Lilly announces $27bn manufacturing investment in USLilly announces $27bn manufacturing investment in US

In a Washington, DC press conference, Dave Ricks, CEO of pharmaceutical giant Eli Lilly, announced that his company will invest $27 billion to construct four manufacturing sites in the US. Although three of those sites will focus on small molecule production, the fourth will extend the company's global parenteral manufacturing network for future injectable therapies. Locations for the new sites have yet to be announced, but the company expects to do so later this year.

The announcement follows $23 billion of domestic investments from the company since 2020, including manufacturing expansions in Indiana, Wisconsin, and Research Triangle Park in North Carolina.

The construction projects will employ nearly 10,000 workers, and once work is complete, Lilly plans to hire about 3,000 permanent employees, including engineers, scientists, operations personnel, and laboratory technicians.

"To deliver on our big bets on next-generation modalities like small molecules, biologics, and nucleic-acid therapies, Lilly is investing in the state-of-the-art manufacturing infrastructure needed to deliver tomorrow's safe and reliable medicines," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. "We are not just building facilities. We are creating a future where American innovation leads the world in pharmaceutical manufacturing, requiring a highly skilled workforce prepared to shape the future of health care. This is a significant step for our company, our communities, and the patients we serve."

In an interview with CNBC, Ricks said, “Of course, Zepbound (tirzepatide) and other future obesity medications will be a big part of that volume growth, but other medicines for cancer, Alzheimer’s, etc, will be important to support here with domestic manufacturing.”

He added that by making the public announcement, the company hopes to influence US tax policy and encourage low corporate taxes, which he said are important for fueling such ambitious domestic investment.