Lilly halts Va insulin plant construction

Announcing several strategic changes to its global manufacturing operations, US pharmaceutical major Eli Lilly said that it has stopped construction of the planned insulin-making facility at Prince William County, Virginia, because it is now able to meet expected growth for these products from existing sites and the new capacity now being built in Sesto, Italy. The company ascribed the decision to smaller demand for its products than had been expected. The assembly operation for Lilly's new pre-filled insulin pen, Humalog MirioPen, will take place at its Indianapolis facility.

At the same time, the company said that it planned significant new investments for Kinsale in Ireland and its Indianapolis parenteral operations to manufacture a new generation of biotechnology products. Both expansions are part of a $1.5 billion investment in the company's biotechnology capabilities. It added that it expects to launch one new biotechnology agent a year, on average, beginning in 2010.

The restructuring and asset impairment charges are estimated at about $155.0-$185.0 million and will be split between the fourth quarter of 2006 and first three months of 2007, the firm said.