professionalpokertable| The supply of "weight-loss medicine" exceeds demand! Lilly adds $5.3 billion to expand production capacity

Financial Associated Press, May 24 (editor Niu Zhanlin) Friday Eastern timeProfessionalpokertableLilly, an American pharmaceutical giant, announced that it will invest an additional $5.3 billion to expand its manufacturing base in Lebanon in Boone County, Indiana, to meet market demand for weight loss drug Zepbound and diabetes drug Mounjaro.

Over the past year, the market for new weight-loss drugs has continued to be hot, and the products of the two giants Novo Nord and Lilly are in short supply. A senior Eli Lilly executive recently claimed that the company may not be able to meet demand this year or even by 2025.

The new investment commitment means that Eli Lilly has invested a total of $9 billion in the production base. David Rex, CEO of Lilly, said it was the largest investment in the company's nearly 150-year history and the largest single investment in the field of synthetic active ingredients in the United States.

Lilly expects the new plant in Indiana to start producing drugs by the end of 2026 and to expand operations by 2028. The company first announced plans to build a new plant in the Lebanese area of Indiana in 2022.

It is reported that when the plant is fully operational, the number of full-time employees (engineers, scientists, operators and laboratory technicians) is expected to reach 900. More than 5000 construction jobs will be created during the construction of the factory.

The new plant will mainly produce tirzepatide, the active ingredient of Zepbound and Mounjaro, a drug called GLP-1, which works by suppressing appetite and delaying stomach emptying to lose weight, and patients lose an average of 15% of their weight after use.

Last November, the US Food and Drug Administration (FDA) approved Lilly's Tirzepatide injection, called Zepbound, for weight loss. In addition, in May last year, FDA approved tieropeptide for the treatment of type 2 diabetes, a drug called Mounjaro.

Full-line production expansion

Rex said that the new plant will comprehensively increase the capacity of Zepbound and Mounjaro, support the growth of the product line, and use the latest technology and automation to achieve maximum efficiency, safety and quality control.

More importantly, he added, Eli Lilly's investment in Indiana has created high-paying, advanced manufacturing, engineering and scientific jobs for hundreds of current and future Indiana families.

Since 2020, Lilly has spent more than $18 billion to develop new production sites in the United States and Europe. Anat Ashkenazi, Lilly's chief financial officer, told investors on an earnings call last month that several of Lilly's production sites were "accelerating or under construction".

At the beginning of last month, Eli Lilly launched the construction of the Altsai factory in Germany, which will be officially operational in 2027 and will be sold to countries around the world. It will become its sixth production base in Europe.

Meanwhile, rival Novo Nord is ramping up production, buying three bottling plants formerly owned by Conterent for $11 billion in February to produce the weight-loss drug Wegovy and its diabetes drug Ozempic. However, the three plants will not be able to help Novo Nord increase production capacity until 2026.

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