Announcement on Friday?
US pharmaceutical company plans new plant in Germany
November 16, 2023, 7:27 a.m
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The pharmaceutical company Lilly invites you to a prominent press conference in Berlin on Friday. Then it could be announced what insiders report: a new production facility is to be built in Germany. However, there should be a big difference to other major investments.
According to insiders, the US pharmaceutical giant Lilly is about to make a billion-dollar investment in Germany. A new factory is planned in Rhineland-Palatinate, as the Reuters news agency learned from several people familiar with the matter. In contrast to other large-scale projects, such as chip manufacturers in East Germany, Lilly operates without public subsidies and therefore without German tax money. “It’s an investment in the single-digit billion range,” said an insider. Many highly qualified specialists would be needed for this. A spokesman for Lilly in Germany declined to comment.
However, the company has invited people to a press conference in Berlin on Friday, which will also be attended by Vice Chancellor and Federal Minister of Economics Robert Habeck and Health Minister Karl Lauterbach. At the meeting, Lilly says it wants to announce “far-reaching investment projects” in Germany.
The US pharmaceutical giant has been active in the Federal Republic of Germany since 1960 and has over 1,000 employees here. According to the group, sales in Germany in 2022 were 905 million euros. At around $580 billion, Lilly is the most valuable listed healthcare company in the world. The US Food and Drug Administration (FDA) recently approved Lilly’s weight loss injection Zepbound, paving the way for even higher demand. The drug with the active ingredient tirzepatide had been approved for diabetes since 2022 under the name Mounjaro. However, it has not yet been able to be used directly for obesity in the United States.
The federal government wants to become more independent when it comes to pharmaceutical products
The investment in Germany would also be a success for the federal government, which has long been trying to attract pharmaceutical companies to settle there. Minister Lauterbach wants to accelerate clinical studies with a so-called medical research law. Other measures are also intended to improve the environment for pharmaceutical manufacturers in Germany. Lilly’s plan shows that Germany is not as unattractive a location as some people think, said an insider. Elsewhere it was said: “This will trigger follow-on investments by other companies at the location.”
In the past there were large investments, especially in East Germany – but always with a significant dowry from the public sector. Most recently, major investors such as the electric car manufacturer Tesla were drawn to Brandenburg. The US chip giant Intel is building a factory in Magdeburg and the Taiwanese chip company TSMC is building a new semiconductor factory in Dresden together with partner companies.