Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), announced an agreement with the U.S. government that lowers costs for state Medicaid programs, encourages other wealthy countries to reward innovation, and increases opportunities for direct patient access.
Under this agreement, Genentech is making commitments that address all four priorities set forth in the President’s July 31st letter. Genentech’s commitments include making many of the company’s medicines, including those for serious and complex diseases, available as part of Medicaid for America’s most vulnerable patients at prices comparable to those available in other wealthy countries. Genentech will also expand its recently-launched direct-to-patient program for its essential flu medicines and make the program available via TrumpRx.gov.
“Today’s agreement demonstrates our ongoing commitment to enhancing access to life-changing therapeutics, so patients may benefit from our country’s long-term commitment to innovation,” said Ashley Magargee, Chief Executive Officer of Genentech. “As the proud founder of the American biotech industry, we share the goals of the administration to address prescription drug costs and reward innovation. As always, Genentech will continue to seek solutions for lowering patient costs while increasing opportunities for patient access.”
The Company recently announced a $50 billion investment in U.S. manufacturing, infrastructure, and R&D. This includes breaking ground on a new facility in Holly Springs, North Carolina and onshoring billions of dollars in research and manufacturing to the U.S. These significant investments will bolster the economy by supporting more than 11,000 jobs, including approximately 6,500 construction jobs to develop new facilities. Additionally, these investments will create up to 1,000 highly skilled jobs at new and expanded sites, adding to the more than 25,000 Genentech employees already in the U.S.
Genentech also reached an agreement with the U.S. government for a three year exemption from tariffs, further enabling Genentech’s continued investment and expansion of its manufacturing footprint in the U.S. In addition, Genentech will not be subject to future pricing mandates.
Specific terms of the agreement remain confidential.
About Genentech
Founded nearly 50 years ago, Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes medicines to treat patients with serious and life-threatening medical conditions. The company, a member of the Roche Group, has headquarters in South San Francisco, California. For additional information about the company, please visit http://www.gene.com.
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