Eli Lilly Chair and CEO Dave Ricks speaks throughout a press convention in Houston, Sept. 23, 2025.
Antranik Tavitian | Reuters
Eli Lilly on Friday stated it is going to spend greater than $3.5 billion to construct a manufacturing plant in Pennsylvania’s Lehigh Valley that may assist make its next-generation obesity medication.
That features a intently watched experimental drug referred to as retatrutide, which has proven the very best weight reduction seen to date for any therapy in a late-stage trial.
It’s the fourth facility in a string of recent deliberate U.S. investments by the pharmaceutical big. Lilly introduced in February 2025 that it might spend at the very least $27 billion to construct new home manufacturing amenities, including to $23 billion in earlier investments since 2020.
On Thursday, President Donald Trump stated Lilly CEO Dave Ricks has advised him the drugmaker goals to construct six crops in the U.S. However Lilly has not confirmed these plans.
The corporate on Friday stated it expects building of the Pennsylvania plant to begin this yr and for the positioning to be operational in 2031.
That added manufacturing capability for upcoming weight reduction therapies is essential. Retatrutide is seen as a key pillar of Lilly’s long-term obesity technique after its standard injection Zepbound and upcoming obesity tablet.
Some well being specialists say retatrutide, which works by focusing on three intestine hormones quite than one or two, can attain sufferers with extreme obesity who would profit from much more weight reduction than what current injections can supply. Lilly plans to launch information from seven different Section 3 trials on the drug this yr.
The corporate and its chief rival, Novo Nordisk, have invested closely in boosting manufacturing capability after beforehand going through provide shortages for his or her current weekly injections in the U.S.
Making ready sufficient provide of upcoming medication can be central to Lilly’s efforts to keep its dominance in the booming GLP-1 market. The corporate secured the bulk share in the house final yr for the primary time, overtaking Novo.
However the Danish drugmaker is hoping to shut the hole with the launch of the first-ever GLP-1 tablet for obesity this month, which has already racked up 1000’s of U.S. prescriptions. Lilly has its personal tablet, orforglipron, that would win approval and launch later this yr.
Drugmakers have been scrambling to increase their manufacturing in the U.S. after threats by President Donald Trump to impose tariffs on prescription drugs imported into the U.S. However issues about these potential tariffs have eased following voluntary drug pricing offers with Trump in latest months that exempt corporations — together with each Lilly and Novo — from the levies for 3 years.
Eli Lilly stated the Pennsylvania web site will deliver 850 jobs to the realm, together with engineers, scientists, operations personnel and lab technicians, in addition to 2,000 building jobs.
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