Evonik Industries AG (Essen, Germany) is making a significant investment to strengthen manufacturing capabilities at its Tippecanoe Labs site in Lafayette, Indiana. The site is home to one of the world’s largest facilities for the production of active pharmaceutical ingredients (APIs), the industry’s biggest high-potency API operation, and a major employer in the Greater Lafayette region.
The Tippecanoe Labs site in Indiana (Source: Evonik)
Over the next five years, Evonik will invest US$100 million to modernize key equipment – including large reactors and other critical systems – enhancing reliability, enabling greater automation, and improving ergonomics and efficiency. This upgrade positions Evonik to meet the rapidly growing demand for U.S.-based drug substance contract development and manufacturing (CDMO) services.
“Strengthening our U.S. drug substance business is a strategic necessity,” said Guido Skudlarek, head of the Health Care business line at Evonik. “With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint.”
Evonik is balancing its global asset footprint across North America, Europe, and Asia, with a particular emphasis on North America for its drug substance CDMO business. Evonik’s Tippecanoe site is a bedrock of the company’s global CDMO network for small-molecule drug substances. Small molecules have been a cornerstone of medicine for decades and continue to grow in importance because they are versatile and often easy to administer. The modernization at the Tippecanoe site is an investment into Next Generation Technologies which help preserve technology leadership and enhance energy-efficient processes.
Geopolitical uncertainties have underscored the importance of strengthening regional production for critical drug substances and delivery technologies. Moreover, modern therapeutic goals require increasingly complex molecules that are more challenging to manufacture. Evonik already supports complex synthesis but with rising molecular complexity, investment is needed to maintain and expand these capabilities.
“API complexity continues to rise, and this investment empowers us to work with our customers on even more challenging molecules for critical indications, such as cancer and metabolic and cardiovascular diseases,” said Daniel Fricker, head of the Drug Substance product line at Evonik Health Care.
Tippecanoe Labs, which Evonik acquired from the pharmaceutical company Eli Lilly in 2010, is Evonik’s second-largest site in North America with more than 650 employees. In addition, various contractors assist with maintenance, logistics, catering, and security. “The $100 million investment will help secure these jobs, contribute to the local economy, and strengthen the Greater Lafayette community,” said Todd Wetli, Tippecanoe Labs Site Manager.
The investment is supported by the Town of Shadeland, Indiana, and reflects a shared commitment to economic growth.