Lilly makes changes to global manufacturing operations
Eli Lilly has announced several changes to its global manufacturing operations - a US plant will be closed but the firm will invest in other parts of the US and Ireland.
Eli Lilly has announced several changes to its global manufacturing operations - a US plant will be closed but the firm will invest in other parts of the US and Ireland.
Scott Canute, Lilly's president of manufacturing operations, said that Lilly continues to expect growing worldwide demand for its insulin products and insulin delivery devices, but not at levels projected when plans for the Prince William County, Virginia, US site were put in place in 2003.
"The decision to cease construction of the Prince William County site is very difficult because of the impact on employees," said Canute.
Construction on the Prince William site will stop immediately. The company will return all economic development incentives received from state and local entities.
The estimated restructuring and asset impairment charges will be approximately US$155 to $185 million.
Lilly also announced plans to invest significantly in biotech medicines, which, pending approval, are expected to launch early in the next decade. Biotechnology-based programs and drug candidates now make up more than 30 percent of the company's drug portfolio and pipeline.
Specific biotech investments include an expansion to the company's site in Kinsale, Ireland, to manufacture active ingredients for future biotech products. In addition, Lilly will expand its Indianapolis parenteral operations so that the site can convert the biotech active ingredients made in Kinsale into their final dosage form.
Canute noted that these expansions come on the heels of the recently completed $1bn expansion of its Puerto Rico manufacturing operations (August 2006), which includes new bulk capacity for Humalog (insulin lispro [rDNA origin] injection), Lilly's first-in-class rapid acting insulin analog.