Eli Lilly halves investment in Alzey plant after German health reform

Eli Lilly announced it will cut the budget for its new production facility in Alzey, Germany, from the originally planned €2.3 billion to roughly half that amount. The decision follows a recent German health‑care reform that raised the statutory manufacturer rebate on medicines from 7 % to 15.5 %, prompting concerns about the site’s competitiveness. A company spokesperson confirmed the reduction, citing the need to protect the project's financial viability.

Despite the cut, Wall Street analysts remain upbeat on the pharmaceutical group. Bank of America raised its price target to $1,334 and Truist Financial lifted its target to $1,370, citing strong demand for Lilly’s diabetes and obesity treatments and upcoming clinical data on the Alzheimer’s drug Kisunla. The stock closed the week at €1,044.80, up 55 % year‑to‑date.

Separately, Lilly faces a lawsuit in the United States from Tampa General Hospital alleging that the company’s rebate‑program reporting creates barriers to discounted drug access.