Lilly to Build $6.5 Billion US Pharmaceutical Plant

Lilly plans to build a new $6.5 billion manufacturing facility at Generation Park in Houston, Texas. This planned next-generation synthetic medicine active pharmaceutical product (API) facility, the second of four new US sites Lilly will announce this year, will focus on manufacturing the company's pipeline of small molecule medicines across therapeutic areas, including cardiometabolic health, oncology, immunology and neuroscience. It is expected to be operational within five years.

The site will be among those that will manufacture orforglipron, Lilly's first oral, small molecule GLP-1 receptor agonist, which the company expects to submit to global regulatory agencies for obesity by the end of this year.

"Our new Houston site will enhance Lilly's ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine's potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions," said David A. Ricks, Lilly chair and CEO. "This significant US investment and onshoring of our API production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future." 

Earlier this year Lilly announced plans to bolster its domestic medicine production across therapeutic areas by building four new pharmaceutical manufacturing sites in the United States. The company recently announced its intended site in Virginia and plans to announce the two remaining locations this year.

Lilly plans to use state-of-the-art technologies, including machine learning, AI, digitally integrated systems, and advanced data analytics to drive right-first-time execution. Digital automation will be embedded throughout the site to streamline operations and ensure a reliable supply of safe, high-quality medicines. To achieve this, the company will collaborate with local universities and invest in educational initiatives across Texas to build a strong pipeline of talent.

"With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the US and setting a new global benchmark for innovation and technical leadership in our industry," said Edgardo Hernandez, Executive VP and President of Lilly Manufacturing Operations.  "Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work."

Lilly selected Generation Park, a commercial development in the Lake Houston area northeast of the city, from more than 300 applications based on criteria including workforce potential, local incentives, access to utilities and transportation, and a favorable business environment. The capital investment and job figures announced by Lilly today exceed the company's initial commitments in the Texas incentive process submission, highlighting the crucial role this new site will play in enhancing Lilly's capacity to deliver medicines to people in the US and globally.