Lilly breaks ground in Pennsylvania's Lehigh Valley on a $3.5 billion site to make next-generation obesity medicines, the latest of 10 new U.S. sites since 2020

Rhea-AI Summary

Eli Lilly and Company (NYSE: LLY) broke ground on a $3.5 billion manufacturing facility in Pennsylvania's Lehigh Valley for injectable medicines. The Fogelsville site will add capacity for next-generation obesity treatments, including retatrutide, an investigational medicine that activates three hormone receptors.

Lilly expects the facility to be operational by 2031 and create 850 high-wage jobs, along with approximately 2,000 construction jobs. Hiring is underway. The facility is part of Lilly's $50 billion U.S. production expansion and one of 10 new U.S. manufacturing sites announced since 2020. Four of those sites are dedicated to injectable medicines and devices. Retatrutide is being studied in Phase 3 trials and cannot legally be sold or marketed for human use.

3 points · 0 major

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Lehigh Valley capacity expansion broke ground; Lilly expects the injectable-medicine facility to be operational by 2031.
• Moderate pointU.S. production expansion totals $50 billion, with 10 new manufacturing sites announced since 2020.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lehigh Valley hiring is underway; Lilly expects 850 high-wage jobs and approximately 2,000 construction jobs.

Negative

• Moderate pointLehigh Valley manufacturing facility carries a $3.5 billion investment commitment.

News Explained

Alongside the facility, Lilly says it will provide up to $1 million over five years to the Upper Macungie Township Community Fund for an anticipated quality-of-life initiative at the community center.

Key Figures

Facility investment: $3.5 billion U.S. production expansion: $50 billion Facility jobs: 850 jobs +2 more

Facility investment

$3.5 billion

Lehigh Valley manufacturing facility

U.S. production expansion

$50 billion

Company-wide medicine production expansion in the U.S.

Facility jobs

850 jobs

High-wage jobs expected at the Lehigh Valley facility

Construction jobs

Approximately 2,000 jobs

As the site is built and brought online

Expected operational date

2031

Lehigh Valley site expected to be operational by this year

Historical Context

1 past event · Latest: Nov 05

1 event

1. Nov 05

   Retatrutide trial data

   24h Move

   -3.8%

   Phase 3 retatrutide trials reported reductions in knee osteoarthritis pain.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gip, glp-1, triple hormone receptor agonist, phase 3 clinical trials

4 terms

gip medical

"first-in-class investigational GIP, GLP-1 and glucagon triple hormone receptor agonist"

GIP commonly stands for Global Infrastructure Partners, a private investment firm that buys and manages large physical assets such as airports, power plants, toll roads and pipelines. Investors pay attention because when GIP acquires, invests in, or sells such assets it can alter cash flow, debt levels and long-term plans for those businesses—like a new landlord changing rents or making upgrades—affecting revenue, dividends and risk for shareholders and creditors.

glp-1 medical

"first-in-class investigational GIP, GLP-1 and glucagon triple hormone receptor agonist"

GLP-1 (glucagon-like peptide-1) is a natural hormone in the body that helps regulate blood sugar levels and appetite. Its significance to investors lies in its role as the basis for a class of medications that address conditions like type 2 diabetes and obesity, which are large and growing markets. Advances or investments in GLP-1-based treatments can signal opportunities in healthcare innovation and potentially impact pharmaceutical companies’ growth.

triple hormone receptor agonist medical

"a first-in-class investigational GIP, GLP-1 and glucagon triple hormone receptor agonist"

A triple hormone receptor agonist is a drug that simultaneously activates three different hormone ‘switches’ on cells to produce a combined effect, often aimed at treating metabolic conditions like diabetes or obesity. For investors, these drugs can offer greater potential benefit and market differentiation compared with single-target treatments, but they also carry higher development complexity and safety and regulatory risk, which can affect trial outcomes, timelines and valuation.

phase 3 clinical trials medical

"studying retatrutide in several Phase 3 clinical trials"

Phase 3 clinical trials are large, late-stage studies that test a drug or medical treatment in hundreds to thousands of patients to confirm it is safe and effective and to compare it with existing options. Investors care because positive results are a key step toward regulatory approval and commercial sales, reducing uncertainty much like a full dress rehearsal before a product launch; negative results can sharply reduce a program’s value.

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Facility will manufacture injectable medicines, including retatrutide

Site will create 850 high-wage jobs and 2,000 construction jobs

INDIANAPOLIS, Nov. 12, 2026 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today broke ground on a $3.5 billion manufacturing facility in Pennsylvania's Lehigh Valley. The site is one of 10 new U.S. manufacturing sites announced since 2020 and one of four among them dedicated to injectable medicines and devices. Part of the company's $50 billion push to expand medicine production in the U.S., the Lehigh Valley site will add capacity for the next generation of obesity treatments, including retatrutide, a first-in-class investigational GIP, GLP-1 and glucagon triple hormone receptor agonist.

David A. Ricks, Lilly Chair and CEO: "Obesity is one of the biggest health challenges of our time, and the science to treat it is moving quickly. Retatrutide is one of several next-generation medicines we're developing that could help millions more people living with obesity, type 2 diabetes, or both. This $3.5 billion investment means we'll be able to make these medicines in Pennsylvania for people here at home and around the world."

Supporting community in the Lehigh Valley
As part of its community commitment, Lilly and the Upper Macungie Township Community Fund are working together on an anticipated new community initiative at the Upper Macungie Community Center. Lilly will provide up to $1 million over five years to the Upper Macungie Township Community Fund to support an initiative to develop a new quality-of-life program for Lehigh Valley families, with a focus on nutrition and healthy living, fresh food access, health resources, and community programming. Good health starts with strong communities, and as the Lehigh Valley becomes one of Lilly's newest sites, the company is proud to support the families and organizations working to make the area stronger.

Creating careers in advanced manufacturing
Lilly is currently hiring in the Lehigh Valley and expects the new facility to create 850 high-wage jobs like engineers, scientists, operations personnel, and lab technicians – along with approximately 2,000 construction jobs as the site is built and brought online. Visit the Lilly Lehigh Valley career page for open positions or join Lilly's talent community for future opportunities.

Pennsylvania Governor Josh Shapiro: "Today marks another historic milestone in Pennsylvania's thriving life sciences sector and reinforces my Administration's commitment to advancing innovation, strengthening the economy, and creating good-paying jobs across the Commonwealth. We secured this historic, life-changing investment thanks to Pennsylvania's world-class workforce, research institutions, infrastructure, and resources, and my Administration will continue working hard to ensure Pennsylvania remains a place where groundbreaking discoveries can translate into meaningful economic opportunities and results for patients and families."

By pairing a highly skilled workforce with advanced technologies and specialized manufacturing, the Lehigh Valley site will help support a reliable supply of safe, high-quality medicines. It will use state-of-the-art technologies, including machine learning, AI, digitally integrated systems and advanced data analytics, to drive right-first-time execution, with digital automation embedded throughout the site to streamline operations.

Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations: "Before a dose of medicine leaves one of our sites, each production run goes through more than 5,000 documented steps and each unit is imaged and inspected more than 70 times to check for defects. These are just a few examples of the quality control we take to protect our patients. Lehigh Valley will build on that discipline with next-generation automation and digital systems, so we can do things right the first time and help patients count on their medicines for years to come, made in Pennsylvania."

The facility will be built and operated to the highest standards for safety, quality and environmental stewardship, and Lilly is committed to being a good neighbor in Lehigh Valley and across Pennsylvania. The site is targeting a Leadership in Energy and Environmental Design (LEED) Gold certification, demonstrating Lilly's focus on sustainable performance as it expands advanced manufacturing in the U.S.

The Lehigh Valley site, located in Fogelsville, Pennsylvania, is expected to be operational by 2031.

Lilly has announced 10 U.S. sites since 2020:

• Five will produce API:
  • Richmond, Virginia; Huntsville, Alabama; Houston, Texas; and two sites in Lebanon, Indiana – Lebanon API and Lilly Medicine Foundry, which will also focus on new production methods and making medicines for clinical trials
• Four will make injectable medicines and manufacture devices:
  • Research Triangle Park and Concord, North Carolina; Kenosha, Wisconsin; and Lehigh Valley, Pennsylvania
• One will make genetic medicines in Lebanon, Indiana; Lebanon Advanced Therapies

Additional quotes for media use

Jeff Fleischaker, Chairman of Upper Macungie Township Board of Supervisors: "We are thrilled to be able to celebrate the groundbreaking of the new Lilly facility in Upper Macungie Township. The Board of Supervisors, staff and residents of Upper Macungie are excited to welcome Lilly to our community. We are all looking forward to seeing what we can do, together, to make every day better in Upper Macungie."

U.S. Senator Dave McCormick: "Lilly's $3.5 billion investment in the Lehigh Valley is another major win for Pennsylvania, bringing 850 high-paying jobs, strengthening American manufacturing, and cementing the Commonwealth's position as a leader in life sciences and innovation. When I talk about building a pro-growth environment in Pennsylvania, this is the type of investment I am working to attract."

About retatrutide
Retatrutide is an investigational, once-weekly, triple hormone receptor agonist. Retatrutide is a single molecule that activates the body's receptors for glucose-dependent insulinotropic polypeptide (GIP), glucagon-like peptide-1 (GLP-1), and glucagon. Lilly is studying retatrutide in several Phase 3 clinical trials to evaluate its potential efficacy and safety in obesity and overweight with at least one weight-related medical problem, type 2 diabetes, knee osteoarthritis pain, moderate-to-severe obstructive sleep apnea, chronic low back pain, cardiovascular outcomes, and metabolic dysfunction-associated steatotic liver disease. Retatrutide is an investigational molecule that cannot be legally sold or marketed for human use.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering INNOVATIVE clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. C-LLY

Trademarks and Trade Names
All trademarks or trade names referred to in this press release are the property of the company, or, to the extent trademarks or trade names belonging to other companies are referenced in this press release, the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release are referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company's or their rights thereto. We do not intend the use or display of other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

Cautionary Statement Regarding Forward-Looking Statements  
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), including about planned capital investments in new manufacturing capacity, production and delivery of medicines, retatrutide as a potential treatment for adults with type 2 diabetes, obesity and other indications, hiring and related initiatives and the economic impact thereof and reflects Lilly's current beliefs and expectations. However, as with any pharmaceutical product, there are substantial risks and uncertainties in the process of drug research, development and commercialization. Among other things, there is no guarantee that planned or ongoing studies will be completed as planned, that future study results will be consistent with expectations or study results to date, that retatrutide will prove to be a safe and effective treatment for type 2 diabetes, obesity or other potential indications, that retatrutide will receive regulatory approval, or that Lilly will execute its strategy as expected. For further discussion of these and other risks and uncertainties that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Refer to:
Erica Hiquet; erica.hiquet@lilly.com (Media)
Michael Czapar; czapar_michael_c@lilly.com (Investors)

 

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SOURCE Eli Lilly and Company

FAQ

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When will Lilly's Lehigh Valley manufacturing facility be operational?

Lilly expects the facility in Fogelsville, Pennsylvania, to be operational by 2031. The company has broken ground on the $3.5 billion site, which will manufacture injectable medicines, including retatrutide.

What will Lilly's new Pennsylvania facility manufacture?

The Lehigh Valley facility will manufacture injectable medicines, including the investigational obesity treatment retatrutide. The site will add capacity for next-generation obesity treatments; retatrutide remains in Phase 3 clinical trials and cannot legally be sold or marketed for human use.