Lilly to build $6 billion facility to manufacture active pharmaceutical ingredients in Alabama

Rhea-AI Summary

Eli Lilly (NYSE: LLY) will invest more than $6 billion to build a next-generation active pharmaceutical ingredient (API) manufacturing facility in Greenbrier South, Huntsville, Alabama, announced Dec. 9, 2025. The site will produce small-molecule synthetic and peptide medicines and is slated to manufacture orforglipron, Lilly's oral GLP-1 candidate for obesity, which the company expects to submit to regulators by year-end 2025.

Construction is expected to begin in 2026 with completion targeted in 2032. Lilly estimates the project will create 450 permanent high-value roles and about 3,000 construction jobs (total ~3,450 jobs) and says each dollar invested could generate up to 4x in local economic activity. This is Lilly's ninth U.S. manufacturing site announced since 2020 and the third of four new U.S. sites planned.

Positive

• $6 billion capital investment announced
• Facility will manufacture orforglipron (oral GLP-1)
• Creates 450 permanent high-value jobs
• Adds ~3,000 construction jobs (total ~3,450)
• Strengthens domestic API onshoring and supply-chain resilience

Negative

• Construction begins in 2026 with commercial completion only by 2032
• Majority of new roles are temporary: 3,000 construction vs 450 permanent jobs

Key Figures

Facility investment more than $6 billion New Huntsville, Alabama API manufacturing site

Total jobs planned 3,450 jobs Manufacturing plus construction roles at new Alabama site

Permanent roles 450 jobs High-value roles including engineers, scientists, and operations staff

Construction jobs 3,000 jobs Construction roles expected during facility build-out

Local activity multiplier up to four dollars Estimated local economic activity per dollar Lilly invests

Site applications more than 300 applications Number of locations considered for Greenbrier South site

U.S. sites since 2020 ninth U.S. manufacturing site Count of U.S. manufacturing sites announced since 2020

Expected completion 2032 Target completion year for the Huntsville facility

Market Reality Check

$997.59 Last Close

Volume Volume 3,038,935 is at 0.79x the 20-day average of 3,846,153 shares. normal

Technical Price $997.59 is trading above the 200-day MA at $812.55.

Peers on Argus

LLY fell 1.26% with mixed large-cap peers: ABBV (-1.31%), JNJ (-0.51%), NVS (-2.0%), NVO (-0.83%), while AZN rose 1.01%, suggesting stock- and name‑specific factors rather than a uniform sector move.

Common Catalyst Peer news flow today is focused on late-stage oncology clinical trials (multiple myeloma and ovarian cancer), while LLY’s announcement centers on U.S. manufacturing expansion and API capacity.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	FDA label expansion	Positive	-1.2%	Jaypirca CLL/SLL indication converted from accelerated to traditional approval.
Nov 24	Oncology data preview	Positive	+3.7%	Upcoming SABCS presentations on HR+ breast cancer programs, including Phase 3 EMBER-3.
Nov 24	Positive trial results	Positive	+1.0%	Two Phase 3 Jaypirca CLL studies met primary endpoints vs ibrutinib and chemoimmunotherapy.
Nov 19	Innovation hub expansion	Positive	+1.9%	Announcement of new Lilly Gateway Labs site in Philadelphia to support early biotech.
Nov 18	Conference participation	Neutral	+0.8%	Planned fireside chat at Citi’s 2025 Global Healthcare Conference on Dec 2.

Pattern Detected

Recent LLY news skew positive with generally constructive price reactions, though high-profile regulatory wins like label expansions have at times seen modest next-day weakness.

Recent Company History

Over the past month, Lilly has reported multiple positive milestones. On Dec 3, 2025, the FDA converted Jaypirca’s approval in CLL/SLL, yet shares slipped 1.2%. Positive Phase 3 Jaypirca data and broader oncology updates around late November were followed by gains of 0.99% and 3.72%. Strategic footprint moves, such as the Lilly Gateway Labs expansion in Philadelphia (+1.9%) and conference participation (+0.82%), also drew constructive reactions. Today’s large API facility investment fits a pattern of U.S. capacity and innovation expansion alongside oncology progress.

Market Pulse Summary

This announcement outlines a major long-term build-out, with more than $6 billion committed to a new U.S. API facility and 3,450 associated jobs, including 450 high-value positions. The plant is expected to support small molecule and peptide medicines such as oral GLP-1 orforglipron, with completion targeted for 2032. In context of Lilly’s recent clinical and footprint expansions, investors may watch execution progress, regulatory milestones for orforglipron, and future updates on U.S. manufacturing strategy.

Key Terms

api medical

"onshoring of active pharmaceutical ingredient (API) production, strengthening supply chain..."

An API, or Application Programming Interface, is a set of rules that allows different software programs to communicate and work together smoothly, much like a waiter translating your order into the kitchen and then bringing your meal back. For investors, APIs are important because they enable real-time access to financial data, trading systems, and other digital services, making it easier to make informed decisions quickly and efficiently.

glp-1 medical

"including Lilly's oral GLP-1, orforglipronCompany plans to create 3,450..."

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.

glp-1 receptor agonist medical

"Lilly's first oral, small molecule GLP-1 receptor agonist, which the company expects..."

A GLP-1 receptor agonist is a medicine that mimics a natural gut hormone to trigger insulin release, slow stomach emptying, and curb appetite — like using a key to turn on a lock that controls blood sugar and hunger signals. For investors, these drugs matter because they treat common conditions such as diabetes and obesity, can drive large prescription and sales growth, reshape healthcare costs, and heavily affect drug pipelines, competition and company valuations.

machine learning technical

"use state-of-the-art technologies, including machine learning, AI, digitally integrated..."

Machine learning is a set of computer programs that learn patterns from large amounts of data and improve their predictions or decisions over time, like a recipe that gets better each time it’s adjusted based on taste tests. For investors it matters because these systems can speed up analysis, spot trends or risks humans might miss, automate routine work, and potentially create competitive advantages or cost savings that affect a company’s performance.

AI-generated analysis. Not financial advice.

Huntsville site will focus on domestic production of small molecule synthetic and peptide medicines, including Lilly's oral GLP-1, orforglipron

Company plans to create 3,450 manufacturing and construction jobs at Lilly's ninth U.S. manufacturing site announced since 2020

INDIANAPOLIS, Dec. 9, 2025 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced plans to invest more than $6 billion in a new manufacturing facility in Huntsville, Alabama. This next-generation synthetic medicine active pharmaceutical ingredient (API) facility, the third of four new U.S. sites Lilly plans to announce, will produce small molecule synthetic and peptide medicines.

Importantly, the site will be among those that will manufacture orforglipron, Lilly's first oral, small molecule GLP-1 receptor agonist, which the company expects to submit to global regulatory agencies for obesity by the end of this year.

Lilly will bring 450 high-value jobs to the area, including engineers, scientists, operations personnel and lab technicians. Construction, expected to begin in 2026, is anticipated to generate 3,000 construction jobs as the state-of-the-art facility is built. Completion is expected in 2032.

"Huntsville's track record of science and innovation, supported by advanced manufacturing expertise and a skilled workforce, makes Alabama an ideal location for Lilly to expand domestic manufacturing capacity for next‑generation medicines," said David A. Ricks, Lilly chair and CEO. "Today's investment continues the onshoring of active pharmaceutical ingredient (API) production, strengthening supply chain resilience and reliable access to medicines for patients in the U.S."

Expanding Lilly's U.S. manufacturing presence in Alabama will boost the Huntsville economy. For every dollar Lilly invests there, it estimates up to four dollars in additional local economic activity. Also, for each manufacturing job created, several more will be generated in related sectors like supply chain, logistics and retail.

"Huntsville and our entire state have a proven legacy of innovation, and there is no better home for Lilly than right here in Alabama. Our roots in the biosciences industry run deep, and Alabama's contributions to this burgeoning sector continue," said Kay Ivey, Governor of Alabama. "We are proud to welcome Lilly's new U.S. manufacturing facility, which we are thrilled is the largest initial investment in our state's history. No doubt, Alabamians will help Lilly do things that have never been done before, and we will ensure this great company achieves their mission of improving the health and well-being of people all around the country and globe."

The Greenbrier South, Huntsville, Alabama site was selected from more than 300 applications, partly based on its proximity to the HudsonAlpha Institute for Biotechnology, an established bioscience campus that supports workforce training and research. In addition to its workforce potential, the region offers ready access to utilities, transportation and favorable zoning and incentives.

Lilly plans to use state-of-the-art technologies, including machine learning, AI, digitally integrated monitoring systems and advanced data analytics to drive right-first-time execution. Digital automation will be embedded throughout the site to streamline operations and ensure a reliable supply of safe, high-quality medicines.

"By establishing this new facility, Lilly is deepening America's expertise in advanced chemical synthesis and setting new standards for sustainable manufacturing," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. "Our investment not only expands our technical capabilities but also reinforces our commitment to environmental stewardship, leveraging innovative processes to minimize waste and achieve carbon neutrality. Each step forward strengthens our U.S. operations and supports healthier communities for the future."

Earlier this year, Lilly announced plans to bolster its domestic medicine production across therapeutic areas. The company recently revealed plans to build sites in Texas and Virginia and to expand an existing manufacturing site in Puerto Rico. Another U.S. location will be announced in the coming weeks.

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 and delivery 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 
Alabama Senator, Katie Britt: "Today's announcement is tremendous news for Huntsville and for our state. Lilly's $6 billion investment and the creation of thousands of good-paying jobs will strengthen domestic production of lifesaving medicines. This commitment further cements 'Made in Alabama' manufacturing as the gold standard and will help usher in a new golden age of American manufacturing, right here in Sweet Home Alabama. This project also underscores President Trump's leadership in driving major domestic investments to revitalize and unleash American manufacturing dominance and biomedical innovation. I'm proud to be a federal partner as we continue working to provide life-changing opportunities for Alabamians so our world-class workforce can continue to power America's future."

Mayor of Huntsville, Alabama, Tommy Battle: "Lilly's decision to invest $6 billion in a next-generation pharmaceutical manufacturing facility here in Huntsville is a tremendous vote of confidence in our people and our future. Huntsville has long been a place where innovation thrives and hard, 'impossible' things get done. We're proud to welcome Lilly to our community and excited to help shape the next era of breakthrough medicine."

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

What did Eli Lilly (LLY) announce about a new $6 billion facility in Huntsville on Dec. 9, 2025?

Lilly announced a >$6 billion API manufacturing facility in Huntsville to produce small-molecule and peptide medicines, including orforglipron.

How many jobs will the Lilly (LLY) Huntsville facility create and when will construction start?

The project is expected to create ~3,450 jobs (about 3,000 construction and 450 permanent) and construction is planned to begin in 2026.

When does Lilly (LLY) expect the Huntsville API plant to be completed and operational?

Lilly targets site completion in 2032.

Will the new Lilly (LLY) facility produce the oral GLP-1 orforglipron?

Yes. The Huntsville site is among locations that will manufacture orforglipron.

What economic impact did Lilly (LLY) claim for its Huntsville investment?

Lilly estimates up to 4x additional local economic activity for every dollar invested.

How does the Huntsville announcement fit into Lilly's U.S. manufacturing strategy (LLY)?

This is Lilly's ninth U.S. manufacturing site announced since 2020 and the third of four new U.S. sites planned.