Lilly Sells Manufacturing Plant in Indiana to German Chemical Company

The good news though is that it appears employees will be offered jobs with the new owner. The sale is perhaps an omen to how some of big pharma is getting ready for additional generic drug competition. BD

BOSTON, Oct 14 (Reuters) - Eli Lilly & Co (LLY.N) said on Wednesday that it had agreed to sell one of its manufacturing facilities to German chemical company Evonik Industries AG EVON.UL as it braces for generic competition to several of its most important drugs.

The Indianapolis-based drugmaker said it would take a charge of 23 cents a share in the third quarter to cover restructuring costs and asset impairment.

Lilly said about 700 employees at its Tippecanoe Laboratories facility in Lafayette, Indiana, would be offered new employment at Evonik. The plant produces active pharmaceutical ingredients and specialty