Eli Lilly announces an investment of US$72 million in core business

Eli Lilly and Company has announced that it will invest US$72mn in an insulin manufacturing project at one of its Indianapolis facilities. The investment is mainly for replacing an existing insulin vial filling line and enable Lilly to meet increasing demand for its insulins – including Humalog^® (insulin lispro) and Humulin^® (human insulin) – while upgrading to state-of-the-art technology and preparing for its insulin pipeline.

Insulin is at the core of the Lilly diabetes business.

"This new project is part of US$850mn in anticipated U.S. capital investments which Lilly announced in March of this year. It reinforces our ongoing commitment to the U.S. market and in Indianapolis specifically," said David A. Ricks, Lilly’s Chairman and Chief Executive Officer. "Our company is poised for continued growth, and diabetes represents one of our key therapeutic areas. Investments such as this are vital to ensuring we continue meeting the needs of people who use our medicines."

Insulin is a core element of Lilly’s diabetes business, and its U.S. manufacturing operations are an integral part of insulin supply. Lilly has a nine decade legacy of researching and producing insulin, and the Indianapolis manufacturing facility plays a significant role in the process. Replacing the existing line will allow for the installation of a new insulin vial filling line that aligns with modern design expectations and utilises state-of-the-art technology.

"As technology and science continually advance, it is important that our manufacturing facilities are recapitalized and modernised regularly to ensure we can continue to provide a reliable supply of safe and high-quality medicines to people around the world," said Maria Crowe, President of Lilly Global Manufacturing Operations.

With a previously investment of more than US$1.2bn in 2012 to boost its U.S. diabetes product manufacturing operations, the company has invested US$5bn in its U.S. facilities over the last decade. Continued investment in U.S. is expectable, especially provided that favourable tax reform measures are enacted.

"The current U.S. tax reform proposal, developed by the White House and congressional Republicans, would cut the corporate tax rate to 20%, put in place a territorial system, and maintain tax credits for research and development. If enacted, these proposed reforms would go a long way toward levelling the playing field for American workers and businesses competing against their foreign peers," said Ricks.