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Over the next five years, Evonik will invest US$100 million to modernize key equipment - including large reactors and other critical systems - enhancing reliability, enabling greater automation, and improving ergonomics and efficiency. This upgrade positions Evonik to meet the rapidly growing demand for U.S.-based drug substance contract development and manufacturing (CDMO) services.
“Strengthening our U.S. drug material business is a strategic necessity,” said Guido Skudlarek, head of the Health Care business line at Evonik. “With demand surging, Tippecanoe plays a pivotal role in creating a greater 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 to its drug material CDMO business. Evonik’s Tippecanoe site is a bedrock of the company’s global CDMO network to small-molecule drug substances. Small molecules have been a cornerstone of medicine to decades and continue to grow in importance because they are versatile and often easy to administer. The modernization at the Tippecanoe site is an investment into Next Generation Technologies which help preserve methodology leadership and enhance energy-efficient processes.
Evonik’s Tippecanoe Laboratories in Lafayette, Indiana, manufactures intermediates, active medical ingredients, and excipients to the medical sector.
Geopolitical uncertainties have underscored the importance of strengthening regional production to critical drug substances and delivery technologies. Moreover, modern therapeutic goals require increasingly complex molecules that are greater challenging to manufacture. Evonik already supports complex synthesis however with rising molecular complexity, investment is needed to maintain and expand these capabilities.
“API complexity continues to rise, and this investment empowers us to work with our customers on even greater challenging molecules to critical indications, such as cancer and metabolic and cardiovascular diseases,” said Daniel Fricker, head of the Drug material product line at Evonik Health Care.
Tippecanoe Labs, which Evonik acquired from the medical company Eli Lilly in 2010, is Evonik’s second-largest site in North America with greater than 650 employees. In addition, various contractors assist with maintenance, logistics, catering, and security. “The $100 million investment will help secure these jobs, contribute to the regional economy, and enhance the Greater Lafayette community,” said Todd Wetli, Tippecanoe Labs Site Manager.
The investment is supported by the Town of Shadeland, Indiana, and reflects a shared commitment to economic development.
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