Pharmaceutical company plans $220 million Indiana expansion, 80 new jobs – Indianapolis Business Journal

The German company Evonik announced Thursday that it would expand its pharmaceutical production plant in Lafayette and create 80 jobs. The company, which produces the active ingredients for the drugs, said the total investment for the project would be $220 million, with the US government funding up to $150 million through its Biomedical Advanced Research and Development Authority. .

The plant will produce lipids for mRNA therapies in the United States. Lipids are molecules that contain hydrocarbons and are the building blocks for the structure and function of living cells.

BARDA, which is a component of the US Department of Health and Human Services, promotes the advanced development of medical countermeasures to respond to 21st century health security threats.

During the pandemic, Evonik provided lipids to the Pfizer/BioNTech COVID-19 vaccine and vaccination campaigns worldwide.

“Thanks to this investment in the production of lipids, we are further strengthening our leading position in the global market and in particular strengthening our Healthcare business,” said Evonik CEO Christian Kullmann. “It supports our strategic transformation into ‘Next Generation Evonik’, bringing our customers value-added solutions with superior environmental and socio-economic profiles.”

Evonik already operates a factory in Tippecanoe County, employing 650 workers. In October 2009, Indianapolis-based Eli Lilly and Co. announced that it was selling its Tippecanoe Laboratories manufacturing facility to Evonik. The manufacturing site remained in operation with a focus on the production of active pharmaceutical ingredients.

“As a strategic partner of pharmaceutical and biotechnology companies, we use the new facility to help our customers develop nucleic acid drugs through to commercialization. These new therapies are the future,” said Thomas Riermeier, Head of Evonik’s Healthcare business. “We are also evaluating expanding our formulation services and scaling capacity, further cementing our leadership position as an end-to-end provider.”

Evonik said the new facility will enable the rapid and flexible production of a variety of lipids, which could be used to produce therapies and vaccines for current infectious diseases and a future pandemic.

Construction will begin in 2023 and the new plant will be operational in 2025.

Pending approval from Indiana Economic Development Corp.’s board of directors, IEDC will commit to investing in Evonik Corp. up to $2.1 million in the form of incentive tax credits and up to $250,000 in conditional training grants. IEDC will also offer up to $3 million from the Hoosier Business Investment Tax Credit Program based on the company’s planned capital investment in Indiana.

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