Evonik Invests US$100 Million to Expand Indiana API CDMO Manufacturing

COMPANY PROFILE
  • Evonik will invest US$100 million over the next five years to modernize its Tippecanoe Labs site in Lafayette, Indiana, to strengthen U.S. drug substance manufacturing capabilities.
  • The investment is intended to increase automation, improve operational efficiency, and support growing demand for U.S.-based CDMO services for active pharmaceutical ingredients (APIs).

Evonik will invest US$100 million over the next five years to modernize its Tippecanoe Labs facility in Lafayette, Indiana, as part of an effort to expand its U.S. drug substance CDMO capabilities. The investment will upgrade large reactors and other critical manufacturing systems to improve reliability, increase automation, enhance ergonomics, and improve operational efficiency. According to the company, the project is designed to meet growing demand for U.S.-based contract manufacturing services for active pharmaceutical ingredients (APIs).

The Tippecanoe Labs site manufactures intermediates, APIs, and excipients for the pharmaceutical industry and is one of the world’s largest API manufacturing facilities, including a high-potency API operation. Evonik said the site is a key part of its global drug substance CDMO network for small-molecule manufacturing. The modernization is also intended to support next-generation technologies, improve energy-efficient processes, and strengthen the company’s manufacturing footprint across North America, Europe, and Asia, with a particular emphasis on North America.

“Strengthening our U.S. drug substance business is a strategic necessity. With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint.”

Guido Skudlarek, head of the Health Care business line at Evonik

Evonik said increasing geopolitical uncertainty and the growing complexity of modern drug molecules have reinforced the need for regional manufacturing capacity and advanced synthesis capabilities. The company stated that the investment will support the production of increasingly complex molecules, including those for cancer and metabolic and cardiovascular diseases.

Tippecanoe Labs, which Evonik acquired from Eli Lilly in 2010, employs more than 650 people and is the company’s second-largest site in North America. The investment is supported by the Town of Shadeland, Indiana, and, according to Evonik, will help secure jobs, contribute to the local economy, and strengthen the Greater Lafayette community.

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