(This Might 31 story has been corrected to repair the spelling of govt’s title to Teresa, not Theresa, in paragraph 5)

By Michael Erman

(Reuters) – Swiss drugmaker Roche Holding AG (OTC:) plans to promote its 800-employee drug manufacturing plant in Vacaville, California, or it’ll shut the manufacturing unit by 2029, based on e-mailed letters to staff seen by Reuters on Wednesday.

In an announcement, Roche confirmed the divestiture plan for the location, which makes monoclonal antibodies from genetically modified residing cells, however didn’t handle the potential closing of the plant or its timeline.

The corporate stated within the assertion it doesn’t count on to wish the very massive volumes of the medicines the plant gives, and large-scale manufacturing shall be finished in one of many firm’s newer vegetation.

It additionally plans to give attention to medicine focusing on smaller affected person populations transferring ahead and to attract on a variety of biotechnology strategies past monoclonal antibodies, it stated, including there could be no affect to operations or workers at the moment.

Roche is underneath new management this 12 months after CEO Thomas Schinecker took the helm and Teresa Graham turned head of the prescription drugs division in March.

The Swiss group is underneath strain to develop new therapies to offset the lack of billions in gross sales as a result of low cost biotech copies of its established most cancers medicines Herceptin, Avastin and Rituxan, a few of that are made in Vacaville.

It is usually contending with dipping income for its COVID-19 therapies and assessments.

The corporate stated it’s in search of a purchaser that may proceed to make use of the plant as an working facility.

If the corporate is unable to discover a purchaser, it’ll ramp down manufacturing and shut the plant in 2028 to 2029, the emails stated.

Roche acquired the plant greater than a decade in the past with its buy of U.S. biotech Genentech. The plant makes medicine for most cancers together with Avastin and Herceptin, in addition to Actemra for rheumatoid arthritis.

In the course of the pandemic, Roche collaborated with Regeneron (NASDAQ:) Prescription drugs to extend provide of that drugmaker’s COVID-19 antibody remedy. Roche manufactured the remedy on the Vacaville plant, which it sells exterior the U.S. underneath the model title Ronapreve.