Lilly plans to more than double U.S. manufacturing investment since 2020 exceeding $50 billion
Rhea-AI Summary
Eli Lilly (NYSE: LLY) has announced plans to build four new pharmaceutical manufacturing sites in the United States, bringing its total U.S. capital expansion commitments to over $50 billion since 2020. Three sites will focus on active pharmaceutical ingredients (API) manufacturing and chemical synthesis, while the fourth will expand injectable therapy production.
The expansion will create 3,000 high-skilled jobs including engineers, scientists, and technicians, plus approximately 10,000 construction jobs. The new facilities will manufacture medicines across therapeutic areas including cardiometabolic health, oncology, immunology, and neuroscience.
This investment builds upon Lilly's previous domestic expansion commitments of $23 billion from 2020-2024, which included facilities in North Carolina, Indiana, and Wisconsin. The company is currently negotiating with several states and welcomes additional interest by March 12, 2025. Production at the new facilities is expected to begin within five years.
Positive
- Largest pharmaceutical manufacturing investment in U.S. history ($50B)
- Creation of 3,000 high-wage manufacturing jobs
- Strengthening domestic supply chain through API manufacturing
- Expansion across multiple therapeutic areas
- Expected economic benefits for local communities
Negative
- 5-year timeline before facilities begin production
- Significant capital expenditure commitment
- Dependency on Tax Cuts and Jobs Act extension
News Market Reaction
On the day this news was published, LLY gained 1.46%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Company expects to begin building four more domestic manufacturing sites this year and add 13,000 high-wage manufacturing and construction jobs in America
The company's plans represent the largest pharmaceutical manufacturing investment in
Three of the future
"Lilly's optimism about the potential of our pipeline across therapeutic areas – cardiometabolic health, oncology, immunology and neuroscience – drives our unprecedented commitment to our domestic manufacturing build-out. Our confidence positions us to help reinvigorate domestic manufacturing, which will benefit hard-working American families and increase exports of medicines made in the
At these four new sites, Lilly expects to create more than 3,000 jobs for highly skilled workers, including engineers, scientists, operations personnel and lab technicians. Additionally, the company anticipates that it could create nearly 10,000 construction jobs during the development of the sites.
"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."
Expected additional economic benefits of these new sites to the selected communities include increased local spending, tax revenue, economic diversification, improved infrastructure, population growth, and training and development opportunities.
Ricks added, "The Tax Cuts and Jobs Act legislation passed in 2017 during President Trump's first term in office has been foundational to Lilly's domestic manufacturing investments, and it is essential that these policies are extended this year. We believe that our investments in America and upskilling our nation's workforce will spark a significant ripple effect. For every job we create, many more will be generated, positively impacting the communities that host our innovative new sites."
The company's previous total domestic capital expansion commitments from 2020 to 2024 totaled
- New sites in
Research Triangle Park andConcord, North Carolina - New sites at the LEAP Innovation District in
Lebanon, Indiana - Expansions and updates to several different manufacturing facilities in
Indianapolis - Development of the new Lilly Medicine Foundry in
Lebanon, Indiana - Acquisition and expansion of Lilly's manufacturing site in
Kenosha County, Wisconsin
State submissions
The company is currently in negotiations with several states and welcomes additional interest by March 12, 2025. Please visit www.lilly.com/manufacturing-2025 for more information, including how to respond and submit interest online. Lilly expects to announce all four future site locations in 2025 and anticipates facilities will begin making medicines for patients within five years.
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 nearly 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 references 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 of medicines, hiring and related initiatives and reflects Lilly's current beliefs and expectations. However, as with any such undertaking, there are substantial risks and uncertainties in the manufacturing process, development and commercialization of pharmaceutical products any of which could impact the overall commercial success of our products, and as related to cost, completion timing, expected capacity, personnel, and other factors which could impact expected benefits of the capacity expansion and related initiatives. For further discussion of risks and uncertainties relevant to Lilly's business 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.
Additional Quote Options for Media Use
U.S. Senator Jim Banks: "I couldn't be prouder that Lilly is expanding facilities in the
Refer to: | Carla Cox; cox_carla@lilly.com; 317-750-3923 (Media) |
Michael Czapar; czapar_michael_c@lilly.com; 317-617-0983 (Investors) |
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SOURCE Eli Lilly and Company
FAQ
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