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