Roche announced on June 26, 2012, that it will be closing its R&D site in Nutley, New Jersey, eliminating approximately 1000 positions. The action is being taken to streamline research activities and to reallocate resources to support programs in early clinical development. According to the company press release, the reorganization will enable Roche to keep R&D costs stable despite a strong increase in the number of clinical development projects in the last 18 months. The company plans to complete the transfer of business operations in Nutley by the end of 2013. Roche’s Genentech division, based in South San Francisco, California, will not be affected by the reorganization.

The site closure will be partially offset by the establishment of a Pharmaceuticals Translational Clinical Research Center on the east coast of the US, which is expected to employ approximately 240 people. The center will support US-based clinical trials and early development programs, support and maintain Roche interactions with FDA, and enhance Roche’s collaborations with US-based partners, such as academic institutions and biotech companies. R&D activities at the Nutley site will be transferred to sites in Switzerland and Germany, which are expected to gain 80 positions.