Breaking news from the Contra Costa Times:

BERKELEY — Bayer HealthCare announced Wednesday it will invest more than $100 million to upgrade and improve its manufacturing capabilities here, a decision that dispels fears the pharmaceutical giant would exit this city.

The decision by Bayer HealthCare to manufacture future versions of its hemophilia drug Kogenate isn’t just about the patients.

It’s also a major relief for Berkeley and Oakland. Earlier this year, Bayer hinted it was considering a move out of Berkeley.

This is the largest investment ever made by Bayer on the Berkeley site, said Joerg Heidrich, head of Bayer HealthCare’s product supply biotech organization.
“I’m very pleased and excited to invest more than $100 million in the Berkeley site to manufacture a new process for hemophiliacs,” Heidrich said.

Berkeley’s largest private employer will seek to expand its facility, giving a boost to both the Bay Area and the East Bay. With 1,300 employees on the 43-acre campus, Bayer is the second-largest biotech employer in the Bay Area behind Roche/Genentech.

Officials in Berkeley’s economic development department said Bayer will have to spend $100 million to retool its labs to start making the new drug.

If the Berkeley City Council and the state of California approve the expansion of an enterprise zone that includes Oakland and Berkeley, Bayer will benefit from $13.6 million in tax credits.

The city council is due to take up the enterprise zone issue next Tuesday.