Oregon Public Broadcasting

Officials with the California drug company Genentech cut the ribbon on a new factory in Hillsboro Tuesday.

The new plant employs about 250 people and there's hope of more jobs in the future.

A couple of years ago, Genentech received permission from the Food and Drug Administration to market three new drugs.

Company leaders thought the factory south of San Francisco was too small -- and vulnerable to earthquakes -- to handle the demand. So Genentech began a nationwide search for a new location.

Executive Ian Clark says Oregon was chosen for several reasons: taxes are relatively low here; the company received Strategic Reserve Funds from the state; and there's a well-educated local population.

Ian Clark: "I can tell you that there were a number of very very attractive sites, but in the final analysis I think it was a pretty straight forward decision to come here and come to Oregon and come to Hillsboro."

Oregon has it's earthquake issues too, but the company felt the Willamette Valley was a lot safer than California.

The facility does a very basic job.

It takes medicines made in California and puts them into little bottles. But company rep Tim Moore says the need for cleanliness makes that a very involved and expensive process.

Tim Moore: "We're not filling shampoo. We're filling a life-saving drug, that is injected into human beings. Which means we have to do things right, everyday."

It also means the factory cost about $400 million to build.

For a tour, journalists and dignitaries were required to wear white coats, cloth booties and caps, and to wash and disinfect their hands.

Governor Ted Kulongoski called the opening good news.

Ted Kulongoski: "This has been a very traumatic recession. The speed of recovery is still in question. And days like this are very important, not just to me, but to the people of Oregon."

While Kulongoski and others are pleased at the arrival of a new factory, what they're really hoping is that Genentech will bring some of its research and development work to Oregon.

The area already has a cluster of biotech facilities like Oregon Health and Science University and the National Primate Research Center.

After the opening ceremony, Genentech executive Tim Moore was asked if the company might consider conducting research and development here.

Tim Moore: "Today, it isn't on the horizon."

The governor was sitting next to Moore and smiled.

But Kulongoski pointed out that other companies came here to fabricate — and stayed for the research and development.

Ted Kulongoski: "You know when Intel first came to Oregon in the last 70's it was a fab. And it actually built to what it is over a number of years. In the long term, the whole area of pharmaceuticals, the whole area of research and development. This is a great state to do that in."

The medicines of yesteryear, like asprin,  are relatively easy to manufacture using basic chemistry.

Genentech creates new medicines in a more complex process from genetically engineered copies of large, naturally occurring, molecules.

Oregon Senator, Ron Wyden, says Genentech is an innovative company.

Ron Wyden: "There are a lot of pharmaceuical companies that to a great extent are marketers. They're taking products and maybe doing a little bit to it but it's largely a me-too product."

Wyden says Genentech is not one of those companies. For proof he points to the 11,000 researchers and 11,000 employees worldwide.

Recently marketed treatments include the cancer drugs, Avastin, Tarceva and Herceptin.

The company was purchased by the Swiss pharmaceutical conglomerate, Roche, last year.