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Lilly (LLY) to Build $2.5B Plant to Meet Increased Drug Demand
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Eli Lilly (LLY - Free Report) announced its plans to spend $2.5 billion to build its first manufacturing facility in Alzey, Rhineland-Palatinate, Germany.
Per the company, this new facility will boost global production of its parenteral (injectable) product and device manufacturing network as it expects growing demand for its marketed products, especially in the diabetes and obesity portfolio.
With the addition of this facility, Lilly will have six manufacturing facilities in Europe. Once the site is operational, the company intends to create employment for up to 1,000 highly-skilled workers.
The company is also committed to investing $100 million to increase its footprint in Germany's early-stage biotech ecosystem.
Management intends to start construction of the facility next year and expects it to be operational beginning in 2027.
Shares of Eli Lilly have surged 61.7% year to date compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
Lilly is building the manufacturing site to ensure the safe and reliable supply of Lilly's innovative medicines. Earlier this month, the FDA approved tirzepatide, under the brand name Zepbound, for chronic weight management in adults with obesity or overweight. Tirzepatide was approved by the FDA last year under the trade name Mounjaro to treat adults with type 2 diabetes mellitus (“T2DM”).
Since its launch, Mounjaro has shown an impressive initial uptake, recording $1.4 billion in revenues in third-quarter 2023.Prior to Zepbound’s approval, Mounjaro was being used off-label for weight loss. Approval of the obesity indication would help Lilly rake in billions of dollars from tirzepatidesales.
The obesity market has garnered much interest lately, ever since Novo Nordisk (NVO - Free Report) received FDA approval for Wegovy. The FDA approved the Novo Nordisk drug in 2021 for chronic weight management in adults with obesity or overweight.
Earlier this month, Novo Nordisk presented positive primary results from a late-stage study evaluating Wegovy in adults with cardiovascular disease (CVD) and overweight or obesity without diabetes. Data from the study showed Wegovy’s potential in CVD beyond the benefits of associated weight loss. Study participants who were treated with the Novo Nordisk drug delivered a statistically significant 20% risk reduction in major adverse cardiovascular events (MACE), with risk reductions demonstrated consistently across age, gender, ethnicity and starting body mass index (BMI).
The obesity market is acquiring interest from other drug makers like AstraZeneca (AZN - Free Report) and Pfizer (PFE - Free Report) . Pfizer is evaluating pipeline candidates for obesity. It is currently evaluating danuglipron in a phase II study in patients with obesity and T2DM. If this study is successful, Pfizer plans to start phase III studies by year-end.
Earlier this month, AstraZeneca announced that it has entered into an exclusive deal with Chinese private biotech Eccogene to develop the latter’s oral drug, ECC5004, for treating obesity, type-II diabetes and other cardiometabolic conditions. AZN plans to develop ECC5004 both as monotherapy and combination therapies.
With the deal, AstraZeneca will get exclusive global development and commercialization rights to Eccogene in all territories except China. In China, Eccogene and AstraZeneca have joint rights.
Image: Shutterstock
Lilly (LLY) to Build $2.5B Plant to Meet Increased Drug Demand
Eli Lilly (LLY - Free Report) announced its plans to spend $2.5 billion to build its first manufacturing facility in Alzey, Rhineland-Palatinate, Germany.
Per the company, this new facility will boost global production of its parenteral (injectable) product and device manufacturing network as it expects growing demand for its marketed products, especially in the diabetes and obesity portfolio.
With the addition of this facility, Lilly will have six manufacturing facilities in Europe. Once the site is operational, the company intends to create employment for up to 1,000 highly-skilled workers.
The company is also committed to investing $100 million to increase its footprint in Germany's early-stage biotech ecosystem.
Management intends to start construction of the facility next year and expects it to be operational beginning in 2027.
Shares of Eli Lilly have surged 61.7% year to date compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
Lilly is building the manufacturing site to ensure the safe and reliable supply of Lilly's innovative medicines. Earlier this month, the FDA approved tirzepatide, under the brand name Zepbound, for chronic weight management in adults with obesity or overweight. Tirzepatide was approved by the FDA last year under the trade name Mounjaro to treat adults with type 2 diabetes mellitus (“T2DM”).
Since its launch, Mounjaro has shown an impressive initial uptake, recording $1.4 billion in revenues in third-quarter 2023.Prior to Zepbound’s approval, Mounjaro was being used off-label for weight loss. Approval of the obesity indication would help Lilly rake in billions of dollars from tirzepatidesales.
The obesity market has garnered much interest lately, ever since Novo Nordisk (NVO - Free Report) received FDA approval for Wegovy. The FDA approved the Novo Nordisk drug in 2021 for chronic weight management in adults with obesity or overweight.
Earlier this month, Novo Nordisk presented positive primary results from a late-stage study evaluating Wegovy in adults with cardiovascular disease (CVD) and overweight or obesity without diabetes. Data from the study showed Wegovy’s potential in CVD beyond the benefits of associated weight loss. Study participants who were treated with the Novo Nordisk drug delivered a statistically significant 20% risk reduction in major adverse cardiovascular events (MACE), with risk reductions demonstrated consistently across age, gender, ethnicity and starting body mass index (BMI).
The obesity market is acquiring interest from other drug makers like AstraZeneca (AZN - Free Report) and Pfizer (PFE - Free Report) . Pfizer is evaluating pipeline candidates for obesity. It is currently evaluating danuglipron in a phase II study in patients with obesity and T2DM. If this study is successful, Pfizer plans to start phase III studies by year-end.
Earlier this month, AstraZeneca announced that it has entered into an exclusive deal with Chinese private biotech Eccogene to develop the latter’s oral drug, ECC5004, for treating obesity, type-II diabetes and other cardiometabolic conditions. AZN plans to develop ECC5004 both as monotherapy and combination therapies.
With the deal, AstraZeneca will get exclusive global development and commercialization rights to Eccogene in all territories except China. In China, Eccogene and AstraZeneca have joint rights.
Eli Lilly and Company Price
Eli Lilly and Company price | Eli Lilly and Company Quote
Zacks Rank
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.