Lilly to sell off Branchburg site as its US manufacturing plans take shape

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Eli Lilly’s global reorganisation of its manufacturing capabilities will see the pharma company step away from its Branchburg site.

The locations of four new US manufacturing sites, all of which are expected to be operational within the next five years, will soon be named but the New Jersey facility will not work alongside them, the company told European Pharmaceutical Review.

A spokesperson said: “Lilly confirms its intent to divest the Branchburg manufacturing site as part of a strategic evolution of its global manufacturing network. This decision follows a comprehensive assessment of future capacity needs and reflects our commitment to delivering next-generation modalities through the largest manufacturing expansion in Lilly’s history.”

Three of the planned new US sites will focus on active pharmaceutical ingredients (APIs), domestic production of which is an issue close to the heart of the FDA, while the fourth will expand Lilly’s global parenteral manufacturing network for future injectable therapies.

But as the company’s global manufacturing plans take shape the Branchburg facility “does not align with our long-term operational requirements”, the spokesperson told European Pharmaceutical Review.

Lilly was keen to highlight that the previously troubled facility “remains in good standing with the FDA”, despite a number of quality control issues being detected there since 2019, with manufacturing issues most recently under regulatory scrutiny in January 2024.

The company said it is looking for a buyer who will keep the Branchburg site’s current staff in place, but declined to provide any further details about potential suiters.

Digital pharma innovation

Meanwhile, Lilly has opened a new innovation site in Hyderabad that will be a hub for its digital and technology efforts as it seeks to improve the efficiency of its global operations.

Located in Gachibowli, the 220,000 square feet site will focus on areas such as artificial intelligence (AI), automation, cloud computing and software product engineering. Lilly has already recruited 100 people to work there, with headcount expected to reach 1,500 over the next few years.

Chief Information and Digital Officer Diogo Rau said: “This expansion brings together top talent in AI, data science, and engineering to build the digital foundation that will accelerate the discovery and delivery of innovative medicines.

“The city’s legacy of innovation runs deep – from establishing one of India’s first medical schools in 1846 to being among the earliest regions to adopt railways in recognition of the power of connectivity. Today, we are proud to build on that history by creating an integrated ecosystem that unites medicine, engineering and digital innovation to transform how healthcare is delivered.”