Eli Lilly to Invest $27 Billion in New U.S. Manufacturing Sites

WASHINGTON — Eli Lilly announced Wednesday it will invest at least $27 billion to establish four new manufacturing sites in the United States, responding to increasing demand for its medications and fulfilling efforts to reshore production. The announcement came during a press conference in Washington, D.C., emphasizing the political context of this substantial investment.

This latest commitment elevates Eli Lilly’s total investment in U.S. manufacturing to over $50 billion since 2020. The company has already allocated $23 billion for various projects that have expanded its domestic manufacturing capabilities. As CEO David Ricks stated, “Lilly’s optimism about the potential of our pipeline across therapeutic areas drives our unprecedented commitment to our domestic manufacturing build-out.”

Three of the new facilities will focus on producing active pharmaceutical ingredients, including tirzepatide, essential for Lilly’s popular obesity treatment Zepbound and diabetes medication Mounjaro. The fourth site is designated for manufacturing future injectable therapies. This plan underscores Lilly’s strategic intent to broaden its drug development portfolio beyond its existing offerings.

Ricks added that the current initiative aims to meet anticipated demand for “safe, high-quality, FDA-approved medicines of the future.” The company aims to ensure that patients have access to its branded treatments rather than cheaper, unverified alternatives that surfaced during previous shortages.

The FDA recently addressed issues surrounding the availability of tirzepatide, effectively curtailing the production of unapproved formulations by compounding pharmacies. Lilly’s impending expansion is expected to generate over 3,000 permanent jobs for skilled workers and create approximately 10,000 construction jobs.

The announcement also reflects industry’s alignment with the current administration’s push to increase domestic manufacturing capacity and reduce reliance on overseas supply chains. U.S. Secretary of Commerce Howard Lutnick remarked, “Lilly is doing exactly what the President was hoping would happen.”

The company also advocates for the continuation of favorable tax policies established during former President Donald Trump’s administration, affecting corporate tax rates and investment incentives. Ricks has expressed that these legislative measures are foundational to Eli Lilly’s commitment to domestic manufacturing.

Meanwhile, other pharmaceutical companies, such as Novo Nordisk, are making their own significant investments. Novo Nordisk plans to acquire three manufacturing sites for $11 billion to enhance the production of its diabetes and weight loss medications, further reflecting the competitive landscape of pharma manufacturing in the U.S.

As Lilly navigates a complex environment saturated with competitive pressures and regulatory considerations, the company’s new investment plan marks a pivotal step in reshaping the U.S. pharmaceutical manufacturing landscape.