Evonik said it is making an investment to strengthen manufacturing capabilities at its Tippecanoe Labs site in Lafayette, Indiana. The site is home to one of the world's largest facilities for the production of active pharmaceutical ingredients (APIs).
Over the next five years, Evonik will invest $100 million to modernize key equipment, including large reactors and other critical systems. This upgrade positions Evonik to meet the growing demand for U.S.-based drug substance contract development and manufacturing (CDMO) services.
"Strengthening our U.S. drug substance business is a strategic necessity," said Guido Skudlarek, head of the Health Care business line at Evonik, in a statement. "With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint."
Evonik is balancing its global asset footprint across North America, Europe, and Asia, with a particular emphasis on North America for its drug substance CDMO business. The Tippecanoe site is crucial for its global CDMO network for small-molecule drug substances.
"API complexity continues to rise, and 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," said Daniel Fricker, head of the Drug Substance product line at Evonik Health Care.
Tippecanoe Labs, which Evonik acquired from the pharmaceutical company Eli Lilly in 2010, is Evonik's second-largest site in North America with more than 650 employees. In addition, various contractors assist with maintenance, logistics, catering and security.
