Eli Lilly builds plant in Alzey - Boom business with weight loss syringe
The US pharmaceutical company Eli Lilly plans to build a new plant in Rhineland-Palatinate with an investment of around 2.3 billion euros. The production facility is intended to help meet the high demand for new drugs to treat diabetes and obesity.
The site in Alzey, 30 kilometers south of Mainz, is to be built from 2024 and go into operation in 2027, Eli Lilly's Head of Production, Edgardo Hernandez, announced on Friday. The Group also wants to benefit from the booming business with delivery syringes, which has generated a lot of hype in the USA.
Up to 1000 people are to be employed at the new plant, said Hernandez. An additional 1900 jobs would be created during the construction phase. Federal Economics Minister Robert Habeck emphasized that, in contrast to planned chip factories in eastern Germany, for example, the new plant would not require taxpayers' money. Lilly's investment is one of the largest single economic decisions in Germany in this area. "It is a big exclamation mark that is being set here."
Federal Health Minister Karl Lauterbach sees the decision as a good sign for Germany as a pharmaceutical location: "This investment strengthens the Federal Government's efforts to make Germany more attractive as a pharmaceutical location."
Active in Germany since 1960
Eli Lilly, based in Indianapolis, is the most valuable pharmaceutical manufacturer in the world in terms of market capitalization. The company has been active in Germany since 1960 and last year achieved a turnover of 905 million euros with around 1000 employees.
With the planned plant, Lilly intends to expand its network of sites for injectable drugs and associated injection pens. Among other things, the diabetes drug Mounjaro is to be manufactured in Alzey, which will also be used in Europe to treat severe obesity.
In the USA, Lilly already has approval for the drug as a weight loss injection, which is marketed under the name Zepbound and competes with a similar product from the Danish company Novo Nordisk. Approval is still pending in Europe and is expected at the beginning of next year. The Group's portfolio of anti-obesity drugs is to be expanded, said Hernandez. With Alzey, Lilly will then have six production facilities in Europe.
Gold-rush mood
There is currently a gold-rush atmosphere in the slimming syringe business. Like Novo Nordisk, Lilly wants to profit from a trend, particularly in the USA: People who are often healthy and even not overweight are buying the drugs to melt away the pounds. The preparations were developed as diabetes medications, but have proven to be effective appetite suppressants. They mimic the effect of intestinal hormones and increase the feeling of satiety. Rival Novo Nordisk, which has been offering its slimming injection for some time, has already run into supply problems.
Experts see a gigantic market - because obesity is a global phenomenon. In May, Lilly CEO Dave Ricks referred to 650 million people worldwide who are already morbidly obese. According to official estimates, this figure could rise to around one billion by 2030.
Dependence on China and India
Lilly's billion-euro investment is also good news for the pharmaceutical industry. In view of drug shortages, strained supply chains and the dependence on China and India for medicines, the German government is endeavoring to strengthen production in Germany.
Germany is falling behind in international competition when it comes to clinical trials, while the industry is suffering from increased energy costs and cost pressure from politicians, warned the Association of Research-Based Pharmaceutical Companies. VFA President Han Steutel welcomed the establishment of Lilly on Friday as an "important signal for Germany as a pharmaceutical location." This could lead to further investments. However, reliable framework conditions are needed.
The settlement also increases the importance of Rhineland-Palatinate for the biotech and pharmaceutical industry. The coronavirus vaccine manufacturer Biontech is based in Mainz, while the pharmaceutical company Boehringer is based in Ingelheim. Hernandez said that a good pharmaceutical infrastructure in the region was one of the criteria for locating here. That is why there is hope of finding enough skilled workers.
The new plant by Eli Lilly, aimed at producing drugs for diabetes and obesity, will not only contribute to meeting the global demand for these treatments but also tap into the lucrative market of delivery syringes, particularly in the USA. The expansion of Lilly's network of sites for injectable drugs in Alzey will also include the manufacturing of Mounjaro, a diabetes and obesity treatment praised for its appetite-suppressing properties.
Source: www.dpa.com
