GERMANY—Boehringer Ingelheim, a German pharmaceutical company, plans to make a significant investment into chemical manufacturing and active pharmaceutical ingredients at its headquarters in Ingelheim, Germany.

The company recently broke ground on its “Chemical Innovation Plant,” which will cost €285 million (US$313.4 million) to construct and will produce APIs and drugs for clinical trials.

The plant, which is expected to be operational by 2026, will have four production lines and cover an area of 11,500 square meters (123,784 square feet).

It will bridge the gap between two other facilities in Biberach, Germany, and Ridgefield, CT, dedicated to R&D efforts.

With this investment, Boehringer Ingelheim is securing its long-term capacity for manufacturing new chemical entities. Biopharmaceuticals and small molecules each account for approximately half of the company’s research pipeline.

According to the chairman of Boehringer Ingelheim, Hubertus von Baumbach, the new facility will allow them to offer life-saving, more effective therapy options to patients from their research pipeline at a faster pace.

German Chancellor Olaf Scholz called the plant an excellent development and an enhancement of resilience for Germany and Europe by establishing local value chains.

Last April, Boehringer said it would spend 7 billion euros (US$7.6 billion) on capital investments through 2025.

More than 40% of the spend was focused on “new technologies” and the expansion of the company’s research and production network in its home country as well as in the U.S., Japan, Austria, France, and Spain.

Last month, Boehringer Ingelheim also announced an investment of €350 million (US$385 million) in a new facility called the Biologicals Development Center, located on its campus in Biberach, Germany, which will strengthen its biopharmaceuticals development.

In other development, Boehringer Ingelheim has entered into a deal with Australian biotech firm Kinoxis Therapeutics to develop small-molecule oxytocin-targeting precision psychiatry treatments for neuropsychiatric disorders.

The deal involves an upfront fee, research support payments, milestone payments, and royalties on future sales.

Boehringer Ingelheim already has a number of central nervous system and mental health therapies in development, including phase 2 drug BI 1358894, which is being tested in post-traumatic stress disorder and major depressive disorder, and Iclepertin, which is in phase 3 testing for cognitive impairment associated with schizophrenia.

In addition, Boehringer Ingelheim recently launched a clinical test for a smartphone app-based digital therapeutic to treat schizophrenia with Click Therapeutics.

At the same time, Bayer has also launched a new life sciences incubator called Co.Lab Cambridge in Cambridge’s Kendall Square, which is focused on supporting cell and gene therapy startups.

The incubator is being run by Fiona Mack, the previous head of JLABS @ TMC, Johnson & Johnson Innovation.

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