Eli Lilly Doubles Capital Spending On US Drug Manufacturing With $50 Billion Target (CORRECTED)

Editor’s Note: The story has been updated to correct the new site locations

At a press conference in Washington, D.C., Eli Lilly And Co LLY announced its plans to bolster its domestic medicine production across therapeutic areas by building four new pharmaceutical manufacturing sites in the United States. The company is currently negotiating with several states. The company’s previous total domestic capital expansion commitments from 2020 to 2024 totaled $23 billion.

This brings the company’s total U.S. capital expansion commitments to over $50 billion since 2020.

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Eli Lilly expects to announce all four future site locations in 2025 and anticipates facilities will begin making medicines for patients within five years.

• Three of the future U.S. sites announced will focus on manufacturing active pharmaceutical ingredients (APIs), reshoring critical capabilities of small-molecule chemical synthesis, and further strengthening Lilly’s supply chain.
• The fourth location will extend the company’s global parenteral manufacturing network for future injectable therapies.

Lilly expects to create more than 3,000 jobs for highly skilled workers at these four new sites, 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.

“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,” said David Ricks, Lilly chair and CEO.

In May 2024, Eli Lilly more than doubled its investment in its Lebanon, Indiana, manufacturing site with a new $5.3 billion commitment, increasing its total investment from $3.7 billion to $9 billion. 

In October, Eli Lilly announced a $4.5 billion investment to create the Lilly Medicine Foundry, a new center for advanced manufacturing and drug development.

Price Action: LLY stock is down 0.42% at $901.40 premarket at the last check on Friday. (updated)

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