Lilly expands manufacturing footprint in Ireland with $1.8 billion investment

Rhea-AI Summary

Eli Lilly and Company (NYSE: LLY) announced a $1 billion expansion of its manufacturing site in Limerick, Ireland, dedicated to producing biologic active ingredients for Alzheimer's treatments. Additionally, Lilly unveiled a new $800 million facility in Kinsale, Ireland, operational since last year to meet the high demand for diabetes and obesity medications. This expansion is part of a larger $20 billion investment plan initiated since 2020.

The Limerick site will employ 450 highly skilled workers and utilize advanced technologies such as AI and machine learning. Production is expected to start in 2026, pending planning approval. The Kinsale facility integrates continuous manufacturing technology and recently won the 'Facility of the Year' Innovation award.

Lilly emphasizes sustainability, with the Limerick site designed to reduce energy, water, and waste, and the Kinsale site powered by the largest privately owned solar farm in Ireland.

Positive

• Lilly announced a $1 billion expansion in Limerick, increasing its total investment to $2 billion.
• The $800 million Kinsale facility began making medicines last year to meet significant demand.
• Limerick site will create 150 new jobs, total employment reaching 450.
• Lilly has committed over $20 billion for global manufacturing expansion since 2020.
• Limerick site will employ advanced technologies like AI, enhancing production efficiency.
• Kinsale facility won 'Facility of the Year' Innovation award.
• Limerick site will operate with 35% lower energy intensity, 40% less water use, and 15% less waste.

Negative

• None.

Financial Analyst

This $1.8 billion investment in Ireland is a significant move for Lilly, demonstrating strong confidence in its future growth prospects. The expansion in Limerick, doubling to $2 billion and the new $800 million facility in Kinsale are part of Lilly's $20 billion global manufacturing expansion since 2020. This aggressive capital allocation strategy suggests Lilly is positioning itself for substantial market demand, particularly in diabetes, obesity and Alzheimer's treatments.

The investment in advanced technologies like AI and automated robotics at these facilities should drive operational efficiencies and potentially improve margins. The creation of 150 high-skilled jobs in Limerick also indicates a long-term commitment to the region. Investors should note the potential for increased production capacity to translate into revenue growth, especially given Lilly's recent breakthroughs in Alzheimer's treatment and the booming market for obesity drugs.

Medical Research Analyst

Lilly's substantial investment in biologic active ingredient production, particularly for its recently approved Alzheimer's treatment, signals a strategic pivot towards high-potential therapeutic areas. The focus on Alzheimer's, diabetes and obesity aligns with growing global health concerns and market opportunities. The Limerick facility's role in producing biologic ingredients for the Alzheimer's portfolio is especially noteworthy, given the treatment options in this space.

The integration of continuous manufacturing technology for complex peptides at Kinsale is a significant advancement. This could lead to more efficient production of diabetes and obesity medications, potentially reducing costs and improving supply chain resilience. The emphasis on sustainability in these new facilities, with lower energy intensity and water usage, also aligns with increasing regulatory and market pressures for environmentally responsible manufacturing practices in the pharmaceutical industry.

Market Research Analyst

Lilly's expanded manufacturing footprint in Ireland is a strategic move to capitalize on the growing markets for Alzheimer's, diabetes and obesity treatments. The global Alzheimer's therapeutics market is projected to reach $13.7 billion by 2030, with a CAGR of 9.2%. Similarly, the obesity treatment market is expected to hit $54 billion by 2030, growing at a CAGR of 11.5%.

Lilly's investment in advanced manufacturing technologies and sustainability measures positions it well against competitors in these lucrative markets. The company's ability to scale production quickly could be a significant advantage, especially given the recent surge in demand for GLP-1 agonists for obesity. However, investors should monitor potential risks such as regulatory changes, patent expirations and the emergence of competing therapies, which could impact the long-term value of these substantial investments.

Company ups manufacturing investment in Limerick by $1 billion; unveils new $800 million Kinsale facility

New investment will enhance global medicine production, benefiting millions of patients worldwide

INDIANAPOLIS, Sept. 12, 2024 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced a $1 billion expansion of its Limerick, Ireland, manufacturing site to increase production of biologic active ingredients, including those for its recently approved treatment for early symptomatic Alzheimer's disease. The company also unveiled its new $800 million facility expansion in Kinsale, Ireland, which began making medicines last year to meet demand for Lilly's latest diabetes and obesity treatments.

This additional investment is part of the most ambitious manufacturing expansion agenda in the company's history. Since 2020, Lilly has committed more than $20 billion to build, expand and acquire manufacturing facilities in the U.S. and Europe.

"These investments will boost the production of some of our medicines, helping millions of people with diabetes, obesity and Alzheimer's disease live the healthiest lives possible," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. "We won't stop there – these state-of-the-art facilities will also be equipped to support our promising pipeline molecules of the future."

Limerick, Ireland
Once complete, Limerick will join Lilly's global manufacturing network producing the biologic active ingredients for the company's Alzheimer's disease portfolio and other biologic medicines.

"Alzheimer's disease is a devastating diagnosis for both the patient and for their loved ones, along with having a huge burden on society," said Anne E. White, executive vice president and president of Lilly Neuroscience. "The treatments we will make here in Limerick offer the potential to be able to slow the progression of the disease and make life better for millions of people around the world."

Today's announcement brings Lilly's total Limerick investment to $2 billion, doubling the investment the company announced in March 2023. Advanced technologies such as machine learning, AI and automated robotics and systems at the site will enable right-first-time execution, all in support of the safe and reliable supply of medicines. As a part of this expansion, Lilly will create another 150 jobs for highly skilled workers in Limerick such as engineers, scientists, quality assurance professionals and operations personnel, for a total of 450 employees. Lilly initially announced the Limerick site in 2022 and broke ground in March 2023. Production of biologic active ingredients for Lilly medicines is on track to start in 2026.

The Limerick investment project is subject to planning approval, and the company will submit a planning application to the Limerick City and County Council in due course.

Kinsale, Ireland
Lilly remains dedicated to addressing major global health issues, and the Kinsale facility is pivotal to maintaining the safe and reliable supply of Lilly's diabetes and obesity medications. The official opening of Lilly's Kinsale manufacturing site expansion marks the completion of the state-of-the-art project to help meet the demand for current and future treatments. The site employs a digital-first process that integrates continuous manufacturing technology to create a new manufacturing platform for creating complex peptides. This facility was recently recognized as the winner of the Innovation category in the prestigious "Facility of the Year" awards program run by the International Society of Pharmaceutical Engineers.

Ireland's skilled workforce, regulatory environment and pro-innovation government policies have contributed to Lilly's nearly fifty-year presence in the country. In parallel with our manufacturing growth, Lilly's Global Business Solutions center in Cork has quadrupled employment levels since 2019, with more than 2,000 employees expected by the end of 2024, over half of whom are working in clinical research and development.

Sustainability
Lilly has a long-standing commitment to sustainability and respecting the local environment, establishing environmental programs across all sites in Ireland to monitor the quality of the ambient air, the flora and fauna and the local marine habitat. Once completed, the Limerick site will operate with 35% lower energy intensity, use 40% less water, and generate 15% less waste than traditional biopharmaceutical manufacturing processes. In Kinsale, Lilly has the single largest privately owned solar farm – 26 acres – in the Republic of Ireland, which powers a significant portion of the facility.

About Lilly 
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help more than 51 million people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram and LinkedIn. C-LLY

This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about planned capital investments in manufacturing sites and reflects Lilly's current beliefs and expectations. There are substantial risks and uncertainties in the manufacturing process, development, and commercialization of pharmaceutical products which could impact the overall commercial success of our products. For further discussion of risks and uncertainties relevant to Lilly's business that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Refer to:	Carla Cox; cox_carla@lilly.com; +1 317-750-3923
	Joe Fletcher; jfletcher@lilly.com; +1 317-296-2884

 

 

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SOURCE Eli Lilly and Company

FAQ

What recent investment did Eli Lilly (LLY) announce for its Limerick site?

Eli Lilly announced a $1 billion expansion of its Limerick, Ireland, manufacturing site.

How much is Eli Lilly (LLY) investing in its new Kinsale facility?

Eli Lilly is investing $800 million in its new Kinsale, Ireland, facility.

What is the purpose of Eli Lilly's (LLY) $1 billion investment in Limerick?

The $1 billion investment aims to increase production of biologic active ingredients, including those for Alzheimer's treatments.

When will the Limerick site of Eli Lilly (LLY) start production?

Production at the Limerick site is expected to start in 2026, pending planning approval.

How many new jobs will Eli Lilly (LLY) create at its Limerick site?

Eli Lilly will create 150 new jobs, bringing the total employment at the Limerick site to 450.

What are the sustainability features of Eli Lilly's (LLY) Limerick site?

The Limerick site will operate with 35% lower energy intensity, 40% less water use, and 15% less waste than traditional processes.