Words by GOLD newsdesk
Eli Lilly and Company has announced a historic $50bn investment to expand its US manufacturing footprint, marking the largest investment of its kind in the pharmaceutical industry's history. The company plans to construct four new manufacturing sites across the country, aiming to bolster the domestic supply chain and reshore critical production capabilities.
The expansion will focus on manufacturing active pharmaceutical ingredients (APIs) within the US, reducing reliance on overseas production. One of the new facilities will be dedicated to producing injectable therapies, further diversifying Lilly’s manufacturing capabilities. These new sites will support Lilly’s work in cardiometabolic health, oncology, immunology, and neuroscience, areas where the company is already actively developing treatments.
David A. Ricks, Chair and CEO of Eli Lilly, commented on the company’s commitment to domestic manufacturing: “This bold move reflects our commitment to stay ahead of anticipated demand for safe, high-quality, FDA-approved medicines of the future,” he said. “Our confidence positions us to help reinvigorate domestic manufacturing, which will benefit hard-working American families and increase exports of medicines made in the U.S.A.”
This move is expected to create up to 13,000 jobs, including 3,000 high-wage positions in manufacturing and 10,000 construction jobs during the development of the sites. These jobs are expected to provide significant economic benefits to the surrounding communities, including increased local spending, higher tax revenues and infrastructure improvements.
Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations, emphasised the long-term vision behind the expansion: “We are not just building facilities,” he said. “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 healthcare.”
The decision to expand US-based production has been influenced by the 2017 Tax Cuts and Jobs Act, which Lilly credits for enabling such significant investments. Ricks noted that the tax policy has played a key role in the company’s ability to make this financial pledge, suggesting that extending similar policies could help sustain economic growth and job creation in the future.
Lilly’s new $50bn investment builds on previous capital commitments totalling $23bn since 2020. The new manufacturing sites are expected to begin producing medicines within the next five years. While the exact locations are still under negotiation, Lilly plans to announce them in 2025.
