Evonik invests US$100 million to upgrade its U.S. drug substance contract manufacturing site

Meets the growing demand for U.S.-based contract development and manufacturing organizations (CDMOs) Further improves capabilities to handle increasing complexity of active pharmaceutical ingredients (APIs) Important step in Evonik's asset balancing strategy by investing in Next Generation Technologies ESSEN, Germany, July 8, 2026 /PRNewswire/ -- Evonik is making a significant investment to strengthen manufacturing capabilities at its Lafayette (Tippecanoe), Indiana facility. Over the next five years, the company will invest US$100 million to modernize 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 U.S.-based drug substance CDMO services.   "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," said Guido Skudlarek, head of the Health Care business line at Evonik. 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 modernization 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. "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," said Daniel Fricker, head of the Drug Substance product line at Evonik Health Care. Evonik's Tippecanoe site is the company's second-largest U.S. 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 ?g/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. Further Information
Learn more about Evonik's Drug Substance CDMO business: https://www.evonik.com/en/company/businesslines/hc/drug-substance.html Evonik: Leading beyond chemistry Evonik goes beyond the boundaries of chemistry with its combination of innovative strength and leading technological expertise. The global chemical company, headquartered in Essen, Germany, is active in more than 100 countries and generated sales of €14.1 billion and earnings (adjusted EBITDA) of €1.9 billion in 2025. The common motivation of the approximately 31,000 employees: to provide customers with a decisive competitive advantage with tailor-made products and solutions as a superforce for industry, thereby improving people's lives. In all markets. Every day. About Custom Solutions The Custom Solutions segment focuses on innovation-driven, tailor-made solutions for customers in specific growth markets. These solutions include additives for coatings, adhesives and sealants, polyurethane foams and lubricants, catalysts, and ingredients for the cosmetics, cleaning and pharmaceutical industries. In 2025, the segment generated sales of €5.4 billion with around 9,500 employees. Disclaimer In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release. Photo - https://mma.prnewswire.com/media/3004827/Evonik_Industries_Photo.jpg
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