Lilly to expand Indiana facility with record $5.3bn investment to boost production of APIs

In a historic move for the pharmaceutical industry, Eli Lilly and Company (NYSE: LLY) has announced a staggering $5.3 billion expansion of its Lebanon, Indiana manufacturing site. This investment increases the total commitment to this site to $9 billion, aimed at boosting the production of active pharmaceutical ingredients (API) for Zepbound (tirzepatide) injection and Mounjaro (tirzepatide) injection. These treatments address chronic diseases like obesity and type 2 diabetes, meeting the growing demand for innovative healthcare solutions.

Record-Breaking Commitment to Advanced Manufacturing

This new commitment marks the largest manufacturing investment in Lilly’s history and is considered the single largest investment in synthetic medicine API manufacturing in U.S. history. “Today’s announcement tops the largest manufacturing investment in our company’s history and, we believe, represents the single largest investment in synthetic medicine API manufacturing in U.S. history,” said David A. Ricks, Lilly’s chair and CEO.

Strategic Expansion and Job Creation

Since 2020, Lilly has committed over $16 billion towards developing new manufacturing sites across the U.S. and Europe, with additional locations in Research Triangle Park and Concord, North Carolina; Limerick, Ireland; and Alzey, Germany. The Lebanon site, part of Indiana’s LEAP Research and Innovation District, is expected to add 200 full-time jobs, bringing the total to approximately 900 full-time employees when fully operational. The expansion will also create over 5,000 construction jobs.

Eli Lilly Announces $5.3 Billion Expansion in Indiana for Enhanced Drug Manufacturing

Enhancing Local and Global Healthcare Capabilities

The Lebanon expansion is driven by the successful research results for tirzepatide, facilitating the swift availability of Mounjaro (2022) and Zepbound (2023) upon their approval. These treatments are the only approved medicines activating two incretin hormone receptors, GIP and GLP-1, which are critical in managing type 2 diabetes and obesity.

State and Educational Support for Lilly’s Expansion

Indiana Governor Eric J. Holcomb expressed pride in Lilly’s leadership in developing the LEAP Research and Innovation District, noting the significant economic and innovative impact expected. The state will collaborate on infrastructure improvements and workforce development, including a new training center in partnership with Lilly, Purdue University, and Ivy Tech Community College.

“Lilly continues to play a transformational role in shaping Indiana’s opportunity economy,” Governor Holcomb stated, highlighting the strategic choice of Indiana for this monumental investment.

Looking Ahead

With construction underway since 2023, Lilly expects to commence production at the Lebanon site by the end of 2026, with full operations expected by 2028. This initiative not only enhances Lilly’s production capabilities but also supports extensive community and educational developments, aligning with the company’s commitment to improving global health outcomes.