Roche Commits to €600M Investment in Germany as Rivals Scale Back Spending
Roche Maintains Investment Amid Industry Cutbacks
FRANKFURT, June 9 (Reuters) - The Swiss pharmaceutical and diagnostics giant Roche said it is sticking to its planned investments in Germany, unlike some of its competitors that have scaled back spending in the country.
Details of Roche’s €600 Million Investment
The company will continue its €600 million ($692.88 million) investment in a new diagnostic production site in Penzberg, Germany, Roche told Reuters.
Competitors’ Reduced Spending
This comes after U.S.-based Eli Lilly said it would halve its $2.3 billion investment in Germany and German drugmaker Boehringer Ingelheim scrapped its €900 million plans, both citing the government's planned healthcare cost-cutting measures.
Future Investment Considerations
Roche said it would also now have to review its future investments in Germany carefully.
Background and Economic Implications
The decision for Roche's investment in Penzberg, its largest single one in Germany, was made several years ago, with construction expected to be completed by 2027. "The cabinet decision is creating a new degree of uncertainty regarding investments, research, and production decisions in Germany," Daniel Steiners, CEO of Roche Pharma AG, told Reuters.
Government Policy and Industry Response
He added that the government risked causing significant economic damage with minimal benefit for a sustainable healthcare system, and said the parliamentary process now offered a final chance to keep Germany on a reliable path.
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(Reporting by Patricia Weiss, writing by Marleen Kaesebier, editing by Linda Pasquini)
