US pharmaceutical group plans new plant in Germany
The pharmaceutical company Lilly is hosting a press conference in Berlin on Friday with a number of prominent guests. It could then be announced what insiders are reporting: A new production facility is to be built in Germany. However, there is to be a major difference to other major investments.
According to insiders, the US pharmaceutical giant Lilly is about to make an investment worth billions in Germany. A new factory is planned in Rhineland-Palatinate, as the news agency Reuters learned from several people familiar with the matter. In contrast to other major projects by chip manufacturers in eastern Germany, for example, Lilly will be able to manage without public subsidies and therefore without German taxpayers' money. "We are talking about an investment in the single-digit billion range," said one insider. Many highly qualified specialists would be needed for this. A spokesperson for Lilly in Germany declined to comment.
However, the company has invited to a press conference in Berlin on Friday, which will also be attended by Vice-Chancellor and Federal Minister of Economics Robert Habeck and Health Minister Karl Lauterbach. According to Lilly, it intends to announce "far-reaching investment plans" in Germany at the event.
The US pharmaceutical giant has been active in Germany since 1960 and has over 1,000 employees here. According to the Group, sales in Germany amounted to 905 million euros in 2022. At around 580 billion dollars, Lilly is the most valuable listed healthcare company in the world. The US Food and Drug Administration (FDA) recently approved Lilly's weight loss injection Zepbound, paving the way for even greater demand. The drug with the active ingredient tirzepatide had already been approved for diabetes since 2022 under the name Mounjaro. However, it could not yet be used directly for obesity in the USA.
German government wants to become more independent in pharmaceutical products
The investment in Germany would also be a success for the German government, which has been trying to attract pharmaceutical companies to the country for some time. Minister Lauterbach wants to accelerate clinical studies with a so-called Medical Research Act. Other measures are also intended to improve the environment for pharmaceutical manufacturers in Germany. Lilly's plans show that Germany is not as unattractive a location as some people think, said one insider. Another said: "This will trigger follow-up investments by other companies in the location."
In the past, there have been major investments, particularly in eastern Germany - but always with a significant contribution from the public sector. Most recently, major investors such as the e-car manufacturer Tesla were attracted to Brandenburg. The US chip giant Intel is building a plant in Magdeburg and the Taiwanese chip company TSMC is building a new semiconductor factory in Dresden together with partner companies.
At the press conference in Berlin on Friday, Robert Habeck and Karl Lauterbach are expected to attend, as Lilly plans to announce significant investment plans in Germany. The US pharmaceutical giant, which has operated in Rhineland-Palatinate since 1960, is reportedly planning to construct a new plant in the region, estimated to be worth billions, without requiring public subsidies, as Eli Lilly has confirmed neither denial nor confirmation of the news.
Source: www.ntv.de
