Eli Lilly And Co LLY reportedly intends to construct a production plant in western Germany with an estimated investment of €2 billion ($2.17 billion), marking an inaugural substantial production facility in Germany and responding to the increasing pressure to localize critical healthcare manufacturing post-pandemic.
The new site, reportedly situated in Alzey, Germany, is anticipated to generate over 1,000 jobs, including roles in subcontracting and local supply chains. Reuters noted that news conferences have been scheduled in Alzey, where the plant will be built, and in Berlin on Friday.
Eli Lilly will fully finance the investment, aligning with its recent surge in demand for the diabetes drug Mounjaro, the report noted, citing people familiar with the matter.
The report hinted that the new facility might also produce diabetes medications with potential applications in treating obesity, particularly the off-label use of Mounjaro for weight loss, recently rebranded as Zepbound after gaining additional U.S. approval.
Last Friday, Novo Nordisk A/S NVO announced its plans to invest more than DKK 42 billion ($6 billion) starting in 2023 to expand existing manufacturing facilities in Kalundborg, Denmark, as the company seeks to meet the increasing demand for its popular weight-loss products and other drugs.
Price Action: LLY shares are trading at $588.60 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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