The move strengthens Evonik’s capabilities to manufacture increasing complex APIs at its site in Lafayette, Indiana.
Specialty chemicals company Evonik is investing $100 million over the next five years to upgrade its drug substance contract manufacturing site in Lafayette, Indiana, US, particularly its key equipment.
The investment at Tippecanoe Labs will support an upgrade of large reactors and other critical systems - enhancing reliability, enabling greater automation and improving ergonomics and efficiency.
This decision, according to Evonik, is largely driven by two key factors: the increasing complexity of active pharmaceutical ingredients (APIs) and the ongoing global geopolitical uncertainty. “Strengthening regional production for critical drug substances and delivery technologies” will help in staying competitive and resilient in this evolving landscape.
Daniel Fricker, Head of the Drug Substance product line at Evonik Health Care noted that with increasing API complexity, “this investment empowers us to work with our customers on even more challenging molecules for critical indications, such as cancer and metabolic and cardiovascular diseases.”
Guido Skudlarek, Head of the Health Care business line at Evonik, said: “Strengthening our US drug substance business is a strategic necessity. With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint.”
Strengthening our US drug substance business is a strategic necessity. With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint”
Guido Skudlarek, Head of the Health Care business line at Evonik
The upgrade will focus on next-generation technologies to “help preserve technology leadership and enhance energy-efficient processes”. The site is one of the world’s largest facilities for API production. Evonik acquired the plant from Eli Lilly and Company in 2010.
In February, Belgium firm Ardena divested its active pharmaceutical ingredient (API) site in Södertälje to Swedish life science tools company Nanologica. The Södertälje business will now operate as a wholly owned subsidiary within the Nanologica Group and will revert to its original name Syntagon.
Also capitalising on the increasing demand for CDMO services in the US is Switzerland-based CDMO Lonza. Last week, the firm announced plans to invest in its API manufacturing capabilities at its facility in Visp, Switzerland. Specifically, expanding ADC payload-linker manufacturing capacity for highly potent active pharmaceutical ingredients (HPAPIs).
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