Jul 24, 2008

Pharmaceutical could bolt from Palo Alto

Roche to leave city if Genentech deal goes through

By Will Oremus / Daily News Staff Writer

Palo Alto will lose one of its largest - and greenest - employers if the Swiss pharmaceutical giant Roche succeeds in its bid to buy South San Francisco-based Genentech.

The company plans to close its local research and development offices, which employ 1,000 workers, if the $43.7 billion deal goes through, said spokeswoman Jacqueline Wallach. Operations would be split between Roche's New Jersey offices and Genentech's South San Francisco campus.

Officials said the departure would be a blow to Palo Alto, which values Roche not only as a prestigious employer and taxpayer, but as a model for its green business program. Roche boasts an innovative recycling program and recently partnered with the city in signing up for a vast solar panel installation.

"They would definitely be missed," said Council Member Yoriko Kishimoto. "They've been a great corporate citizen. The biomedical/pharmaceutical field has been an important business for Palo Alto."

She added, "They have a fantastic environmental program. They're deep green."

The takeover bid still has hurdles to clear, including a lawsuit filed Wednesday by Genentech shareholders.

If it goes through, however, "It's a matter of when, not if" the Palo Alto facility closes, Wallach said. In other words, Roche's long-term lease on the million-square-foot Hillview Avenue site wouldn't stop it from moving.

She couldn't say whether the company would have to find a new tenant to replace it or what might happen to its solar plans.
"We're still evaluating the possibilities," Wallach said.



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