Biotech giant Genentech said it plans to close its South San Francisco manufacturing facility, laying off 265 workers there, the company confirmed.

The drugmaker said the move was part of a long-term plan and was unrelated to the current economic downturn.

The announcement comes after the South San Francisco City Council approved the company’s 2020 plans to expand its headquarters there by up to 4.3 million square feet over the next 15 years, a long-term plan that is one of the largest in the Bay Area Area was real estate projects.

The company has previously cut 474 Bay Area-related jobs, including at its South San Francisco location in 2020.

The company said in an emailed statement it had planned for more than a decade to end production at the facility, where it has been making drugs and cancer therapies since the early 1980s.

“More than 15 years ago, we made the strategic decision to withdraw from commercial manufacturing in South San Francisco,” the statement said. “This decision was part of a thoughtful, long-term plan to focus clinical supplies manufacturing in South San Francisco, where it is co-located with our R&D organization, while commercial manufacturing moves to other locations in our global manufacturing network.”

Genentech plans to close its South San Francisco manufacturing facility and lay off about 265 employees.

Santiago Mejia/The Chronicle 2018

The company said employees leaving the company would receive severance and other financial benefits, extended health insurance and career transition services, adding: “Those wishing to remain with Genentech are eligible and encouraged to apply for other positions at our US locations, including our new commercial manufacturing facility in Oceanside, California.”

Genentech also has manufacturing facilities in Vacaville and in Hillsboro, Ore.

In 2019, the company employed about 900 people at the facility when it finalized its initial exit schedule, “most of whom have moved to other roles within the company, such as our new clinical care center in South San Francisco,” which opened last fall was opened, the company announced.

Genentech employs a total of more than 13,000 people as of 2021, with its South San Francisco headquarters including 40 buildings for research, manufacturing and other operations.

“We value and respect all of our employees and their contributions to the legacy – and future – of manufacturing here in South San Francisco. They are an integral part of our ability to get innovative medicines to those who need them, and we are committed to supporting those whose jobs have been impacted during this time,” the company said.

Reach Chase DiFeliciantonio: Chase.difeliciantonio@sfchronicle.com; Twitter: @ChaseDiFelice

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South San Francisco has given biotechnology the go-ahead to continue booming.

On Tuesday evening, the city council approved Genentech’s massive expansion plan to nearly double the headquarters’ campus by adding it to 4.3 million square feet over 15 years. The long-term plan, one of the Bay Area’s largest real estate projects, is a sign that the biotech industry will remain an area of ​​growth for a coronavirus-torn regional economy.

“It’s been a fantastic partnership and this master plan literally gives us the flexibility and space to ensure we continue to have the positive impact we have on the local community,” said Genentech CEO Alexander Hardy said in an interview before the vote.

Individual new buildings require future permits and there are no plans for immediate expansion, Hardy said. New buildings would be constructed on the company’s existing 207 hectare campus to replace parking lots or older buildings.

The company employs around 15,000 people, 10,000 of them in the Bay Area. About half have worked remotely, but many workers continue to go to laboratories, Hardy said. The company has around 700 vacancies.

“We really have a phenomenal campus. It’s such an important part of Genentech, ”he said. “Although remote working has increased, the campus will remain a really important part of Genentech’s future.”

South San Francisco city councils watch a presentation Tuesday on Genentech’s 15-year expansion plan, which they later approved.

South San Francisco

Genentech is working on 10 drugs that could potentially treat COVID-19, including Actemra. It has partnered with Regeneron to make the antibody cocktail of casirivimab and imdevimab, drugs that President Trump was given to treat his coronavirus.

Founded in 1976, Genentech pioneered the use of DNA technology to develop drugs – for example, the manufacture of synthetic insulin for the treatment of diabetes. The company is a subsidiary of the Swiss healthcare giant Roche.

As part of the expansion, Genentech will pay at least $ 30 million in city fees to fund affordable housing, and more than $ 30 million after construction is complete, and $ 15 million in transportation modernization fees. Fees include $ 1 million to finance residential units or small backyard houses managed by the nonprofit Hello Housing.

The plan was originally proposed in 2017 and required a full environmental assessment.

“This is the culmination of over three years of work,” said Mike Futrell, South San Francisco city manager, at the hearing on Tuesday.

Roland Li is a contributor to the San Francisco Chronicle. Email: roland.li@sfchronicle.com Twitter: @rolandlisf

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South San Francisco officials advocated a plan that would allow Genentech to nearly double the size of its sprawling campus, paving the way for more than 4 million square feet of further commercial development.

The South San Francisco Planning Commission unanimously recommended that council members agree to allow the crown jewel of the city’s biotech hub to significantly expand its headquarters along Oyster Point during a meeting on Thursday, October 15.

Given the plan that will ultimately have to be adopted by the South San Francisco City Council, this is testament to the company’s commitment to the community it has been in for decades. Officials praised the ambitious vision.

“I think this master plan framework will be great for the city,” said Commissioner Robert Bernardo. “It will be a great blueprint for the future.”

The revised master plan document aims to allow up to 9 million square feet of construction space on the 207-acre site along Oyster Point, which is essentially the same as the approximately 5 million-square-foot facilities currently on the 207-acre property.

The proposal presented last year continues an update process launched in 2017 – the latest in a series of revisions to the campus plan, first established in 1995. It was originally updated in 2007 when a development cap of 6 million square feet was set. In 2013 the plan was changed to make way for a 27 acre development.

Earlier discussions suggested that the latest update could accommodate 12,000 additional employees, which would mean more than double the 10,000 employees currently on the premises. However, company officials have noted that the estimate is based on a formula that assumes Genentech is creating as much as possible under the plan, and officials are not yet required to set a development plan.

If the council members approve the master plan, individual new projects or additional construction phases are proposed and reviewed as part of the public standard examination process.

In return for the officials who blessed the master plan, Genentech offered a number of community benefits through a lucrative development agreement.

Under a 15-year contract, Genentech offered South San Francisco $ 30 million for affordable housing and $ 15 million for transportation initiatives. In addition, the company would support the development of residential buildings east of Highway 101 while advocating the establishment of a parish in the area.

Biotech companies that populate the Bayshore have traditionally spoken out against building homes near their business premises. Commissioner Michele Evans expressed her appreciation for the company’s rethinking of its position on the matter.

“This has not been a good source of discussion in the past,” she said, pledging to hold Genentech accountable for its promise.

Genentech also promised to limit vehicle journeys to campus while creating new open spaces along the Bay Trail and investing heavily in public art.

Commission chairman Alan Wong admired Genentech’s partnership with the city and hoped the relationship could serve as a blueprint for other life science companies.

“I think they were not only a great partner to the city, but also a good role model for other biotech companies in the region,” he said.

Commissioner Norm Faria agreed and praised the thoughtful expansion plan proposed by a leader from the thriving local industry.

“They think about the community, they think about their growth and that’s something that is easy to support,” he said.

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Plans to nearly double the Genentech campus are set to take a step forward when officials from South San Francisco review a master vision for the biotech titan’s headquarters next week.

The South San Francisco Planning Commission is expected to review the proposed campus master plan update on Thursday, October 15, and could recommend city council approval during a scheduled meeting in December.

The revised master plan aims to enable up to 9 million square meters of construction space on the 207 hectare site along Oyster Point.

Allen Napetian, vice president and head of site services at Genentech, said the plan shows the company’s commitment to growing and staying in the city, where it has thrived for the past four decades.

“Our intent is to be here and maintain a physical presence in South San Francisco as part of this community for years to come,” he said.

The new master plan was unveiled last year and has since received reviews from officials who generally supported the direction of the company. It continues an update process launched in 2017 – the latest in a series of revisions to the campus plan, first established in 1995. It was originally updated in 2007 when a development cap of 6 million square feet was set. In 2013 the master plan was changed to make way for a 27 acre development.

Earlier discussions suggested that updating the master plan could accommodate 12,000 additional employees, which would mean more than double the 10,000 employees currently on the site.

Napetian said Genentech was not bound by these projections, however, admitting the pandemic had changed the company’s perspective on envisioning campus populations.

Despite the changes made to the workplace by COVID-19, workplace culture remains an important part of the company’s future plan, according to Napetian.

“We believe in the importance of maintaining a physical campus and presence in South San Francisco and remain committed to the long term despite short-term uncertainties,” he said.

The company has put in place a flexible policy that allows employees to work from home, which has enabled Genentech to respond quickly when health conditions are required, Napetian said.

However, he noted that the company’s lab work and other initiatives require staff to be on campus and that some staff have been on site since the shutdown.

Estimating the coronavirus threat to subside at some point, Napetian said the campus master plan takes into account housing and transportation issues that could arise as the company grows.

To this end, Genentech has made significant financial contributions to local and regional efforts to build additional affordable apartments and houses for the missing center.

Regarding mobility issues, the company urges employees to give up their vehicle for single use and choose alternative modes of transport. That commitment will continue and the company intends to offer its fleet of buses and shuttles to workers from other neighboring companies, he said.

“The master plan is something that is very important to us, and we see it as an opportunity to create a variety of opportunities to be good partners with the city, the residents and members of the community,” he said.

In a broader sense, Napetian said the company sees the plan as a means of demonstrating its commitment to staying in South San Francisco.

“South City is a special place. We have been here for about 40 years and look forward to continuing to do so and being good neighbors in the process, ”he said.

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Genentech’s growth plan to potentially double its sprawling campus in South San Francisco was finalized by city officials, cementing an expanded relationship between the biotech titan and its hometown community for years to come.

The South San Francisco City Council unanimously ratified Genentech’s updated campus master plan proposal on Tuesday, November 24th. This enabled the company to build up to 4 million additional square meters of commercial space along Oyster Point.

Mayor Rich Garbarino nodded at a lucrative package of benefits the company offered as an incentive to approve the expansion, hoping the Genentech model would be replicated by others looking to expand in South City.

“I really think the residents of South San Francisco now fully understand Genentech’s commitment and commitment to South San Francisco,” he said. “I applaud everything you’ve done.”

Councilor Mark Nagales agreed, saying he believed Genentech had set an example for others to follow.

As part of the decision, the company will be approved to expand its corporate headquarters from approximately 5 million square feet of the existing building to 9 million square feet over the next 15 years. Genentech will not expand the boundaries of its 207 acre site, but will intensify construction of its property east of Highway 101.

Company officials claim they are unsure whether they will develop fully under the new vision, but felt that the master plan update was necessary to accommodate potential growth expectations.

To make business easier, the company offered South San Francisco $ 31 million in affordable housing incentives – $ 1 million was allocated to build additional residential units. In addition, Genentech will pay $ 15 million to resolve transportation issues near campus while supporting a proposed community area across the Bayshore area.

In addition, Genentech committed to further partnerships with local schools and offered funding to improve access to open spaces and public art sponsorships across South San Francisco.

The company also backed plans to build homes east of Highway 101 – a Genentech representative noted this represented an evolving position for both the company and city officials who had previously tried to keep the area solely for commercial growth receive.

“I think we are all coming to understand that the pressures our region is facing is here,” said Sophie Martin, Genentech real estate strategy and urban planning manager. “And it is precisely the reality of the Bay Area and the economy and circumstances that really require us to look for additional housing options on the east side. And Genentech is ready to support these, provided the housing construction is transit-oriented and supported by other services. “

Martin summed up her perspective, saying she believes the housing support as well as the extensive social security package underscores the company’s commitment to preserving its heritage in South San Francisco.

“We really see the city as a great partner and are proud to continue to make it our home,” she said.

While the terms of the development agreement apparently impressed most officials, not all were completely in love. For his part, Vice Mayor Mark Addiego questioned whether investing $ 30 million in housing would make any significant difference in the city’s drive to make the community more affordable.

To clarify concerns, Addiego said that a few years ago, South San Francisco invested around $ 14 million in redevelopment funds in an affordable housing project that only yielded about 120 units. Given that construction costs have increased significantly in recent years, Addiego expressed concerns about the number of units that could fund the $ 30 million Genentech is offering.

Although Addiego’s colleagues said he was a little disappointed with the company’s involvement in housing construction, they did not join his press for additional contributions, and he eventually expressed his support for the plan.

Alternatively, Garbarino said he believes the company’s support for residential development should be commended.

“Your willingness to provide affordable housing speaks volumes and I just hope others in your industry will follow suit,” he said.

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