Genentech Expanding Its Calif. Factory

As the Bachman-Turner Overdrive song “Taking Care of Business” blared in the background, Gov. Arnold Schwarzenegger broke ground Thursday for a planned addition to a Genentech Inc. factory here and praised the company for expanding in California.

The $600-million project will double the size of Genentech’s existing plant, and employment is expected eventually to exceed 1,000 from the current 580. When construction is completed in 2009, the facility will be the largest biotech drug factory in the world.

Schwarzenegger called Genentech’s decision “a huge win” for the state. The company is one of the biggest biotechnology companies in the world, with annual sales of $3.3 billion.

“We are proud to announce today that Genentech is expanding its reach around the globe by expanding right here in Vacaville, Calif.,” Schwarzenegger said.

Scores of Genentech employees wearing yellow construction hats filled a large tent near the site to listen to company executives and the governor.

“We need responsible economic development incentives to allow biotech companies to make investments in California, instead of other states,” said Susan Desmond-Hellmann, president of product development for Genentech.

Genentech, which is based in South San Francisco, considered building a factory elsewhere but decided instead to expand in Vacaville, where it owns 100 acres of land, spokeswoman Amy Gartner said.

Since last spring, Genentech has received government approval to market three biotech drugs, including the much-anticipated Avastin for colon cancer. The medications are produced in living cells grown in large fermentation tanks, similar to the sort used to make beer.

Genentech currently makes Xolair, an asthma drug, and two cancer medications, Herceptin and Rituxan, in Vacaville. The company is preparing to make Avastin here as well. There are no specific plans for the new capacity, Gartner said.

Genentech shares rose $3.08 to $108.90 on the New York Stock Exchange.

*

Gellene reported from Los Angeles and Nicholas from Vacaville.