Eli Lilly is halving its planned €2.3 billion investment in a new manufacturing facility in Alzey, Germany. The company will reduce the number of projected jobs from 1,000 to 500. CEO Dave Ricks announced the decision in an interview with the newspaper Handelsblatt.
Proposed German healthcare legislation aimed at controlling drug costs triggered the reduction. Eli Lilly has already invested more than €1 billion in the project. The facility is still scheduled to open in 2027 but will operate at a reduced capacity.
The company will redirect the remaining funds to the United States. Potential domestic investments include expanding Pennsylvania operations or constructing a new manufacturing site.