Roche-Genentech: Welcome South San Francisco to the RBA
Roche-Genentech: A Drug Powerhouse
Big Nod to GenentechSchwann intends to keep research independent. The Genentech Founders Research Center, a massive state-of-the-art complex devoted to biotech research, will operate autonomously. And in what Schwann says is a “big signal” to Genentech, Roche will move its existing commercial U.S. headquarters from Nutley, N.J., to Genentech’s base in San Francisco. The U.S. business of both companies will trade under the Genentech name, and sales and research staff will probably increase.
Wow. Wow. Wow.
New Jersey - set for fail.
South San Francisco - set for soar.
Not planning to buy in South San Francisco this year? You’ll be priced out forever next year.
July 21st, 2008 at 11:46 pm
Burbed should stick to real estate.
From another article
“The consolidation of the two companies will allow Roche to eliminate duplicate operations in areas such as administration and manufacturing. The pre-tax savings would reach $750 million to $850 million, Roche forecasts.
Humer said he does not anticipate job cuts among Genentech’s research groups or sales force.”
Guess what that means: admin, manufacturing, and clinical will have cuts. Where do you think that 750M is coming from - not just Nutley.
July 22nd, 2008 at 12:04 am
Wow wow wow is right. This is going to pull a lot more people in the BA. I don’t know about South SF, but surely north peninsula is going to get a boom. Think Burlingame, Foster City, and Millbrae.
July 22nd, 2008 at 12:05 am
Correction:
>>This is going to pull a lot more people in the BA.
should be
This is going to pull a lot more people to the BA.
July 22nd, 2008 at 12:07 am
A business like Roche is basically immune to the economy. That means even more job stability in the Bay Area. People with job stability and good income will buy houses.
July 22nd, 2008 at 1:05 am
Someone has drunk deep of the kool-aid.
July 22nd, 2008 at 1:43 am
haha, sucks for NJ!
Roche-Genentec has come to save the bay area’s declinING housing market! Thank god I read it on Burbed before this became common knowledge. Goodbye guaranteed depreciation, hello guaranteed appreciation! I’ll be scooping up as many homes as I can in the next few months before *I* get priced out forever. Only suckers get priced out forever. I’m not a sucker!
Hopefully these are not the whiney phd-types and biochemists who were screaming that fundamentals were out of wack because they couldn’t buy a house. We don’t need those people here in the bay. We need more people who _undestand_ thatproperty values do not go down here and are willing to make the sacrafices to afford a home!
Anyone smelling a biotech boom in south San Francisco? Oooh baby this is going to be sweet.
July 22nd, 2008 at 7:36 am
hey, I thought the official stance is that anyone coming from Jersey is already priced out forever…
Coming from New Jersey, how could they possibly be “special” enough for the RBA?
July 22nd, 2008 at 7:44 am
Yes, one company moving in versus the approximately 1,300 companies that leave California every single year. Why? Because taxes, environmental restraints, high employee salary demands, lease and real estate prices are prohibitive to business interests.
Sorry to say that one company moving in isn’t going to save your property values from falling more. So don’t wet your pants just yet.
July 22nd, 2008 at 8:26 am
Bob,
A company like Roche moving in is equivalent to hundreds of companies moving in. They made a smart choice, because this is where all the smart people are. Do you think money is an issue with a drug company?
July 22nd, 2008 at 8:33 am
RE,
Then how do you explain the fact that Raleigh Durahm,NC, An Arbor, MI, and Oklahoma City,OK all have larger biotech industries than the BA? By your logic, all those cities have ’smarter’ people than the BA. Hate to break it to ya, but people in the BA aren’t any smarter than people in other cities, and to some degree lack common sense, which goes hand in hand with intelligence.
Anyhow, one company isn’t going to save you from having your home’s value fall.
July 22nd, 2008 at 9:08 am
Seriously, one company CAN make a difference!
Honestly, Bob, do you really think this company is doing this reorganization to _save_ money? As RE pointed out, they are both immune to the economy and have an infinite source of money. This corporate reorg is probably a sham. While they cite saving money, its probably costing them money to do this, but they understand that they have pay a premium to do business in an area near smart RBA-type people like RE.
Some people!
July 22nd, 2008 at 9:11 am
Most people I’ve encountered who work at Genentech don’t bother with South San Francisco, they live in Palo Alto or San Ramon or Pleasanton and they take the train. They’d need to reroute the SFO flight path and invest in some new housing (besides that ghastly awful complex at the BART station) if they wanted to save us.
July 22nd, 2008 at 9:16 am
Hmmm… interesting observations Anon. You actually made me realize precisely why they decided to move here.To create a sort of fog spray that can be trucked around the BA, making it ‘immune’ from the effects of housing price declines.
In all seriousness though, NJ is almost as bad for business tax-wise as it is here. So the company is already used to operating in a higher cost environment. The interesting thing will be to see if they can get their employees to move out here.
July 22nd, 2008 at 11:41 am
You actually made me realize precisely why they decided to move here.
———–
Roche’s contract with Genentech expires on 2015. Although Roche management is talking in different tone, this is the ground reality.
From NYT
Job growth in bay area - those are all bullshit. Roche is a big fat bulky pharmaceutical company. It would be interesting to see how they maintain Genentech’s innovation-driven, less-bureaucratic, employee-friendly work culture. Forget job growth, I won’t be surprised if there is mass-exodus of R&D people after takeover.
Did somebody talk about “job stability”? I thought innovation, challenge, risk-taking-attitude - that’s what drives Silicon Valley. I must be having wrong impression about this area. Oh, I get it, there are lots of Alt-A mortgage here. Those homeowners do need job stability.
July 24th, 2008 at 7:24 pm
More good news! Huge healthcare expansion project in Palo Alto:
http://www.paloaltoonline.com/news/show_story.php?id=8796
Bay Area is going to become the health care capital of the nation!
July 24th, 2008 at 8:29 pm
Can you imagine how many doctors will need to move to the area? This is all for a good cause. Good way to support our troops!
July 24th, 2008 at 9:25 pm
sort of begs the question of what is the current capital of healthcare
July 24th, 2008 at 9:27 pm
omg the comments in that palo alto piece are funny.
July 26th, 2008 at 11:11 am
Major coverage by the San Jose Mercury on the billion dollar VA expansion project in Palo Alto / Menlo Park:
http://www.mercurynews.com/news/ci_10005405
At the same time, Stanford University Hospital is undertaking a major expansion. Of course, the Roche deal up the peninsula is pending as well.
This an unbelievably exciting time. Think of all the inflow of money on a perpetual basis. Basically, the pentagon budget is coming here! Doctors, pharmacists, nursing professionals, IT infrastructure personnel are going to all over the place.
August 6th, 2008 at 4:18 am
re: The interesting thing will be to see if they can get their employees to move out here.
the point is, Roche hasn’t being performing so well in the US, so part of the idea probably is to go for a major overhaul, not to keep the same staff.
August 6th, 2008 at 7:31 am
Re…
No offense, but the article was talking about adding a new nursing home.I guess we do need it though since the average person in the BA is getting older and older.
… and sorry to burst your bubble, but the Ba isn’t the healthcare capitol of the world either. That designation would go to Nashville,TN.
Health care is one of Nashville’s top industries; according to the Nashville Health Council, the city is known as the nation’s health care center. Twenty-one healthcare companies are based within the city; in total 350 health care companies have operations here. Many service firms specializing in the industry (including accounting, legal, and others) are based in Nashville, including 12 investment and venture capital companies dealing primarily with health care. Health care services companies based in Nashville control more than 2,400 operations outside the city, as well. In 2002, almost 90,000 people in the Nashville metro area worked in the health care industry, earning more than a $4 billion payroll.
http://www.city-data.com/us-cities/The-South/Nashville-Economy.html
August 28th, 2008 at 5:17 am
[...] said, this house is near super star Genentech - which once acquired by Roche for $200 per share, will instantly cause the RE market in South San Francisco to soar. Just think [...]