Eli Lilly announced plans on Friday to build a $3.5 billion pharmaceutical manufacturing complex in Pennsylvania that will produce its injectable weight-loss therapies, including the next-generation obesity medicine retatrutide. The project marks the company’s fourth newly announced U.S. production site as it moves to expand domestic manufacturing capacity and reinforce medical supply chains.
The company said construction of the Lehigh Valley facility is scheduled to begin in 2026, with the plant targeted to enter service in 2031. Lilly selected the site from more than 300 applications, citing factors that included local infrastructure and proximity to universities.
Officials described the Pennsylvania investment as the largest ever by a life sciences company in the state. The project is expected to create at least 850 new jobs, Governor Josh Shapiro said in a statement accompanying the announcement.
Lilly has been accelerating its U.S. manufacturing footprint. The company previously said it would invest over $27 billion in four new U.S. manufacturing sites and has indicated it will expand production at additional locations. The newly announced Lehigh Valley plant is the latest installment in that multi-site buildout.
The move comes as drugmakers increase domestic production in part because of political pressure over pharmaceutical imports. The company and industry peers have responded to comments from the White House that signaled potential tariffs on imported pharmaceutical products - a factor cited by several manufacturers as they pledge multibillion-dollar investments in U.S. plants to avoid penalties.
Lilly, which is the world’s most valuable drugmaker by market capitalization, has faced intense demand for GLP-1 weight-loss therapies and has been competing with Danish rival Novo Nordisk to scale output to meet growing demand. In parallel with injectable products, Lilly is preparing to roll out an oral weight-loss pill in multiple countries at a $150-a-month cash price while it pursues U.S. regulatory approval in the months ahead.
In addition to the production and employment effects, the company said the Lehigh Valley site was chosen for strategic reasons tied to its access to research institutions and existing logistics networks. Construction and operations timelines and the scale of investment underscore Lilly’s emphasis on strengthening domestic supply chains for high-demand medicines.
Separately, a commercial analytics product referenced in the announcement noted that an AI-based tool called ProPicks evaluates Lilly (LLY) alongside thousands of other companies using more than 100 financial metrics to identify potential investment ideas. The tool’s promotional materials cited past winners, including Super Micro Computer (+185%) and AppLovin (+157%), and indicated it looks at fundamentals, momentum and valuation when generating stock ideas.
Summary of facts:
- Lilly will build a $3.5 billion plant in Lehigh Valley, Pennsylvania to make injectable weight-loss drugs including retatrutide.
- Construction is to start in 2026 and the plant is expected to be operational in 2031.
- The site was chosen from over 300 applications and cited for proximity to universities and existing infrastructure.
- The investment is described as the largest life sciences investment in Pennsylvania history and will create at least 850 jobs.
- The project is part of Lilly’s broader U.S. expansion, following prior commitments of over $27 billion to four new U.S. manufacturing sites and further production expansions.