November 18, 2023: Eli Lilly, a US company that forecasts revenue of up to $33.9 billion, plans to build a $2.5 billion plant in Germany to make devices for treating diabetes and obesity.
The plant in Alzey, Rhineland-Palatinate, Germany “will further expand the company’s global parenteral (injectable) product and device manufacturing network and support an increased demand for Lilly’s medicines, including its diabetes and obesity portfolio,” according to a company statement.
Eli Lilly on November 2 reiterated its full-year revenue forecast of between $33.4 billion and $33.9 billion for the full year ending 2023.
The company has unveiled 21 treatments since 2014 and plans to start several more in the coming years.
Six in Europe
“Every investment into our manufacturing capacity around the world is a renewed commitment to patients today – and to those who may need our medicines tomorrow,” said Edgardo Hernandez, executive vice president and President, Lilly manufacturing operations.
“This state-of-the-art parenteral site with the latest technology will enable us to continue to deliver medicines with safety first and quality always around the world.”
With the planned manufacturing facility in Alzey, Lilly will operate a total of six manufacturing sites in Europe, including one in nearby Fegersheim, France.
Lilly’s ongoing investments in Europe will create operational synergies, strengthen university and government relationships, support the early-stage life science ecosystem, and diversify the growing Lilly presence in Europe.
Lilly has announced investments of more than $11 billion in its global manufacturing footprint in the past three years to help ensure the safe and reliable supply of Lilly’s innovative medicines.
The company continues to invest in the expansion of its global manufacturing to address the growth expected from potential new medicines to treat diabetes and obesity, Alzheimer’s disease, cancer and autoimmune conditions.
The company also announced an investment of up to $100 million to dramatically increase its footprint in Germany’s early-stage biotech ecosystem.
“These investments will focus on biotech and the life sciences venture capital funds – expanding Lilly’s incubator and accelerator engagements, and strengthening Lilly’s ties and activities with academic and innovation partners,” according to the statement.
$77 billion market
Growing demand for innovative treatments, combined with accommodative reimbursement policies, could help the market for weight-management medicines reach $77 billion in the next decade, according to Morgan Stanley.
Companies that came to market first have an advantage in being out front supported by enormous investments in their supply chains, making it difficult for new entrants to join the field.
Competition to take a share in this high-growth market should remain robust, Morgan Stanley stated in a report.
More than 750 million people are living with obesity, which causes 5% of deaths globally, according to World Health Organization estimates.