UPDATE: Roche Plans 780 Cut In Production Sites Headcount
January 15 2009 - 6:14AM
Dow Jones News
Swiss drugmaker Roche Holding AG (ROG.VX) plans to reduce
headcount at its production sites by 780 positions over the next
two to three years, Chief Financial Officer Erich Hunziker said
Thursday, and warned that the pharmaceutical industry won't be
immune to the effects of a worsening economic environment.
In a summary of a presentation to investors, Hunziker said this
will build on the restructuring of production sites in a program
running from 2007 to 2009, which resulted in a 1,152 headcount
reduction.
The reduction was the result of various measures taken,
including the sale and closure of factories. The overall number
also included the addition of new positions as part of a strategic
buildup.
The new program will run from 2009 to 2011.
The summary, in which Hunziker also reiterated the company's
financial targets for 2008, was posted on Roche's Web site.
Hunziker said he was confident that Roche is well positioned to
deal with the worsening economic environment.
Even in an economic downturn, demand for healthcare will
increase, but funding will become more challenging, meaning even
the pharmaceutical industry will feel the impact of deteriorating
economic growth in 2009 and beyond, he said.
"Funds available for healthcare are and will be limited,"
Hunziker said.
He was confident, however, that Roche will be able to weather
the upcoming storm, because the Swiss drugmaker has fewer drugs
facing the loss of patent protection than rivals and because
several of its key products have major growth opportunities outside
the U.S. market.
Hunziker also cited strong customer support organizations in
mature and emerging markets as a reason for why Roche was in a good
position in the current difficult economic environment.
Company Web Site: www.roche.com
-By Anita Greil, Dow Jones Newswires; +41 43 443 8044;
anita.greil@dowjones.com
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