Eli Lilly Funds $1.8 bln in Ireland sites to boost obesity drug production

Eli Lilly announced that it will invest $1.8 billion in two manufacturing facilities in Ireland to increase production of its highly popular obesity medication and a recently approved treatment for Alzheimer's disease.

The funding is a continuation of Lilly's dedication to increasing production, specifically for its popular diabetes and obesity medications, Mounjaro and Zepbound. Since 2020, the company has invested more than $20 billion to enhance its manufacturing sites in the U.S. and Europe.

The new facility in Kinsale, Ireland, where Lilly's obesity and diabetes medicines started being produced last year, received an investment of about $800 million from the company. The need for Zepbound has been greater than the available amount for the majority of the year. The remaining funds will be used to grow the drug company's site in Limerick, Ireland, where it will specialize in manufacturing active biological components for specific medications, such as those used to treat Alzheimer's.

Lilly's Alzheimer's drug was approved in the U.S. in July and is now being assessed by health regulators in Europe and the UK. Novo Nordisk, a competitor from Denmark, has also invested billions in production to increase the supply of its successful weight-loss drug Wegovy, through a large deal worth $11 billion to acquire three sites from Catalent, a contract manufacturer.

Since its launch in December, Zepbound quickly gained a market share of approximately 40 per cent in the United States. Analysts predict that with Lilly expanding its production capacity, the market may be evenly divided between Lilly and Novo Nordisk by the end of the year.