MW Eli Lilly to spend $27 billion to expand U.S. manufacturing with four new sites

By Ciara Linnane

Drug company is moving to bring some processes back to the U.S. and bolster its supply chain

Eli Lilly & Co.'s stock rose 1.6% Wednesday, after the drug company announced plans to expand its U.S. manufacturing sites by adding four more locations this year, along with 13,000 high-wage jobs.

The plan will mean Indianapolis-based Lilly's $(LLY)$ total investments in its domestic manufacturing base since 2020 will exceed $50 billion. The new sites will account for $27 billion of that sum.

Three of the four new sites will focus on making active pharmaceutical ingredients, reshoring small molecule chemical synthesis and bolstering the company's supply chain. The fourth will focus on future injectable therapies, such as the ones needed for the company's lucrative Type 2 diabetes drug Mounjaro and its weight-loss drug Zepbound.

"This bold move reflects our commitment to stay ahead of anticipated demand for safe, high-quality, FDA-approved medicines of the future," Chief Executive David A. Ricks said in prepared remarks.

The company is expecting to create more than 3,000 jobs at the four sites for skilled workers in the areas of engineering, science, operations personnel and lab technicians. To build the sites, it expects to require nearly 10,000 construction workers.

"We believe that our investments in America and upskilling our nation's workforce will spark a significant ripple effect," Ricks said.

Lilly is in talks with several states and would welcome interest from others by a March 12 deadline, the company said.

The move comes amid a broader push by the administration of President Donald Trump to bring manufacturing back to the U.S. and to reduce reliance on imports from China and other countries.

Drug companies are keen to develop close relations with the current White House, which has promised big changes to the overall healthcare system. Companies want the government to retain corporate tax cuts enacted during Trump's first term and to ease regulations.

Trump has threatened to impose tariffs on imports of pharmaceuticals goods, which the industry is opposing.

Lilly's news comes a day after it announced cuts to the price of Zepbound for patients who pay for the drug themselves. The company also added two new doses as competition in the weight-loss space heats up.

For more, read: Eli Lilly cuts price of weight-loss drug Zepbound as competition heats up

Lilly's stock has gained 18.4% in the last 12 months, matching the S&P 500's SPX gains.

-Ciara Linnane

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February 26, 2025 11:53 ET (16:53 GMT)

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