Eli Lilly and Company has announced plans to invest $4.5 billion to construct the Lilly Medicine Foundry, a groundbreaking facility dedicated to developing new methods for manufacturing medicines.
This initiative aims to enhance the efficiency of drug production and to expand the company’s growing pipeline of medications, particularly in the areas of obesity, Alzheimer’s disease, and other neurological conditions.
The Lilly Medicine Foundry will be the first facility to integrate research and production in a single location. According to Eli Lilly’s Chief Executive Officer David Ricks, the site will facilitate the transition of drug molecules from laboratory research to scaled-up production for clinical trials. The facility is set to open in late 2027 and will be located in Lebanon, Indiana, near a $9 billion manufacturing complex that is already under construction.
The investment aligns with Lilly’s recent successes with its popular GLP-1 drugs, Mounjaro and Zepbound, which have significantly increased in demand and are expected to generate $50 billion in revenue by 2028. This financial success provides the company with greater flexibility to pursue additional research and development opportunities.
The foundry is designed to produce small molecules, biologics, and genetic medicines, enabling the company to enhance its manufacturing capabilities while also developing innovative production techniques. The initiative is expected to create approximately 400 full-time jobs, including positions for engineers, scientists, and lab technicians.
Eli Lilly is actively exploring treatments beyond obesity. The company has 11 obesity drugs in its pipeline, as well as aspirations to develop therapies for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), and other brain-related disorders. Ricks emphasized the importance of advancing science in neuropsychology, citing a significant unmet need in mental health and neurodegenerative conditions.
In addition to the new facility, Eli Lilly has committed over $23 billion in capital investments in the United States since 2020, including a previous $5.3 billion investment to enhance manufacturing capacity for its diabetes and obesity medications. As demand for its products grows, Lilly is focused on scaling production to meet market needs while fostering research innovation.
With the Lilly Medicine Foundry, the company aims not only to increase its manufacturing output—projected to rise by 400% as new technologies are implemented—but also to solidify its leadership position in the pharmaceutical industry, particularly in the competitive GLP-1 drug market.
CNBC, Market Watch, and Reuters contributed to this report.
