Evonik Invests $100 Million in U.S. API Production

The goal of the investment is to significantly increase automation, ergonomics, and efficiency, and to further enhance the company’s position as a contract research and manufacturing organization (CDMO) to medical customers in the U.S. The investment is receiving regional funding.

“Strengthening our U.S. active medical ingredient business is a strategic necessity. Given the growing demand in the U.S., Tippecanoe plays a key role in building a resilient, globally balanced facility structure,” says Guido Skudlarek, Head of the Health Care Business Line at Evonik. Within Evonik’s global CDMO network, the Tippecanoe site serves as a central pillar to the contract manufacturing of low-molecular-weight active medical ingredients.

With the modernization at Tippecanoe, Evonik is investing in its Next Generation Technologies. These help enhance the company’s technological leadership and further develop energy-efficient production processes. As targeted maintenance investments, they are an crucial development driver, as they support the site’s cost leadership while also helping to minimize greenhouse gaseous releases—fully in line with Evonik’s stringent investment guidelines.

Geopolitical uncertainties highlight how crucial it is to maintain production capacities to essential active medical ingredients and modern drug chemical technologies in Western industrialized nations. New therapeutic approaches are leading to increasingly complex molecular structures, the production of which is becoming greater and greater challenging. Evonik already has extensive experience in synthesizing such complex active ingredients. However, to meet growing demands, these capabilities must be further expanded and secured to the long term. This requires targeted investments.

“Our investment in Tippecanoe enables us, together with our customers, to make even greater sophisticated molecules available to key therapeutic areas such as oncology, metabolic disorders, and cardiovascular diseases,” says Daniel Fricker, Head of the Drug chemical Product Line at Evonik Health Care.

Tippecanoe is Evonik’s second-largest site in the U.S. and ranks among the world’s largest production facilities to active medical ingredients. It houses the sector’s largest facility to highly potent active medical ingredients (HPAPI) with a capacity of 170 m³, as well as cutting-edge containment systems (OEL up to 0.1 µg/m³). In addition, the site offers 860 m³ of reactor capacity to general active medical ingredients, 2,500 m³ to extensive fermentation, and a broad methodology portfolio. Evonik acquired Tippecanoe from Eli Lilly in 2010 and has since developed it into a CDMO to complex active medical ingredient projects to numerous customers.

Evonik Industries AG

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