Evonik is investing US$100 million over the next five years to modernise its drug substance contract manufacturing facility in Indiana as demand grows for US-based pharmaceutical manufacturing.

The investment will upgrade manufacturing equipment at the company’s Tippecanoe site in Lafayette, including 100 m³ reactors and other production systems, with the aim of improving automation, manufacturing efficiency and operational reliability.

The project is also intended to increase Evonik’s capacity to manufacture increasingly complex active pharmaceutical ingredients (APIs) for customers developing new medicines.

Growing geopolitical uncertainty and increasing demand for regional pharmaceutical manufacturing have prompted many drug developers to expand relationships with US-based contract development and manufacturing organisations (CDMOs), particularly for critical medicines and complex drug substances.

Guido Skudlarek, head of the health care business line at Evonik, said: “Strengthening our U.S. drug substance business is a strategic necessity. With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint.”

Evonik said the investment forms part of its strategy to strengthen its North American manufacturing network while maintaining operations across Europe and Asia.

The Tippecanoe facility is one of Evonik’s largest global manufacturing sites for small-molecule drug substances and has been part of the company’s CDMO network since it acquired the site from Eli Lilly in 2010.

According to the company, the investment will enable the site to continue supporting customers developing increasingly complex APIs, particularly in therapeutic areas including oncology, cardiovascular disease and metabolic disorders.

Daniel Fricker, head of the drug substance product line at Evonik Health Care, said: “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, metabolic and cardiovascular diseases.”

The facility already manufactures both conventional and highly potent active pharmaceutical ingredients (HPAPIs), alongside large-scale fermentation products for pharmaceutical customers.

Evonik said the site includes dedicated HPAPI manufacturing capacity with advanced containment systems, as well as large-scale reactor capacity for small-molecule API production.

The modernisation programme is expected to improve manufacturing flexibility while helping the company meet increasing demand from pharmaceutical companies seeking reliable Western-based production capacity for drug substances.

Investment in domestic pharmaceutical manufacturing has accelerated in recent years as companies seek to strengthen supply chain resilience, reduce geopolitical risk and support the production of increasingly sophisticated medicines requiring specialist manufacturing expertise.