Benzinga - by Vandana Singh, Benzinga Editor.
On Monday, Eli Lilly and Company (NYSE:LLY) agreed to acquire a manufacturing facility from Nexus Pharmaceuticals. The deal terms were not disclosed.
The acquisition of this FDA-approved facility in Pleasant Prairie, Wisconsin, will further expand Lilly’s global parenteral (injectable) product manufacturing network and support increased demand for the company’s medicines.
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Lilly estimates that production at this facility could begin at the end of 2025.
The Pleasant Prairie facility does not provide contract manufacturing services, allowing the facility to be solely dedicated to Lilly’s manufacturing.
Eli Lilly is grappling with a supply crunch for its GLP-1 drugs Zepbound for weight loss and Mounjaro for diabetes.
According to the FDA, limited supplies of Mounjaro and Zepbound are expected through the second quarter of this year due to heightened demand.
The 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg doses of both drugs are particularly affected, while the 2.5 mg doses are available. Initially projected to be available in limited quantities through April, Mounjaro doses have been scarce since February.
Eli Lilly has injected multi-billion dollars into the new North Carolina facility to push out the medications in the market.
Edgardo Hernandez, Eli Lilly EVP & Manufacturing operations resident, says the drugs will be available from the facility to the pharmacies in January 2025 or sometime next year.
Lilly had said it anticipates limited availability in the near term but had signaled that investments in manufacturing and supply capacity would progressively increase production of its medicines throughout 2024 and beyond.
Most recently, topline results from SURMOUNT-OSA phase 3 trials of tirzepatide in obstructive sleep apnea showed that tirzepatide significantly reduced the apnea-hypopnea index compared to placebo, achieving the primary endpoints. Percentage change in AHI was a key secondary endpoint in both studies.
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Price Action: LLY shares are up 1.47% at $737.02 at the last check Monday.
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