Lilly to boost diabetes drug production with $450M factory investment

Eli Lilly and Co. plans to build a new $2.5 billion high-tech manufacturing site in Alzey, Rhineland-Palatinate, Germany to expand its global parenteral product and device manufacturing network and support increased demand for its diabetes and obesity portfolio.

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 aims to create operational synergies and diversify its growing presence in Europe.

The site will bolster Lilly’s incretin supply when operational beginning in 2027. The site will employ up to 1,000 highly skilled workers such as engineers, operators and scientists, who will leverage state-of-the-art technology, including automation and high-speed manufacturing lines. Lilly’s investment in Alzey is contingent upon finalization of government permitting and local approvals.

“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.”

The company is also investing as much as $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 and activities with academic and innovation partners. Lilly will pursue strategic partnerships and collaborations utilizing a variety of business models, including capital and equity investments; world-class lab space; and R&D capabilities and expertise to help accelerate innovative medicines.