Eli Lilly Breaks Ground on $2.5 Billion German Plant for Weight-Loss Drug Production with Chancellor Scholz in Attendance

　　Cailian Press, April 9 (Editor Niuzhan Lin)American pharmaceutical giantEli LillyEli Lilly and Company launched the construction of a new plant on Monday, hoping to accelerate the production and sales of its weight-loss drug through this base. Currently, the company's weight-loss drug Zepbound and diabetes medication Mounjaro are still in short supply.

The new factory, located in Alzey, western Germany, was announced by Eli Lilly at the groundbreaking ceremony to officially commence operations in 2027. The products manufactured will be distributed globally, and it will become the company's sixth production base in Europe.

Eli Lilly and Company Chairman and CEO Dave Ricks stated, "This significant investment underscores our ongoing commitment to patients. The high-tech production facility in Alzey will help us continue to deliver reliable, safe, and high-quality medicines. We also appreciate the strong support from the German government for this project."

Ricks pointed out that the Albert Zai area is developing into a "leading biotechnology cluster" and will become the cradle of innovative drugs in Germany. The infrastructure and workforce here were also key factors in Eli Lilly's decision to invest.

German Chancellor Scholz also attended the event, stating that Eli Lilly's investment is the largest in Germany's pharmaceutical industry in decades, and further investments will follow, creating more than 1,000 high-quality jobs.

Malu Dreyer, the Minister-President of Rhineland-Palatinate, also praised the project, stating that the construction of Eli Lilly's new high-tech manufacturing plant is "a milestone in the development of Germany's biotechnology and business," and will also strengthen Rhineland-Palatinate's position as a pharmaceutical and biotechnology hub.

Unlike other foreign technology companies' investments, Eli Lilly's plant did not receive subsidies from the German government.IntelTwo chip factories are planned to be built in Magdeburg, eastern Germany. The construction cost of the project will be around 30 billion euros and will receive a total of 10 billion euros (equivalent to 10.59 billion US dollars) in subsidies from the German government. Eli Lilly explained that the reason for giving up the subsidy was to avoid political influence when choosing the location.

Notably, more than 200 farmers also gathered near the factory to protest that day. However, their protest was against Olaf Scholz's tariff policy on Ukrainian agricultural products, not related to Eli Lilly's new factory construction.

According to previous reports, Eli Lilly and Company plans to invest $2.5 billion to build a high-tech production base in Alzey, Germany. This investment by Eli Lilly will create at least 1,000 jobs, primarily for the production of injection pen components and active pharmaceutical ingredients for the company's weight-loss drugs.

In recent years, the popularity of weight-loss drugs has surged dramatically, making it difficult for pharmaceutical manufacturers to meet the overwhelming demand. These companies have stated that they are ramping up production, but it remains unclear how long it will take to resolve these issues. Shortly after the launch of Zepbound, executives at Eli Lilly and Company indicated that market demand may not be met in 2024.

Just last week, the U.S. Food and Drug Administration (FDA) issued a notice to remind consumers that Eli Lilly and Company's Zepbound and Mounjaro were in short supply in April, and some patients might encounter difficulties when filling prescriptions at pharmacies.