Roche Diagnostics ($RHHBY) plans to pour more than $258 million into building a new diagnostics production complex in Germany, thanks to rising demand for immunoassays of all kinds.
The investment will expand the Swiss drug giant's existing Penzberg biotechnology center, near Munich, and expectations point to opening the new building by December 2014. An added bonus: 50 new jobs. Roche says it will use the new building to broaden its production of diagnostics test and control reagents used for immunoassay testing for conditions including heart attack, heart failure, hepatitis and cancer.
The use of immunoassays in diagnostics continues to rise as personalized medicine becomes more commonplace. Roland Diggelmann, chief operating officer for Roche's diagnostics division, acknowledged as much in a statement about the investment, noting that Roche's investment will help it meet rising global demand for various immunoassays and the reagents they need.
Roche Diagnostics' investment in Germany comes as its sales of diagnostic equipment continue to soar, but the company has faced setbacks with its diabetes business unit. The company announced earlier this fall that it would eliminate 100 jobs from the sector and pursue a broad restructuring.
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