Sep 3, 2008

Roche to leave Palo Alto

Move now a certainty; solar panels to stay

By Will Oremus / Daily News Staff Writer

Roche's departure from Palo Alto is now a certainty, the Swiss pharmaceutical company confirmed Tuesday. Some of the 1,000 employees at the firm's research and development facility on Hillview Avenue will move elsewhere, and others will lose their jobs, a company spokeswoman said.

The company has not yet set a timetable for the closure, said Jacqueline Wallach, vice president of communications.

Roche announced in July it would shutter its million-square-foot complex in the Stanford Research Park if its bid for South San Francisco-based biotech Genentech succeeds. Though the deal is still under negotiation, the move is no longer in question.

"We are closing down the site," Wallach said. She would not discuss the reasons in detail but said it's "all linked together" with the company's plans to acquire Genentech.

Wallach said the move is not motivated by any particular problems with the city of Palo Alto. Roche has been here since it acquired locally based pharmaceutical manufacturer Syntex in 1994, although it downsized the facility after that purchase.

The Palo Alto laboratories concentrate on inflammatory and viral diseases. Once they close, the inflammation division will move to the company's offices in Nutley, N.J. The virology division will move to South San Francisco, assuming the Genentech deal goes through. It's unclear at this point how many local employees will be out of work.

The company also hopes to move its U.S. commercial operations from New Jersey to South San Francisco as part of the restructuring.

Roche already owns a majority stake in Genentech. On Aug. 13, a special committee of Genentech directors rejected Roche's $43.7 billion offer for the company's remaining shares, but said they would be open to a pricier bid.

"We are hoping for success," Wallach said.

Palo Alto will lose not only one of its largest employers but also a leading partner in its green energy program.

In July, the city announced Roche had applied for the largest solar power system ever installed in Palo Alto. The roof-mounted, 112,000-square-foot photovoltaic system will have a capacity of 1,021 kilowatts - enough to power an estimated 172 homes.

"We're going ahead with the solar panels" despite the planned move, Wallach said. "They're being installed as we speak."

Roche leases the site from Stanford Research Park.


E-mail Will Oremus at woremus@dailynewsgroup.com.