Evonik strengthens exclusive synthesis business in US
German industrials group Evonik Industries has agreed to acquire Eli Lilly's Tippecanoe Laboratories manufacturing facility in Lafayette, Indiana, for an undisclosed sum.
German industrials group Evonik Industries has agreed to acquire Eli Lilly's Tippecanoe Laboratories manufacturing facility in Lafayette, Indiana, for an undisclosed sum.
The site, which employs about 700 people, manufactures APIs and precursor materials and will be fully integrated into Evonik's global network. The transaction is expected to close by the end of the year, pending approvals from regulatory agencies.
In addition to the acquisition of the site, Evonik and Lilly will also enter into a nine-year supplier agreement for APIs and intermediates.
"The acquisition of Tippecanoe Laboratories enables us to meet the growing demand for intermediates and active pharmaceutical ingredients and substantially boosts our global exclusive synthesis business," said Dr Klaus Engel, ceo of Evonik Industries.
The sale of Tippecanoe Laboratories is the culmination of Lilly's strategic review of the site that was announced in July 2008. The decision is based upon a projected decline in utilisation of the site due to several factors, including upcoming patent expirations on certain medicines made at the site, Lilly's strategic decision to purchase, rather than manufacture, many late-stage chemical intermediates, and the evolution of the Lilly pipeline toward more biotechnology medicines.
