Healthy Skepticism Library item: 8254

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Publication type: news

Drugmaker Roche Boosting Spending on Research and Development, Forming 2 New U.S. Units
Associated Press 2007 Feb 5
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Full text:

Drugmaker Roche Raising R&D Spending
Monday February 5, 5:41 pm ET
Drugmaker Roche Boosting Spending on Research and Development, Forming 2 New U.S. Units

BASEL, Switzerland (AP) — Drugmaker Roche Holding AG said Monday it would increase its spending on research and development this year, partly through the creation of two new units based in the United States.

The Swiss-based pharmaceutical company, whose products include the flu treatment Tamiflu, said it would increase its total research spending this year from the 6 billion Swiss francs (about $4.8 billion) it spent in 2006. It said spending would rise even further in the next years. It did not provide precise figures.

Roche said the new research model would be organized around five centers combining development, regulatory approval and marketing for each of its drug lines.

The cancer drugs unit will be based in Nutley, New Jersey, the headquarters of the company’s U.S. subsidiary, Hoffmann-La Roche Inc.

Research focused on virology and inflammation will be done in Palo Alto, California, home of U.S. biotechnology company Genentech Inc., which is majority-owned by Roche.

The development of drugs for metabolic diseases, like diabetes, and central nervous systems, will be located in Basel.

Roche shares gained 0.6 percent to close at 238.50 francs ($191.18) in Zurich trading.