Eli Lilly Aims To Close Supply-Demand Gap For Zepbound/Mounjaro As It Acquires Manufacturing Facility From Nexus Pharma
Portfolio Pulse from Vandana Singh
Eli Lilly (NYSE:LLY) is acquiring a manufacturing facility from Nexus Pharmaceuticals to expand its parenteral product manufacturing and address the supply-demand gap for its GLP-1 drugs Zepbound and Mounjaro. The facility, located in Pleasant Prairie, Wisconsin, will support increased demand for Lilly's medicines, with production expected to begin by the end of 2025. This move comes as Lilly faces a supply crunch for Zepbound and Mounjaro, with limited supplies expected through the second quarter of this year. Lilly's investments aim to increase production throughout 2024 and beyond, with the drugs expected to be available from a new North Carolina facility in January 2025.
April 22, 2024 | 6:21 pm
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Eli Lilly's acquisition of a manufacturing facility from Nexus Pharmaceuticals is a strategic move to expand its manufacturing capacity for Zepbound and Mounjaro, addressing the current supply-demand gap. This expansion is crucial for Lilly as it faces a supply crunch for these drugs, with limited supplies expected to continue into the second quarter. The investment in manufacturing and supply capacity is expected to progressively increase production throughout 2024 and beyond, potentially improving stock performance as supply constraints ease.
The acquisition directly addresses the supply constraints that have been a significant concern for Eli Lilly, particularly for its GLP-1 drugs Zepbound and Mounjaro. By expanding its manufacturing capacity, Lilly is poised to meet the increasing demand for these drugs, which is likely to have a positive impact on its stock price in the short term. The clear timeline for production commencement and the specific mention of the supply-demand gap highlight the importance of this move for Lilly's operational and financial performance.
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