease
• 800 jobs will be saved through internal transfers and 700 will be transferred to outside companies
• The net job loss will be 4800 or about 6% of Roche's WW workforce

Other notable actions in this reorganization include, Roche closing plants in Florence, SC, Boulder, CO and in Graz, Aus (diagnostics).  Roche will also kill its RNAi program completely.  That means it will stop activities in Kulmback, Ger; Nutley, NJ and Madison, WI. 

As reported in Xconomy today, the Roche decision to leave RNAi work has had reverberations on the RNAi companies themselves.  Both Alnylam and Tekmira stock experienced some negative wave effects from the Roche decision.  Both companies have been Roche partners in the past on RNAi therapeutics - or in Tekmira's case delivery of RNAi molecules.  Alnylam landed a $331 M upfront payment from Roche back in July 2007 and Tekmira garnered $18.4 M in May 2009.  Both companies indicated that they were sorry to see Roche go but have other partnerships ongoing. 

Alnylam lost another key partnership with Novartis in past couple of months as their 5-year development agreement was not renewed.  But they still have agreements with Takeda, Sanofi-Aventis and Biogen Idec.  Tekmira stated it  has ongoing partnerships with Takeda, Pfizer and BMS.  However, it should give someone pause when Roche - who many consider to be the leading innovator in the industry right now at least among Big Pharma - decides to cease RNAi work.

 

 

Posted by Bruce Lehr November 17th 2010.

 

 

 

Focus on Discovery, Not Decision-Making, Is Key To Success

WHAT IF YOU DISCOVER THAT YOU CAN'T MAKE DECISIONS? WHAT THEN?

Focus on Discovery, Not Decision-Making, Is Key To Success. by Steven Spear in Xconomy.

DOH!

Senior managers must not only teach people to be great discoverers, but create an environment where discovery happens all the time. When you ask people to describe the best leader they ever had, no one ever talks about the best decision-maker, but about their best teacher.

Make sure employess can tell when something is amiss. And when a problem is detected, people simply cannot turn off the alarm bells at any time.

Instead, they must solve problems as they arise both to make the immediate symptom disappear, but also to develop new knowledge that will prevent the problem from recurring.

Leaders can and must pursue success by learning the new skills and core competencies of innovation. This is especially relevant now during this period of economic recovery when learning and adaptation are more important than ever.

Posted by Bruce Lehr September 22nd 2010.

 

 

 

 

 

 

Biotech on a Shoestring? There's a Better Way

Follow in the footsteps of other industries like automobiles or electronics.  Cut costs to reduce waste and to add value for the customers. Repeat over and over again with a customer focus in mind.

Biotech on a Shoestring? There's a Better Way.

Seems like simple advice that others have employed successfully.  Now it's well past time that Biotech follow suit. Waste not. Profit more.

Posted by Bruce Lehr July 27th 2010.

Whitepaper: Supplier-Integrated Raw Material Systems Support

My colleagues, Mason Williams, SAFC Market Segment Manager, and Brad Riesenberger, Corporate Communications have created a new whitepaper entitled, " Supplier-Integrated Support of Biopharmaceutical Raw Material Systems Promotes Operational Excellence and Risk Mitigation".

The paper discusses opportunities to reduce risk and cost by working with suppliers who can offer novel supply chain solutions and promote reproducibility in production processes. Vendor-partnered solutions are highlighted that can deliver leaner and safer processes for raw material handling.

Posted by Bruce Lehr April 22nd 2010