Eli Lilly Invests Billions in US Manufacturing Amid Tariff Concerns
Business and Finance
AI summaryDisplay highlights
- Eli Lilly investing $27 billion in four US manufacturing plants
- Creation of over 3,000 jobs and focus on domestic production
- Response to potential tariffs under Trump's administration
- Emphasis on self-reliance and shortening supply chains
- Generic drug makers vulnerable to tariffs due to heavy reliance on imports
360 summary
- Oral medications, unlike injectables, do not require cold-chain storage and transportation, making them more cost-effective to produce and distribute.
- Patients, especially those with needle phobias, find oral medications more appealing, potentially increasing demand for these products.
- Lilly's investment in new U.S. manufacturing plants may lead to cost savings, which could translate into competitive pricing for drugs like orforglipron in the market.
Forbes- Cellino is utilizing automated systems to generate iPSCs from patients' blood or skin cells on-site, potentially reducing costs significantly.
- The company's scalable and consistent manufacturing process aims to facilitate the development of new treatments through clinical trials and commercialization.
- CEO Sakaylen emphasizes the importance of standardized manufacturing for assessing the quality and potency of medicines in patients, highlighting the potential impact of Cellino's approach.
Forbes- Mesoblast's drug Ryoncil is the first MSC therapy approved by the FDA, targeting children with severe GVH post-stem cell transplant.
- The company plans to start commercial sales of Ryoncil this quarter, focusing on setting pricing and product shipment to hospitals.
- Mesoblast is also exploring clinical trials for adult GVH patients and potential use of stem cell products for children with severe Crohn's disease.
Forbes- Medtronic gained FDA approval for a new self-adjusting deep brain stimulation device for people with Parkinson’s disease
- The BrainSense Adaptive device works similarly to a cardiac pacemaker, but for the brain
- Approval marks the first for an adaptive deep brain stimulation device for Parkinson’s, with the largest commercial rollout of brain-computer interface technology
Forbes- Incredible Health, a healthcare hiring unicorn, is expanding its services from nurses to technicians to address the shortage in the healthcare workforce.
- The startup has successfully placed over 1 million nurses in 1,500 hospitals across the country since its launch in 2017, showcasing its rapid growth and impact in the healthcare industry.
- By testing the hiring of technicians in multiple states and planning a national rollout by year end, Incredible Health is diversifying its reach beyond hospitals to home health organizations and ambulatory care centers.
Forbes- Generic drug makers facing higher risk due to heavy reliance on imports from China and India
- US companies focusing on domestic production to mitigate potential tariff impacts
- Significant investments in manufacturing projects by pharmaceutical companies since 2020
Forbes- Lilly has invested approximately $23 billion in US manufacturing projects since 2020, focusing on boosting production capacity for its top-selling weight-loss and diabetes treatments, Zepbound and Mounjaro.
- The company's investments over the past five years, nearing $50 billion, are described as the most ambitious manufacturing expansion in its nearly 150-year history.
- Insatiable demand and supply shortfalls for Lilly's medications have driven the need for self-reliance and domestic production, especially after facing disruptions from relying on imports for active base ingredients.
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