LONDON: Eli Lilly is investing $1.8 billion in two manufacturing sites in Ireland to boost production of its wildly popular obesity drug and a newly approved treatment for Alzheimer’s, the drugmaker said on Thursday.
These investments are part of Lilly’s ongoing commitment to product expansion, particularly for its best-selling diabetes and obesity drugs, Maunjaro and Zepbound, respectively.
The company has committed more than $20 billion to build and expand its manufacturing facilities in the US and Europe by 2020.
The company said it invested about $800 million in its new facility in Kinsale, Ireland, which began manufacturing Lilly’s obesity and diabetes drugs last year. Demand for Zeppbound has outstripped supply for most of this year.
The rest of the investment will go toward expanding the drugmaker’s facility in Limerick, Ireland, which will focus on the production of active biological ingredients for certain drugs, including Alzheimer’s treatments.
Lilly’s drug for Alzheimer’s received US approval in July and is currently under review with European and UK health regulators.
Danish rival Novo Nordisk has also invested billions in manufacturing to boost supplies of its popular weight-loss drug Vegovi, including an $11 billion deal to take over three sites from contract manufacturer Catalent.
In the US, Lilly quickly built nearly 40 percent market share after launching Zeppound in December. Analysts believe that as Lilly ramps up its manufacturing capacity, the market could be split roughly 50-50 between Lilly and Novo Nordisk by the end of this year.
Some analysts predict that the market for new weight loss drugs could reach $150 billion annually by the early 2030s. (Reporting by Bhanvi Satija in Bengaluru; Editing by Janan Venkataraman)
