At its swanky “Lilly in America” press conference held in Washington, DC, last week, Eli Lilly announced plans to more than double its US manufacturing investment made since 2020, which has now surpassed $50 billion.
The pharmaceutical giant will allocate an additional $27 billion to expand its domestic production capabilities. This investment is designed to meet the growing demand for its medicines, including the wildly popular GLP-1 diabetes and weight-loss tirzepatide treatments Mounjaro and Zepbound.
Lilly’s latest investment will fund the construction of four new pharmaceutical manufacturing facilities across the country. Three of the sites will focus on producing active pharmaceutical ingredients (APIs), while the fourth will be dedicated to increasing the production of injectable medications like the GLP-1 drugs.
At the press conference, Lilly CEO David Ricks said investment represents “the largest pharmaceutical expansion investment in US history.” He also called the four new plants “mega sites.”
He emphasized that the investments would help avoid potential supply chain issues. Since 2022, Mounjaro and Zepbound were in short supply due to the ever-increasing demand for the drugs.
“The real gap in the supply chain in the US relates to active ingredient availability,” he said, explaining that two of the facilities will be dedicated to synthetic chemistries, which “have been absent from the landscape in the US for some time.”
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The expansion is expected to generate over 3,000 high-skilled jobs — for scientists, engineers, lab technicians and operations personnel — in addition to approximately 10,000 construction roles across the four new sites. This aligns with the broader push to enhance domestic pharmaceutical manufacturing, reducing reliance on foreign supply chains and ensuring greater resilience in drug production.
Through the expansions, Lilly is also aiming to protect its market share from compounding pharmacies, which can produce copycat versions of branded drugs facing shortages.
Lilly initiated legal action against several compounding pharmacies and medical spas producing unauthorized versions of Mounjaro and Zepbound.
Additionally, in January, Lilly sought to intervene in a lawsuit from compounding pharmacies challenging the FDA’s decision to remove tirzepatide from its drug shortage list, aiming to protect its market share and address safety concerns associated with compounded versions.
Both Mounjaro and Zepbound officially made it off the FDA shortage list late last year, putting a brake on compounders.
Ricks also addressed the compounders, saying, “This bold (investment) reflects our commitment to stay ahead of anticipated demand for safe, high-quality FDA approved medicines of the future.”
Despite shortages and copycats, the company’s 2024 sales soared for its key drugs, with Mounjaro reaching $11.5 billion and Zepbound hitting $4.9 billion. The company’s breast cancer drug Verzenio (abemaciclib) brought in an impressive $5.3 billion, a 37% increase from the previous year.
Ricks also talked about the importance of continued government support for manufacturing growth, particularly as geopolitical and economic factors influence supply chain decisions.
Last year, Lilly unveiled multiple investments to expand manufacturing, including a $5.3 billion commitment to further develop its large-scale complex in Lebanon, Indiana, to expand capacity for the manufacturing of APIs for Zepbound and Mounjaro.
Lilly’s previous US capital expansion commitments from 2020 to 2024 totaled $23 billion. This included plans for new sites in Research Triangle Park and Concord, North Carolina; facilities at the LEAP Innovation District in Lebanon, Indiana; expansions in Indianapolis; the development of the Lilly Medicine Foundry in Lebanon, Indiana; and the acquisition and expansion of its manufacturing site in Kenosha County, Wisconsin.
Additionally, the company’s $1.7 billion plant in Concord, North Carolina, is on track to be completed by 2027.
Lilly is the fast-growing company in the pharma world, with its 45% year-over-year revenue surge last year being the highest among major biopharma companies. Its $902 billion market cap is more than double that of any competitor.
Outside the US, Lilly is investing $1.8 billion to expand production at two plants in Ireland and building a $2.5 billion facility in Alzey, Germany, which is set to begin operations in 2027.
The announcement also comes as the pharma industry faces increasing scrutiny over drug pricing and accessibility. By boosting domestic production, Lilly aims to improve supply chain efficiency and potentially address affordability concerns related to its blockbuster drugs. The company’s investment underscores its long-term vision for sustained growth and innovation in the healthcare sector.
This move may also put pressure on competitors to follow suit, reinforcing a trend of reshoring manufacturing to the US as companies navigate evolving regulatory, economic and geopolitical landscapes.
As Lilly scales up its operations, the expansion will likely have a ripple effect across the pharma and biotech industries, creating job opportunities and bolstering US drug manufacturing capabilities.
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