Lilly preserves biomanfacturing network amid $500m cost-saving restructure

By Dan Stanton contact

- Last updated on GMT

Image: iStock/BrianAJackson
Image: iStock/BrianAJackson

Related tags: Boehringer ingelheim

Eli Lilly has announced a restructuring plan which will cut around 3,500 jobs but biomanufacturing will remain largely unaffected.

The restructuring plan announced yesterday hopes to save Lilly around $500m (€415m) a year by reducing fixed costs, and will affect a number of its global facilities along with 3,500 jobs – around 9% of its global workforce.

According to Lilly spokeswoman Lauren Zierke, the sites earmarked for closure will be mostly R&D while manufacturing – especially in more ‘innovative’ areas such as biologics – mostly escapes the cuts.

“The Lilly Bridgewater site, which consists primarily of clinical and product development and biometrics roles,”​ will close, she told us, as will “the Lilly China Research and Development Center (LCRDC), which focuses primarily on preclinical diabetes research and some oncology research.”

An animal vaccines facility in Larchwood, Iowa is also earmarked for closure with operations set to move to the nearby Ft. Dodge vaccine site – bought from Boehringer Ingelheim Vetmedica in 2016​ – by the end of 2019.

Actions announced [yesterday] are entirely consistent with our previous actions to improve productivity and add jobs in key priority areas. Like any innovation company, we must regularly reduce in some areas to invest in other priorities.”

Recent investments made in Lilly’s biomanufacturing network will continue to advance, including a planned three-story facility​ at its site in Kinsale, Ireland housing an additional production line which is expected to require up to 130 additional staff by 2020.

The expansion had been subject to media rumours saying it had been placed on hold ahead of proposed changes to US tax laws which would have made pharmaceutical imports more expensive, but the project got the go-ahead in June.

Lilly also dedicated a $140m insulin cartridge production facility at its site in Indianapolis, Indiana in March​, and pledged it would be spending a further $710m across its US network this year.

Related topics: Upstream Processing, Pipelines, Facilities

Related news

Show more

Related products

show more

Featured eBook: Complex Protein Production

Featured eBook: Complex Protein Production

Catalent Pharma Solutions | 06-Mar-2018 | Technical / White Paper

Download the eBook written by Catalent experts to learn about innovative products and techniques for scale-up of complex biologics, get optimal cell culture...


Inline diafiltration enables continuous processing

Pall Life Sciences | 13-Feb-2018 | Application Note

The Cadence inline diafiltration (ILDF) device is designed for continuous processing, in-process buffer exchange or contaminant removal in various processes...

Discover Fast and Simple Water Intrusion Testing

Discover Fast and Simple Water Intrusion Testing

Pall Life Sciences | 13-Nov-2017 | Application Note

At Pall we have supported the water intrusion test for more than 20 years and we developed the Palltronic® AquaWIT IV system to deliver fast and simple...

Think all buffer filters are the same?

Think all buffer filters are the same?

Pall Life Sciences | 01-Nov-2017 | Application Note

Pall’s Supor ® buffer filters are designed for high flow rates and rapid microbial removal. This can mean dramatic reductions in buffer handling costs...

Related suppliers