Roche is doing its best to distance itself from the ranks of Big Pharma by dropping its membership in the Pharmaceutical Research and Manufacturers Association (PhRMA), the leading trade group for the U.S. pharmaceutical industry. Instead, Roche is shifting its alliance to the Biotechnology Industry Organization (BIO).
Not as dramatic but still noteworthy is that the company is also pulling its sponsorship of a pharmaceutical-related program at Rutgers University.
Less surprising (but equally symbolic) is the fact that South San Francisco will now become the center of Roche’s pharmaceutical & biotechnology operations in the U.S. housing its corporate offices and marketing operations. The move marks a departure from the traditional Big Pharma corridor in New Jersey to a much more bio-centric environment in Bay Area of northern California.
Most significant of all these changes is the decision to essentially abandon PhRMA. “Genentech and Roche believe BIO’s purpose is closely aligned with the direction of the new company and, therefore, can represent the company’s interest in Washington,” quoted a Roche spokesperson.
“It’s a Genentech decision not to join PhRMA,” said Billy Tauzin, Chairman of PhRMA. “They feel they are different.” Certainly, this is a personal blow to Tauzin. His affinity for Genentech is widely known as Tauzin’s cancer was treated by Avastin. It’s an experience he speaks of regularly in public forums and part of his powerful messaging as Chairman of PhRMA.
At 3:38 in the video above, discussing the Obama administration’s push for healthcare reform, he refers to his own personal battle with the disease. Ironically, he states (as he often used to): “I am now working for the very company that invented the medicine that saved my life”.
Not anymore…
What will happen to the Roche site in Nutley, NJ?
From what I understand, they will maintain the Nutley site for R&D and manufacturing purposes; however, their presence will be much, much less than what is has been historically. And, the majority of decision makers will be based in Genentech’s facility in South San Francisco.
Roche is becoming a California land baron with all the sites they occupy in Pleasanton, Palo Alto, South San Francisco, etc. Some consolidation would make sense for all of their northern California operations.