Eli Lilly, a major pharmaceutical company, plans to invest over $50 billion in U.S. drug manufacturing, more than doubling its previous commitment. This represents the largest investment in U.S. drug production in a decade. The new funds will be used to build four manufacturing facilities, three of which will produce ingredients typically imported from other countries. The fourth facility will support global production of injectable drugs.
This expansion is expected to create over 3,000 permanent jobs and nearly 10,000 construction jobs. Lilly’s decision to invest more in U.S. manufacturing comes after a meeting with former President Donald Trump, who warned of potential tariffs on pharmaceuticals if production doesn’t shift back to the U.S.
Lilly’s CEO, David Ricks, emphasized that investing in domestic production supports American jobs and increases exports of U.S.-made medicines. He also advocated for extending tax cuts from 2017, which helped reduce costs for companies like Lilly.
The success of Lilly’s obesity drug, Zepbound, partly drives this investment, as the company aims to keep up with demand and prevent shortages. Lilly is negotiating with several states to determine where the new factories will be built, with plans to start production within five years. The company’s annual spending on facilities has grown significantly, reflecting its strong sales and future growth expectations.