On September 12th, Caixin reported that US pharmaceutical giant Eli Lilly and Co. announced that it will invest $1.8 billion in two production bases in Ireland to promote the production of its popular weight loss drugs, diabetes drugs, and Alzheimer's drugs. In pre-market trading, Eli Lilly's stock price rose slightly by 0.6%.

This is part of Eli Lilly's expansion plan to increase production capacity. Since 2020, the company has committed to investing over $20 billion to build and expand its manufacturing bases in the United States and Europe.

Dave Ricks, CEO of Eli Lilly and Co., recently revealed that their weight loss drug Zepbound will soon overcome the supply shortage issue. The FDA's shortage list shows that for most of this year, Eli Lilly's Zepbound for weight loss and Mounjaro for diabetes could only be supplied in limited quantities.

In a press release, Eli Lilly announced an investment of approximately $0.8 billion in a new factory in Kinsale, Ireland, which started producing drugs for the treatment of obesity and diabetes last year.

The remaining $1 billion will be used to expand Eli Lilly's factory in Limerick, Ireland, which will focus on the production of active pharmaceutical ingredients for certain drugs, including those for the treatment of Alzheimer's disease.

Edgardo Hernandez, Executive Vice President of Eli Lilly's pharmaceutical business, said these investments will increase the production of certain drugs and help millions of people with diabetes, obesity, and Alzheimer's disease live the healthiest life possible. Eli Lilly will also use the new factory to produce new drugs under development.

It is reported that the FDA approved Eli Lilly's Kisqali (donanemab) in July for the treatment of early-stage Alzheimer's disease in adults. Kisqali is currently undergoing review by regulatory agencies in Europe and the United Kingdom.

Anne White, Executive Vice President and President of Neuroscience at Eli Lilly, stated that Alzheimer's disease is a devastating blow to patients and their families, and it also brings a huge burden to society. The drugs produced at the Limerick factory may slow down the progression of this disease and make the lives of millions of people around the world better.

In May, Eli Lilly announced an additional investment of $5.3 billion to expand the production capacity of its manufacturing base in Boone County, Lebanon, Indiana.

Meanwhile, Eli Lilly's competitor Novo Nordisk is also expanding production. In February, the company spent $11 billion to acquire three filling factories that originally belonged to Catalent for the production of the weight loss drug Wegovy and its diabetes drug Ozempic.

Since the launch of Zeposia in December last year, Eli Lilly has quickly captured about 40% of the market share in the United States. Analysts believe that with Eli Lilly's expansion of production capacity, by the end of this year, Eli Lilly and Novo Nordisk's market share may be evenly matched.

Some analysts predict that the market size of new weight loss drugs could reach $150 billion annually by the early 2030s.

Editor/Lambor