Ellie lily On Wednesday, it was said that it would invest at least $ 27 billion for the construction of four new manufacturing sites in the US, as its blockbuster weight loss and diabetes injection demand and the company develops new drugs for other conditions.
It comes as drug manufacturer and companies in various industries to create goodwill with President Donald Trump, who have emphasized the rebuilding manufacturing in the US and reducing dependence on foreign supply chains. They have threatened companies – and especially with pharmaceutical businesses – tariffs if they do not manufacture products in the US
Elli Lily announced at an event at Washington, DC – emphasizing political undertakings of strategy. The event included several speakers of the Trump administration, including Kevin House, Director and Commerce Secretary of the White House National Economic Council, and Commerce Secretary Howard Lutynik, who clearly tied the announcement of Trump’s policies.
Lutnik said that investment is “What is the Trump administration, which is building and building in the US, investing in the US, is building in the US.” He thanked Ellie Lily that “the President was really hoping what would happen.”
Lutnik said “If you want to understand America’s tariff policy,”, “I have expressed it.”
The move brings Eli Lily’s total American manufacturing investment over $ 50 billion in recent years. The other $ 23 billion has been from the company’s investment in new plants and site expansion since 2020, which has helped reduce the lack of its popular drug supply.
“This represents the biggest drug expansion investment in American history,” said David Ricks, CEO of Eli Lily. “We are doing these investments … for the preparation of the demand we expect for future pipeline drugs in our medical fields.”
The company’s shares closed over 1% on Wednesday.
Wednesday announced on Wednesday, three of the American sites will produce active materials in drugs, such as Terzepetides, Elli Lily’s obesity drug active ingredients and diabetes treatments in the jeepbounds. Ricks stated that “there is a real difference in supply chain in the US as it is related to active ingredient availability in our country.”
He said that the fourth site would expand the company’s global manufacturing network for future injected therapy.
Ricks said Eli Lily has not decided where four new American sites would be located. The company will accept place presentations through March 13 and announce decisions on new sites in the coming months.
Elli Lily said that four new sites would produce more than 3,000 jobs for workers such as engineers and scientists, as well as plants are manufactured as 10,000 construction jobs. Other American plants of the company include sites in Northern Carolina, Indiana and Visconsin.
New investment is not only dedicated to Ellie Lily’s current and future obesity and diabetes treatment. The company is charting its future beyond Zepbound and Mounjaro, with the expectation of cancer, Alzheimer’s disease and other conditions to distribute drugs from the broad pipeline.
Ricks stated that the company is optimistic about its pipeline in medical fields, including cardiometabolic health, oncology, immunology, and neurosciences.
Nevertheless, new investments are manufactured on the success of Zepbound and Mounjaro, which share the dominance of the market with so-called GLP-1 drugs. Novo nordiskWeight loss drug vegovi and diabetes treatment ozmpic. Some analysts hope that the global obesity drug market is worth more than $ 150 billion annually in the early 2030s, it became important for both companies to maintain their share to join with other drug manufacturers.
During the incident, Ricks took a shot in cheap mixed versions of its injectable drugs, stating that “the US faces a growing threat from the influx of fake and mixed drugs.”
The purpose of Elli Lily’s efforts to promote the supply of Zepbound and Mounjaro is to ensure that eligible patients are safely accessed by branded treatments instead of cheap mixed versions. When branded drugs were in low supply, or if they did not have insurance coverage for expensive treatment, patients used to come for those unpublished copycat.
The FDA has since announced the lack of tirzepetide over, which will essentially prevent several compounding pharmacies from copying.
Haset said the issue “harasses the White House” because the offshore makers of copycat drugs “are putting life in America”
In another indication of the political goals of the announcement, Ricks postponed Trump’s 2017 Tax Cuts and Jobs Act, stating that the law has been “fundamental” to the company’s manufacturing investments. He “essentially called this that these policies have been permanently extended this year.”
The major provisions from that law are determined to end in late December – although the decrease in corporate tax rate will remain effective.
The law passed by the majority-Republican Congress during Trump’s first term was the largest tax code overhaul in about three decades that reduced taxes for individuals and businesses. This cut the corporate tax rate up to 21%, cut the deduction for state and local taxes for $ 10,000, and expanded the child tax credit between other attempts.
“Long -term progress will also require American policies to continue to protect intellectual property rights and promote an innovative environment, where we can do our work,” Ricks said.
Novo Nordisk has similarly invested billions in construction to increase the supply of vegovi and ozmpic, announcing in 2024 that the contract would take three sites from Catalant for $ 11 billion from Catalant for $ 11 billion.
