Fears over Roche future

More than 325 permanent and contract workers at a Clarecastle pharmaceutical plant are on tenterhooks this week amid fears a decision about a possible closure will be made next week.

 

Concern has been expressed that the Roche Group is preparing to close one of its two manufacturing plants in Clarecastle or in Florence, South Carolina, following the recent withdrawal of the drug Dalcetrapib from expensive clinical trials.

An investment in the Clarecastle pharmaceutical plant, estimated to be worth €45 million, was pulled after poor results in a late-stage trial of the new heart disease drug.

The suspension of the drug was regarded as a major setback for Swiss drugmaker Roche, which employs about 225 permanent and between 100 and 200 people on contract at its Clarecastle plant.
It was also a huge blow for the Clare and Mid-West economy, with the loss of at least 50 new permanent jobs and over 100 temporary construction and engineering jobs over a two-year period.

However, now there are fears the loss of this drug has placed a serious question mark over the future viability of the Clarecastle plant, which has been in operation since 1977. About 29 employees opted for a voluntary redundancy package last year.

A staff meeting took place recently, during which Sven Hauptmann, managing director of Roche Ireland, informed staff the company would assess the impact of the Dacetrapib decision on the manufacturing site.

A company spokeswoman told The Clare Champion the company is in the middle of this process.  “Once concluded, the outcome of the review will be shared with employees in the first instance,” she said.

Deputy Joe Carey stressed Roche Ireland is a hugely important aspect of the economy in Clare and has expressed hope the longstanding contribution by the plant in Clarecastle to the fortunes of Roche Corporation will be recognised.Since the decision to withdraw the clinical trials for  Dalcetrapib, Deputy Carey has liased with management, unions, workers, Enterprise Minister Richard Bruton and the IDA.

Deputy Carey said the decision to suspend clinical trials of the cholesterol drug was a major blow to Roche Ireland in Clarecastle. The company had been developing the drug for nearly five years and invested an estimated $1 billion in trying to bring it to market. Much preparation had taken place at the plant in Clarecastle to lay the groundwork for the anticipated manufacture of the drug on-site.

“I understand a decision by the Roche Corporation will be made next week regarding the impact of the decision to permanently suspend clinical trials of the new drug.

“The Clarecastle facility is a leading player in the Roche operation and I am aware that the team in Clarecastle has made a very strong presentation to senior executives in the Roche Corporation in the last few weeks. Retaining these high-quality jobs and this excellent employer is hugely important for the local region, in terms of employment and the wider local economy. Roche Ireland is also very involved in the local community through sponsorship of sporting organisations and community events and has become part of the fabric of the local community.

“The Clarecastle facility is a leading player in the Roche operation with sole production of the transplant drug Cellcept, which is preforming quiet strongly along with three other drugs. Over the years, Roche Ireland has had peaks and troughs but the Clarecastle plant has often been spoken well of in terms of its place within the global Roche operation. This is thanks in no small part to its dedicated and highly skilled workforce and its ability to adapt to and respond to market needs. The company has been a good employer and I hope they continue that tradition in the years ahead,” he said.

Minister Bruton said it is too early to say what impact this decision will have on the Clarecastle site. “I understand that IDA Ireland has had discussions with the head of the Small Molecule Division for Roche in Basel, Switzerland and the IDA assures me it will continue to liase closely with the company in relation to the future of the site. I have asked IDA to keep me informed of developments,” he added.

Ennis Chamber chief executive officer, Rita McInerney, said Roche Ireland had a very good reputation and was very hopeful it could negotiate a restructuring package for its Clarecastle plant, if necessary, to safeguard its future viability.