Lilly to End Production at Guayama, PR Plant

Eli Lilly and Co. is pursuing the sale of one of its three manufacturing plants in PR. The Guayama site will remain in operation until the end of 2015. The approximately 100 full-time employees will be offered employment at Lilly’s Carolina, PR location.
 
Lilly began manufacturing operations in PR in 1965 and has approximately 1,600 employees there. The company expects to record a charge of approximately $170 million in 4Q14.
 
“The decision to conclude operations at Guayama is based upon the evolution of the company’s pipeline, which includes a growing insulin and biologics portfolio, coupled with a less capacity-intensive small molecule portfolio,” said Paul Ahern, Ph.D., senior vice president of Global API and Dry Products Manufacturing. “The utilization of the site has been impacted by patent expirations on the medicines produced there. As we assessed our long-term capacity needs, the company made the business decision to conclude manufacturing at the site.”
 
Lilly is continuing to invest in the two remaining manufacturing plants at Carolina. The company recently spent $200 million to increase capacity at its insulin active ingredient manufacturing plant, along with an additional $40 million in investments to increase capabilities at its drug product site for its oral solid dosage network.