United States: On Friday, Eli Lilly revealed plans to invest USD 5.3 billion in a new manufacturing facility in Lebanon, Indiana. This investment aims to boost the production of its top-selling obesity pill, Zepbound, diabetes medication, Mounjaro, and other products.
More about the news
The requisite treatments have seen higher demand regarding what has supplied them over the past year due to this growing scarcity in America. According to the reports, this first drug maker incurred heavy manufacturing costs.
With this new commitment, the total amount of investment they plan to pour into the location could rise up to USD 9 billion, Eli Lilly.
That would be the single largest manufacturing bet ever by the Indianapolis-based drugmaker in its history dating close to 150-years, as its chief executive officer, David Ricks noted as quoted by CNBC.
Current plans have Lebanon plant aiming for the target of starting production of medicine end of 2026 and increasing its capacity up to 2028. It unveiled the location of several new facilities in Indiana to construct in 2022.
The plant will define the production capability of Eli Lilly in relation to the active pharmaceutical ingredient, that is tirzepatide, that is included in zepbound and mounjaro.
This is because the company refers to those treatments as incretin drugs that are hormones present in the gut and are known as hormones needed to regulate one’s feeling of fullness and level of blood sugar.
More about Eli Lilly’s expansion program
Ricks made a statement, “This multi-site campus will make our latest medicines, including Zepbound and Mounjaro, support pipeline growth and leverage the latest technology and automation for maximum efficiency, safety and quality control,” as CNBC reported.
According to Eli Lilly, the site will employ 900 people, including engineers, scientists, operating personnel, and lab technicians, once operational.
Since 2020, Eli Lilly has spent over $18 billion on building, expanding, and acquiring production units in the US and Europe.
The Chief Financial Officer Anat Ashkenazi stated while speaking to investors on an earnings call last month that Eli Lilly has various manufacturing sites either “ramping up or under construction,” as CNBC reported.
Investors showed happiness after Eli Lilly ramped up its full-year revenue outlook by USD 2 billion, and hiking of the production of Zepbound, Mounjaro and other incretin drugs for the rest of the year.
Ashkenazi stated during the call, “Now that we’re four months into the year, we have greater visibility into these nodes of capacity and feel more confident.”