Evonik is investing US$100 million over the next five years to modernize its manufacturing operations at its Tippecanoe (Lafayette), Indiana facility.

 

Thus, strengthening its US drug substance contract development and manufacturing organization (CDMO) capabilities amid rising demand for domestic pharmaceutical production.

 

The investment will upgrade key manufacturing assets, including 100 m³ reactors and other critical systems, to improve operational reliability, increase automation, enhance ergonomics, and boost overall efficiency. Backed by local government support, the expansion positions the company to meet accelerating demand for U.S.-based drug substance CDMO services.

 

"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,” said Guido Skudlarek, head of the Health Care business line at Evonik.

 

The investment forms part of Evonik’s broader strategy to strengthen its Drug Substance CDMO network across North America, Europe, and Asia, with a particular focus on expanding its North American manufacturing footprint. The Tippecanoe facility serves as a cornerstone of the company's global small-molecule drug substance operations.

 

Beyond expanding capacity, the modernization will introduce next-generation manufacturing technologies designed to preserve Evonik’s technological leadership while improving energy efficiency. 

 

The company said the investment aligns with its smart preservation CAPEX strategy, supporting long-term growth, strengthening cost competitiveness, and reducing greenhouse gas emissions.

 

The expansion also comes as pharmaceutical manufacturers respond to geopolitical uncertainties that have heightened the importance of secure, Western-based production for critical drug substances and drug delivery technologies. 

 

At the same time, the growing complexity of modern therapeutics is driving demand for more advanced manufacturing 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.