Eli Lilly Announces $27 Billion U.S. Manufacturing Expansion

• Eli Lilly is investing $27 billion to build four new U.S. manufacturing facilities, doubling its domestic manufacturing spend since 2020 to over $50 billion.

• The expansion will create over 3,000 jobs and aims to strengthen supply chains, meet growing demand, and reduce reliance on foreign active pharmaceutical ingredients (APIs).

Eli Lilly has announced plans to invest $27 billion in four new U.S. manufacturing facilities, marking the largest pharmaceutical expansion investment in the country’s history. The Indianapolis-based company revealed the initiative during a press conference in Washington, D.C., under the banner “Lilly in America.”

The expansion will more than double the company’s domestic manufacturing investment since 2020, bringing the total to over $50 billion. The new facilities will support the production of active pharmaceutical ingredients (APIs) and injectable drugs. According to Lilly CEO David Ricks, the investment underscores the company’s commitment to ensuring a stable supply of high-quality, FDA-approved medicines while mitigating supply chain risks.

Construction on the sites will begin this year, with completion expected within five years. The company has not yet disclosed the locations but confirmed it is in negotiations with multiple states. The project will create over 3,000 jobs across scientific, engineering, and operational roles.

The move aligns with broader efforts to enhance domestic pharmaceutical manufacturing amid shifting U.S. economic policies. During the press event, U.S. Department of Commerce Secretary Howard Lutnick praised Lilly’s decision, calling it an example of the administration’s push to bolster American industry.

With rising demand for its diabetes and obesity treatments, including Mounjaro and Zepbound, Lilly’s latest expansion aims to safeguard market share from compounding pharmacies and address potential ingredient shortages. Ricks highlighted that two of the planned API facilities will focus on synthetic chemistries, an area that has seen limited production within the U.S. in recent years.

This announcement follows a series of major investments by Lilly, including multi-billion-dollar projects in Indiana, Wisconsin, and North Carolina, as well as international expansions in Ireland and Germany. The company’s revenue surged 45% year-over-year in the last quarter, driven by strong sales of its diabetes and oncology treatments, reinforcing its position as the fastest-growing pharmaceutical firm in the industry.

Source: Fierce Pharma