Eli Lilly has announced a $3.5 billion investment to construct a new manufacturing facility for injectable weight-loss drugs in Lehigh Valley, Pennsylvania. The plant is expected to become operational by 2031 and will employ 850 people once completed. During construction, the project is anticipated to create 2,000 jobs.
This initiative marks the fourth new site in Eli Lilly’s ongoing $50 billion reshoring campaign aimed at strengthening its U.S. supply chain. At a press conference, CEO Dave Ricks described the upcoming facility as an “anchor point for our U.S. supply chain.” He confirmed that products such as tirzepatide—marketed as Mounjaro and Zepbound—and retatrutide will be manufactured at this location. Tirzepatide is classified as a GLP-1/GIP receptor agonist, while retatrutide is a triple agonist recently shown to produce significant weight loss in Phase III trials.
Ricks also noted that the Lehigh Valley plant will be digitally integrated and designed for long-term use, with distribution planned both within the United States and internationally.
The decision to locate the facility in Lehigh Valley followed a request for information that generated over 300 responses from various regions. Pennsylvania Governor Josh Shapiro stated that after losing out on another potential Eli Lilly site six months prior, state officials worked closely with the company to improve their competitive position for future projects.
To secure Eli Lilly’s investment, Pennsylvania committed more than $100 million in incentives, including $50 million in tax credits, a $25 million grant for site development, and another $25 million grant through a job creation initiative.
Governor Shapiro commented on efforts to streamline government processes: “worked aggressively to reform our permitting process and speed up government.” He added that Lilly would spend “a whole lot less time waiting for permits and waiting for action,” emphasizing plans to deliver ahead of schedule.
The geographic location of Lehigh Valley was also cited as an advantage due to its proximity to major interstates and access to 1.8 million people within an hour’s drive. This places the facility within one day’s drive of one-third of the U.S. population.
This expansion forms part of Eli Lilly’s broader strategy to increase domestic manufacturing capacity across several states including Alabama, Texas, Virginia, North Carolina, Indiana, Pennsylvania itself, as well as expanding operations in Puerto Rico and Wisconsin. The company accelerated these efforts last year partly in response to potential tariffs proposed by President Donald Trump and highlighted its overall $27 billion investment in U.S. manufacturing.
In related developments affecting manufacturers nationwide, the FDA has launched its PreCheck Program which aims to facilitate more frequent communication between manufacturers and regulators regarding facility design and compliance requirements (https://www.biospace.com/article/fda-launches-precheck-program-intended-to-bring-manufacturers-home/).
At the press conference, Ricks reiterated his commitment: “Lilly will ship products made at the Lehigh Valley plant across the U.S. and overseas.”
