On Friday, U.S. pharmaceuticals giant Eli Lilly announced plans to invest $2.5 billion (€2.3 billion) to construct its first German facility in the western town of Alzey as the industry races to keep up with rising demand for new diabetes and obesity medications.
The company released a statement announcing that it will begin production of diabetic medications and associated injectable pens at the new location in 2027.
It intends to "support an increased demand for Lilly's medicines, including its diabetes and obesity portfolio," said the company.
On Friday, a source informed Reuters that Mounjaro, a promising diabetic medicine, which recently received authorization in the United States for off-label weight reduction, will be among the therapies to be manufactured.
Both Eli Lilly and its Danish competitor Novo Nordisk are in a battle to capture the future worldwide market for anti-obesity therapies, which is projected to be worth $100 billion. According to Novo, production levels are woefully inadequate.
After the recent coronavirus epidemic showed the fragility of global supply networks, pharma companies like Lilly are becoming increasingly responsive to political pressure to produce vital healthcare items closer to the markets they service.
Health Minister Karl Lauterbach praised the investment, saying it will help Germany become a more competitive pharmaceutical hub.
"By doing that, we will secure fast access to new therapy options and reduce dependency on fragile supply chains," according to him.
After receiving market authorization from the European Union's medicines agency, it is expected that Mounjaro will also be granted market clearance in the United States for weight reduction.
However, under German legislation, the national health insurance program is not allowed to cover any medications that aid in weight reduction. Non-diabetic people with a prescription for weight loss will likely have to pay for Mounjaro out of their own wallets.
At a news conference on Friday, Health Minister Lauterbach stated there were no plans to reevaluate the regulations in question. Over the previous three years, Lilly reported investing over $11 billion in worldwide production.
The business plans to invest over $8 billion in Indiana, North Carolina, and Limerick, Ireland, over the next few years as part of its continued development, as reported in the third quarter.
