FRANKFURT, June 9 (Reuters) – The Swiss pharmaceutical and diagnostics giant Roche (ROPC.S), opens new tab said it is sticking to its planned investments in Germany, unlike some of its competitors that have scaled back spending in the country.
The company will continue its €600 million ($692.88 million) investment in a new diagnostic production site in Penzberg, Germany, Roche told Reuters.
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This comes after U.S.-based Eli Lilly (LLY.N), opens new tab 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.
Roche said it would also now have to review its future investments in Germany carefully.
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.
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
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