Hoffmann-La Roche

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Roche Holding AG
Type Aktiengesellschaft
Traded as SIXROG, OTCQXRHHBY
Industry Pharmaceuticals
Founded 1896
Founders Fritz Hoffmann-La Roche
Headquarters Basel, Switzerland
Key people Christoph Franz (Chairman of the board),
Severin Schwan (CEO),
Daniel O'Day (COO, Pharmaceuticals),
Roland Diggelmann (COO, Diagnostics)
Products Pharmaceuticals and diagnostics (list of products...)
Revenue CHF 46.780 billion (2013)[1]
Operating income CHF 17.904 billion (2013)C
Profit CHF 11.373 billion (2013)[1]
Total assets CHF 39.884 billion (2013)[1]
Total equity CHF 21.241 billion (2013)[1]
Employees 85,080 (2013)[1]
Subsidiaries Genentech, Ventana
Website www.roche.com

F. Hoffmann-La Roche AG is a Swiss global health-care company that operates worldwide under two divisions: Pharmaceuticals and Diagnostics. Its holding company, Roche Holding AG, has bearer shares listed on the SIX Swiss Exchange.

The company headquarters are located in Basel and the company has many pharmaceutical and diagnostic sites around the world - including: Pleasanton, CA; Vacaville, California, Oceanside, California, Branchburg, NJ; Indianapolis, Indiana; Florence, South Carolina; and Ponce, Puerto Rico in the US; Welwyn Garden City and Burgess Hill in the UK; Clarecastle in Ireland; Mannheim and Penzberg in Germany; Mississauga and Laval in Canada; Shanghai in China; Mumbai & Hyderabad in India; São Paulo, Brazil; Segrate, Milan in Italy; Johannesburg in South Africa; Karachi, Islamabad and Lahore in Pakistan. There are 26 manufacturing sites worldwide.[1]

The company owns the American biotechnology company Genentech, which is a wholly owned affiliate, and the Japanese biotechnology company Chugai Pharmaceuticals as well as the Tucson, Arizona based Ventana.

Roche's revenues during fiscal year 2013 were CHF 46.78 billion.[1] Roche is the fifth-largest pharma company worldwide.[2] Descendants of the founding Hoffmann and Oeri families own slightly over half of the bearer shares with voting rights (a pool of family shareholders 45%, and Maja Oeri a further 5% apart), with Swiss pharma firm Novartis owning a further third of its shares. Roche is one of the few companies increasing their dividend every year, for 2013 as the 27th consecutive year.[3]

F. Hoffmann-La Roche is a full member of the European Federation of Pharmaceutical Industries and Associations (EFPIA).[4]

History[edit]

Founded in 1896 by Fritz Hoffmann-La Roche, the company was early on known for producing various vitamin preparations and derivatives. In 1934, it became the first company to mass-produce synthetic vitamin C, under the brand name Redoxon. In 1957 it introduced the class of tranquilizers known as benzodiazepines (with Valium and Rohypnol being the best known members). Roche has also produced various HIV tests and antiretroviral drugs. It bought the patents for the polymerase chain reaction technique in 1992. It manufactures and sells several cancer drugs and is a leader in this field.

In 1956, the first antidepressant, iproniazid, was accidentally created during an experiment while synthesizing isoniazid. Originally, it had been intended to create a more efficient drug at combatting Tuberculosis. Iproniazid, however, revealed to have its own benefits; some people felt it made them feel happier. It was withdrawn from the market in the early 1960s due to toxic side-effects.

In 1976, an accident at a chemical factory in Seveso, Italy, owned by a subsidiary of Roche caused a large dioxin contamination; see Seveso disaster.

In 1982, the United States arm of the company acquired Biomedical Reference Laboratories for US$163.5 million. That company dated from the late 1960s, and was located in Burlington, North Carolina. That year Hoffmann–La Roche then merged it with all of its laboratories, and incorporated the merged company as Roche Biomedical Laboratories, Inc. in Burlington. By the early 1990s, Roche Biomedical became one of the largest clinical laboratory networks in the United States, with 20 major laboratories and US$600 million in sales.[5]

In 1995 the era of highly active anti-retroviral therapy (HAART) was initiated by the United States FDA's approval of Hoffman LaRoche's HIV protease inhibitor saquinavir. Within 2 years of its approval (and that of ritonavir 4 months later) annual deaths from AIDS in the United States fell from over 50,000 to approximately 18,000 [6]

On April 28, 1995 Hoffmann–La Roche sold Roche Biomedical Laboratories, Inc. to National Health Laboratories Holdings Inc. (which then changed its name to Laboratory Corporation of America Holdings).[7] Roche acquired Syntex in 1994 and Chugai Pharmaceuticals in 2002.

On January 22, 2008, Roche acquired Ventana Medical Systems for $3.4 billion.[8]

On January 2, 2009, Roche acquired Memory Pharmaceuticals Corp..[9] On March 26, Roche acquired Genentech for $46.8 billion.[10] On 12 March 2009 Roche agreed to fully acquire Genentech, in which it had held a majority stake since 1990,[11] after 8 months of negotiations. As a result of the Genentech acquisition, Roche closed its Palo Alto based research facilities and moved them to their campus that straddles the border between Clifton, New Jersey and Nutley, New Jersey while Roche's United States headquarters, located on the site since 1929, was moved to Genentech's facility in South San Francisco.[12] Genentech became a wholly owned subsidiary group of Roche on 25 March 2009.[13]

On April 13, Roche acquired Medingo Ltd., for $160 million.[14] On August 23, 2010, Roche acquired BioImagene, Inc., for $100 million.[15]

In 2011, the company received the ISPE Facility of the Year Award for Process Innovation for Roche’s “MyDose” Clinical Supply project.[16] On March 15, Roche acquired PVT Probenverteiltechnik GmbH for up to 85 million EUR.[17] On July 19, Roche acquired mtm laboratories AG for up to 190 million EUR.[18] On October 17, Roche acquired Anadys Pharmaceuticals, Inc. for $230 million.[19]

On June 26, 2012, Roche announced the closure of the Nutley/Clifton campus, which was completed in 2013. The property is in the process of remediation.[20]

On July 2, 2013, Roche Diagnostics acquired blood diagnostics company Constitution Medical Inc. for $220 million.[21]

On April 7, 2014, Roche announced its intention to acquire IQuum for up to $450 million,[22] as well as the rights to an experimental drug (ORY-1001) from Spanish company Oryzon Genomics for $21 million and up to $500 million in milestone payments.[23] On June 2, Roche announced its intention to acquire Genia Technologies Inc. for up to $350 million.[24] In August 2014, the company agreed to purchase Californian-based pharmaceutical firm InterMune for $8.3 billion, at $74 a share this represents a 38% premium over the final share closing price.[25][26] [27]

Products[edit]

Drugs produced by Roche include:

Diabetes management products produced by Roche under the Accu-Chek brand include Accu-Chek Mobile, Accu-Chek Aviva, Accu-Chek Compact Plus, Accu-Chek Aviva Expert, Accu-Chek Active, Accu-Chek Advantage, Accu-Chek Performa, Accu-Chek Aviva Nano, Accu-Chek Performa Nano blood glucose monitors. Accu-Chek Spirit and Accu-Chek Combo insulin pumps. Accu-Chek 360 and SmartPix diabetes management software.

Controversies[edit]

In 1999 the firm plead guilty to participation in a worldwide conspiracy to raise and fix prices for vitamins sold in the USA and globally. Hoffmann-La Roche paid $500 million in criminal fines[28] to the United States. Stanley Adams, Roche's World Product Manager in Basel, contacted the European Economic Community in 1973 with evidence that Roche had been breaking antitrust laws, engaging in price fixing and market sharing for vitamins with its competitors. Roche was fined accordingly, but a bungle on the part of the EEC allowed the company to discover that it was Adams who had blown the whistle. He was arrested for unauthorised disclosure — an offence under Swiss law — and imprisoned. His wife, having learnt that he might face decades in jail, committed suicide.[29] Roche was fined a second time for vitamin price fixing in 1999, eventually paying a $500M fine.[29]

Oseltamivir is considered to be the primary antiviral drug used to combat avian influenza, commonly known as the bird flu. Roche is the only drug company authorized to manufacture the drug, which was discovered by Gilead Sciences. Roche purchased the rights to the drug in 1996 and in 2005 settled a royalty dispute, agreeing to pay Gilead tiered royalties of 14-22% of annual net sales.[30]

On 20 October 2005, Hoffmann–La Roche decided to license other companies to manufacture Oseltamivir.[31]

Roche sued Cipla before Delhi High Court claiming that Cipla’s generic product Erlocip violates its former Indian Patent IN196774 claiming “Erlotinib Hydrochloride” which is an anti cancer drug. Pharmaceutical companies Cipla and Hoffmann-La Roche have agreed to a mediation process to resolve their dispute over the patent of cancer drug Tarceva (Erlotinib) as per the suggestion of a division bench of the Delhi High Court.[32]

Collaborative research[edit]

In addition to internal research and development activities F. Hoffmann–La Roche is also involved in publicly funded collaborative research projects, with other industrial and academic partners. One example in the area of non-clinical safety assessment is the InnoMed PredTox.[33][34] The company is expanding its activities in joint research projects within the framework of the Innovative Medicines Initiative of EFPIA and the European Commission.[35]

Additional key persons[edit]

In addition to corporate executive committee members mentioned in the summary information box

  • Chief Financial and IT Officer, Alan Hippe (1967)
  • Head Group Human Resources, Silvia Ayyoubi (1953)
  • General Counsel, Gottlieb A. Keller (1954)
Enlarged Corporate Executive Committee
  • Chairman and CEO Chugai, Osamu Nagayama
  • Head Roche Pharma Research and Early Development, John C. Reed
  • Head, Genentech Research and Early Development, Richard Scheller
  • Head Group Communications, Stephan Feldhaus
  • Head Roche Partnering, Sophie Kornowski-Bonnet
  • Secretary to the Corporate Executive Committee, Per-Olof Attinger

Bibliography[edit]

  • Hans Conrad Peyer (1996) Roche - A Company History 1896-1996 Basel: Editiones Roche ISBN 3-907770-59-5

See also[edit]

References[edit]

  1. ^ a b c d e f g "Annual Report 2013" (PDF). Roche. Retrieved 17 March 2014. 
  2. ^ Pharm Exec's 2013 ranking of the top 50 pharma companies worldwide, www.pharmexec.com. Retrieved 10 July 2013
  3. ^ Investors Update, 4 March 2014
  4. ^ "The Pharmaceutical Industry in Figures - 2008 Edition". European Federation of Pharmaceutical Industries and Associations (EFPIA). p. 49. Retrieved 2008-08-25. 
  5. ^ "Roche Biomedical Laboratories, Inc". FundingUniverse.com. 
  6. ^ "HIV Surveillance --- United States, 1981--2008". Retrieved 8 November 2013. 
  7. ^ Laboratory Corp of America Holdings · 10-Q · For 3/31/95, SECInfo.com, Filed On 5/15/95, SEC File 1-11353, Accession Number 920148-95-11
  8. ^ "Roche buys Ventana". Retrieved 2 June 2014. 
  9. ^ "Roche buys Memory Pharmaceuticals". Retrieved 2 June 2014. 
  10. ^ "Roche buys Genentech". Retrieved 2 June 2014. 
  11. ^ Pollack, Andrew (5 February 1990). "Genentech-Roche Deal May Spur Similar Ties". The New York Times. Retrieved 2009-04-11. 
  12. ^ Bawden, Tom (13 March 2009). "Roche swallows Genentech in third large drugs deal". The Times (London). Archived from the original on 2001-06-12. Retrieved 2009-04-11. 
  13. ^ Jucca, Lisa; Cage, Sam (26 March 2009). "Roche completes Genentech buy". Reuters. Retrieved 2009-04-11. 
  14. ^ "Roche buys Medingo". Retrieved 2 June 2014. 
  15. ^ "Roche buysBioImagene". Retrieved 2 June 2014. 
  16. ^ ISPE "2011 Facility of the Year Category winners!". Retrieved 2012-06-28. 
  17. ^ "Roche buys PVT". Retrieved 2 June 2014. 
  18. ^ "Roche buys mtm labs". Retrieved 2 June 2014. 
  19. ^ "Roche buys Anadys". Retrieved 2 June 2014. 
  20. ^ "Roche announces closure of Nutley, NJ site". Retrieved 28 June 2012. 
  21. ^ "Roche buys Constitution Medical". Retrieved 2 June 2014. 
  22. ^ "Roche buys IQuum". Retrieved 2 June 2014. 
  23. ^ "Roche buys experimental drug rights from Oryson". Retrieved 2 June 2014. 
  24. ^ "Roche buys Genia". Retrieved 2 June 2014. 
  25. ^ http://www.bloomberg.com/news/2014-08-24/roche-holding-agrees-to-buy-intermune-for-8-3-billion.html
  26. ^ "Roche pays 37% premium on shares for InterMune in US $8.3bn deal". San Francisco News.Net. 24 August 2014. Retrieved 24 August 2014. 
  27. ^ "Roche To Buy Biotech Firm InterMune For $8.3B". Investing.com. 
  28. ^ Corporate Crime Reporter. Corporate Crime Reporter. Retrieved on 2013-11-24.
  29. ^ a b Blowing the final whistle, The Observer, 25 November 2001
  30. ^ "Roche, Gilead End Tamiflu Feud". Red Herring. November 16, 2005. 
  31. ^ Kher, Unmesh (2005-10-19). "Why Roche Released Tamiflu". Time (Time Inc.). Retrieved 2008-05-22. 
  32. ^ "Cipla & Roche Enter Mediation Talks - Bloomberg TV India". Bloomberg TV India. 
  33. ^ Mattes, William B. (2008). "Public Consortium Efforts in Toxicogenomics". In Mendrick, Donna L.; Mattes, William B. Essential Concepts in Toxicogenomics. Methods in Molecular Biology 460. pp. 221–238. doi:10.1007/978-1-60327-048-9_11. ISBN 978-1-58829-638-2. PMID 18449490.  edit
  34. ^ "InnoMed PredTox Member Organizations". Retrieved 2008-08-25. 
  35. ^ Innovative Medicines Initiative. "IMI Call Topics 2008". IMI-GB-018v2-24042008-CallTopics.pdf. European Commission. Retrieved 2008-08-25. [dead link]

External links[edit]