Eli Lilly and Co. (NYSE: LLY) on Tuesday today announced plans to invest more than $6 billion in a new manufacturing facility in Huntsville, Alabama.
The synthetic medicine active pharmaceutical ingredient (API) facility is the third of four new U.S. sites Eli Lilly plans to announce, will produce small molecule synthetic and peptide medicines.
In February, Eli Lilly bolstered its domestic medicine production with total U.S. capital expansion commitments of over $50 billion since 2020.
Also Read: Eli Lilly Eyes India For Manufacturing, Plans To Spend $1 Billion
The company’s previous total domestic capital expansion commitments from 2020 to 2024 totaled $23 billion.
Pipeline Support
The site will be among those that will manufacture orforglipron, Eli 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.
Eli Lilly will bring 450 jobs to the area, including engineers, scientists, operations personnel, and lab technicians.
Construction, expected to begin in 2026, is anticipated to generate 3,000 construction jobs as the state-of-the-art facility is built. Completion is expected in 2032.
“Today’s investment continues the onshoring of active pharmaceutical ingredient (API) production, strengthening supply chain resilience and reliable access to medicines for patients in the U.S,” said David Ricks, Eli Lilly chair and CEO.
Economic Boost for Alabama
Expanding Eli Lilly’s U.S. manufacturing presence in Alabama will boost the Huntsville economy. For every dollar Eli Lilly invests there, it estimates up to four dollars in additional local economic activity. Also, for each manufacturing job created, several more will be generated in related sectors like supply chain, logistics, and retail.
In September, Eli Lilly announced that it plans to build a $5 billion manufacturing facility in Goochland County.
The new facility will be Eli Lilly’s first fully integrated site dedicated to both API production and drug products, supporting its growing bioconjugate platform and monoclonal antibody portfolio.
LLY Price Action: Eli Lilly shares were up 0.18% at $984.01 during premarket trading on Wednesday, according to Benzinga Pro data.
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