Eli Lilly Working with Indianapolis Officials for Proposal to Invest Added $180M in Insulin Manufacturing Ops
Eli Lilly and Company (NYSE: LLY) today announced that it is working closely with the city on a proposal to invest an additional $180 million in the company's Indianapolis-based insulin manufacturing operations. The investment is in addition to the company's November 2012 announcement of a $140 million expansion of the company's Indianapolis insulin manufacturing operations. Together, the investments would enable Lilly to meet the growing insulin demand given the rise in diabetes prevalence across the U.S.
Lilly also is proposing several other ancillary investment projects totaling about $80 million, including a $40 million product-inspection center.
The latest $180 million proposed investment is two-fold:
o Lilly would add a second insulin cartridge-filling line to the overall scope of the previously announced expansion, bringing the total to two insulin-cartridge-filling lines.
o The second piece of the investment would support Lilly's efforts to increase its insulin-active-ingredient manufacturing capacity. Designed to increase annual insulin output, this effort would help Lilly boost productivity without building a new manufacturing plant or adding to its cost structure. The project also would support Lilly's commitment to maintain the highest quality standards.
"Lilly is making significant investments to support our current portfolio of diabetes medicines," said Enrique Conterno, president of Lilly Diabetes. "We are also continuing to search for new and better treatment options. We have one of the strongest diabetes pipelines in our history--including four molecules in late-stage development--that could help support the needs of people with diabetes."
"We believe Indianapolis is a good place for this investment, as we will continue to benefit from the engaged, committed, and highly skilled work force we have in this city," said Myles O'Neill, Lilly manufacturing's senior vice president of global parenteral drug product and delivery devices.
"Lilly could have made this investment anywhere in the world, but the fact that it continues to expand in Indianapolis is a testament to the great business climate and workforce in our city," said Mayor Greg Ballard. "I want to underscore that despite challenging economic times, in the past six months, Lilly has announced proposed plans to invest more than a quarter of a billion dollars in our city and create jobs for many highly skilled people. This is great news for Indianapolis."
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.