HQ Team
February 26, 2025: Eli Lilly will set up four new pharmaceutical manufacturing facilities in the US for $27 billion to further bolster its supply chains, according to a statement.
The four new facilities will take the total capital expansion of the company in the US to $50 billion from 2020, and three of the new facilities will focus on manufacturing active pharmaceutical ingredients and reshoring critical capabilities of small molecule chemical synthesis.
The fourth location will extend the company’s global parenteral manufacturing network for future injectable therapies, according to the statement.
US President Trump met executives from major drugmakers, including Eli Lilly, last week to discuss industry concerns such as tariffs on drug imports. Trump wants drugmakers to move back production to the US and has plans to impose a 25% duty on pharmaceutical imports.
‘Reinvigorate domestic manufacturing’
“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,” said David A. Ricks, Lilly chair and CEO of Lilly.
“Our confidence positions us to help reinvigorate domestic manufacturing, which will benefit hard-working American families and increase exports of medicines made in the USA,” he said.
Ricks said, that 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.”
Lilly plans to create more than 3,000 jobs for highly skilled workers, including engineers, scientists, operations personnel and lab technicians at these four new sites. The company anticipates that it could create nearly 10,000 construction jobs during the development of the sites.
Make medicines in five years
“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.”
The company‘s previous total domestic capital expansion commitments from 2020 to 2024 totalled $23 billion.
Lilly expects to announce all four future site locations in 2025 and anticipates facilities will begin making medicines for patients within five years. The company is currently in negotiations with several states and welcomes additional interest by March 12, 2025, according to the statement.
