
Eli Lilly invest 27 billion US dollars in the new US production

Eli Lilly On Wednesday, at least 27 billion US dollars will invest for the construction of four new production sites in the USA, since the demand for weight loss and diabetes injections increases according to blockbusters and the company develops new medicines for other diseases.
It is that drug manufacturers and companies work in various industries to build a good will with President Donald Trump, which emphasizes the redesign of production in the USA and reduces the dependence on foreign supply chains. He threatened companies – and especially pharmaceutical companies – with tariffs if they do not produce products in the USA
Eli Lilly made the announcement at an event in Washington, DC and emphasized the political undertones of the strategy. The event contained several speakers from the Trump administration, including Kevin Hassett, director of the National Economic Council of the White House, and the Minister of Commerce Howard Lutnick, who expressly connected the announcement to Trump's policy.
Lutnick said that the investment was “exactly what the Trump administration is about, which is built in America, manufactured and redesigned, invested in America”. He thanked Eli Lilly for “exactly what the President had hoped for.”
Lutnick added: “If you want to understand the US tariff policy” of the USA “, I just articulated it.”
The move has been bringing the entire US production investment from Eli Lilly to more than 50 billion US dollars in recent years. The other 23 billion US dollars come from the company's investments in new facilities and location expansion since 2020, which has contributed to reducing the supply of the popular medication.
“This is the greatest pharmaceutical expansion investment in US history,” said the CEO of Eli Lilly, David Ricks, at the event. “We make these investments … to prepare for the demand that we expect for future pipeline medication in our therapeutic areas.”
The company's shares rose by more than 1%on Wednesday.
Three locations announced on Wednesdays announced on Wednesdays will produce active ingredients in medication such as Tirepatide, the active ingredient in ELI Lilly's obesity medication Zepbound and diabetes treatment Mounjaro. Ricks noticed that there is a “real gap in the supply chain in the USA in connection with the availability of the active ingredient in our country” in the USA.
The fourth location will expand the company's global manufacturing network for future injectable therapies, he added.
Eli Lilly has not chosen where the four new US sites are, said Ricks. The company will accept location submissions by March 13 and announce decisions on new websites in the coming months.
Eli Lilly said that the four new locations will create more than 3,000 jobs for employees such as engineers and scientists as well as 10,000 construction work in the construction of the plants. The company's other US systems include locations in North Carolina, Indiana and Wisconsin.
The new investments are not exclusively dedicated to Eli Lilly's current and future obesity and diabetes treatments. The company places its future beyond Zepbound and Mounjaro to provide medication from its wide range of cancer, Alzheimer's disease and other diseases.
Ricks said the company was optimistic about its pipeline in therapeutic areas, including cardiometabolic health, oncology, immunology and neurosciences.
Nevertheless, the new investments are based on the success of Zepbound and Mounjaro, which coincide the dominance of the booming market for so-called GLP-1 medication Novo Nordisk'S weight loss medication and diabetes treatment ozempic. Some analysts assume that the global obesity market in the early 2030s is worth more than 150 billion US dollars annually, which makes it crucial for both companies to maintain their share if other drug manufacturers endeavor to join.
During the event, Ricks made a shot at cheaper versions of his injectable medication and said: “America is exposed to a growing threat from an influx of fake and reinforced medication.”
Eli Lilly's efforts to increase the range of Zepbound and Mounjaro would like to ensure that patients in question will certainly access these brand treatments rather than cheaper versions. The patients flocked to these non -approved imitators when the branded medications were scarce or if they had no insurance cover for the costly treatments.
Since then, the FDA has exceeded the lack of tirzatide, which essentially excludes many compounding pharmacies from the production of imitators.
Hassett said the problem “is also bothered by the White House” because offshore producers of imitators “threaten to” threaten “life in the United States
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In a further sign of the political goals of the announcement, Ricks observed Trump's tax cuts and jobs for 2017 and explained that the legislation for the company's production investments was “fundamental”. He called it “essentially that these guidelines will be permanently extended this year”.
The most important provisions of this law will expire at the end of December – although a reduction in corporation tax rate will remain in force.
This legislation, which was adopted by a majority republican congress during Trump's first term, was the largest tax overhaul for almost three decades, which lowered taxes for individuals and companies. It lowered corporation tax rate to 21%, limited deductions for state and local taxes to 10,000 US dollars and expanded the tax credit for children.
“Long-term progress will also require the US guidelines to continue to protect the rights to intellectual property and to promote an innovative environment in which we can do our work,” said Ricks.
In a similar way, Novo Nordisk has invested billions in production to increase the delivery of Wegenzam and Ozempic, and in 2024 announced that it would take over three locations from the contract manufacturer for $ 11 billion.