- Pharmaceuticals maker Eli Lilly announced it would spend $2.5 billion to build its first manufacturing facility in Germany.
- The plant will bolster the company's injectable product and device manufacturing network as demand soars for injectable weight-loss drugs.
- The site in Alzey, Germany, will be the sixth manufacturing location for Lilly in Europe.
Pharmaceuticals maker Eli Lilly (LLY) is building its first facility in Germany in response to the booming demand for weight-loss drugs.
Lilly reportedly said that it would be spending 2.3 billion euros ($2.5 billion) to construct the high-tech factory in Alzey, Germany. The drug maker noted the plant will further expand its injectable product and device manufacturing network and “support an increased demand for Lilly’s medicines, including its diabetes and obesity portfolio.”
Lilly’s injectable diabetes drug, Mounjaro, has been shown to help patients lose weight, and a second medicine, Zepbound, containing the active ingredient in Mounjaro, last week received Food and Drug Administration approval for use as a weight-loss treatment. That news sent Lilly shares to an all-time high.
With the addition of the Alzey location, Lilly will have six manufacturing sites in Europe. The company said that it has announced $11 billion in investments in its worldwide manufacturing footprint over the past three years, Reuters reported.
Shares of Eli Lilly were up modestly Friday, and have added about two-thirds to their value this year.