Roche Intent on Discovering Innovative Medicines in China

Roche (RHHBY.PK) has broken ground on an expansion of its facilities at its site in Shanghai’s Zhangjiang Hi-Tech Park, an ambitious expansion that seeks to provide the backbone for the next ten years of the company’s China growth. In addition, Roche has established an office for Roche Pharma Partnering in Asia at the site. The goal of both initiatives is to discover innovative medicines in China.

The Pharma Partnering business includes cooperation with universities, patent applications and M&A. The China office will be responsible for partnerships in China, South Korea, Taiwan and Singapore. In China, Roche is already working with three universities to develop drug delivery techniques. Worldwide, the company’s major partners are Genentech (DNA) and Chugai, plus 80 smaller alliances.

As part of their opening ceremonies, Roche is holding a two-day Pharma Partnering Forum on November 4-5 in Pugdong. Nigel Sheail, Global Head, Strategic Alliances & Acquisitions, and Mark Noguchi, Asia Regional Head, as well as local Directors Dr. Stella Xu and Dr. Frank Grams, and other Roche representatives from around the world, are meeting with China scientists and entrepreneurs hoping to partner with Roche. 

The expansion will include building two new administrative buildings, a facility devoted to quality control and an expanded warehouse. Roche’s existing administrative buildings will eventually be retrofitted to be brought up to the standards of the new facilities.

Roche said the buildings would take advantage of the latest green design features, which will result in a 35% drop in energy consumption per employee. Among other techniques, the new Roche buildings will use hydrogen nitride rather than Freon to run the air conditioning systems. Wherever possible, the company will use renewable energy.

The expansion is a continuation of Roche’s investment in China. Roche first entered China in 1926 and established a JV there in 1994. In 2004, the company opened the Roche China R&D Center at the Zhangjiang site. The company completed the Roche Shanghai High-Potent manufacturing plant to produce its Cellcept and Xeloda drugs in October 2005. One year ago, in October 2007, Roche finished the Pharmaceutical Development Center, completing its China value chain with locally-sited research, development, production and marketing facilities.

Disclosure: none.