Roche Holding Ltd. (ADR)(OTCMKTS:RHHBY) has been trending lower over the past couple of trading session after being unable to move above its 200-day moving average. The stock currently trades below all important daily moving averages, which is a cause for concern for traders. The moving averages have formed a death cross, which is a bearish signal and is pointing towards an impending downtrend. The momentum oscillators have given a sell signal pointing towards the shift of momentum towards the sell side. Traders believe the stock could head to levels of $31.5 while face resistance at levels of $33.50 on the upside.


Roche Holding Ltd. (ADR)(OTCMKTS:RHHBY) has decided to restructure its manufacturing networking completely for small molecules. Reports claim that Roche is likely to exit four sites to optimize the capacity utilization, which might affect close to 1200 positions.

The announcement was made by the company to ensure that it can revamp its manufacturing network to address the current underutilization of its products due to the fast evolving portfolio.

Insights of Announcement

Roche is also looking forward to making an investment of CHF 300 million, which will be used to strengthen the launch and development capacities for specialized medicines in Switzerland. The overall restructuring cost is likely to be around CHF 1.6 billion latest by 2021. Out of this total cost, CHF 600 million will be in cash.

The expert production team of Roche Holding Ltd. feels that a new generation of specialized medicines needs high-end novel manufacturing technologies. As part of this restructuring initiative, Roche will look forward to producing the medicines based on these technologies in lower volumes than the traditional medicines. As part of this shift in the gear, Roche is forced to exit four of its manufacturing sites located in (Clarecastle) Ireland, (Segrate) Italy, (Leganes) Spain, and (Florence) the United States.

To make sure that the impact of job cut due to this decision is minimal, Roche is actively looking for disinvestment options, which can be exercised immediately.

The company doesn’t want to compromise manufacturing capacity as well as the quality of the medicines; hence, it’s planning to invest another 300 million Swiss francs into a dedicated medicine facility located in Kaiseraugst, Switzerland. This new investment will not only help Roche with world-class technology but also help it manufacture new generations of specialized medicines.

The senior management team of the company is delighted to announce this update and hopes that it will pave the way for new growth opportunities and help it achieve desired results in the future.