Evonik is making an investment to strengthen manufacturing capabilities at its Lafayette (Tippecanoe), Indiana facility. Over the next 5 years, the company will invest USD 100 million to modernise key equipment–including 100 m³ reactors and other critical systems–enhancing reliability, enabling greater automation, and improving ergonomics and efficiency. This investment is supported by local government and positions Evonik to meet the rapidly growing demand for US-based drug substance Contract Development and Manufacturing Organisation (CDMO) services.

Guido Skudlarek, Head—Health Care Business, Evonik, said, “Strengthening our US 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 is balancing its global assets footprint across North America, Europe, and Asia, with a strategic emphasis on North America for its Drug Substance CDMO business. Evonik’s Tippecanoe site is a cornerstone of the company’s global CDMO network for small-molecule drug substances. The modernisation at the Tippecanoe site is an investment into Next Generation Technologies which help preserve technology leadership and enhance energy-efficient processes. This investment into smart preservation CAPEX is a growth driver for the long run, strengthening cost leadership, while reducing greenhouse gas emissions, following Evonik’s strict CAPEX guiding principles.

Geopolitical uncertainties have underscored the importance of Western-based 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.

Daniel Fricker, Head—Drug Substance Product Line, 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.”

Evonik’s Tippecanoe site is the company’s second-largest US site and one of the world’s largest API facilities. It is home to the industry’s biggest High-Potency API (HPAPI) operation with 170 m³ of dedicated capacity and advanced containment systems (OEL down to 0.1 μg/m³). The site also offers 860 m³ of reactor capacity for general APIs, 2,500 m³ for large-scale fermentation, and a technology portfolio spanning 10 advanced platforms. Acquired from Eli Lilly in 2010, Tippecanoe has evolved into a multi-customer CDMO serving complex drug substance projects.