Eli Lilly announced on Apr. 14 plans to invest billions of dollars in China and Japan to support the production and launch of its oral GLP-1 receptor agonist, orforglipron, as part of a strategy to bring manufacturing closer to patients amid geopolitical uncertainty.
The move highlights the growing importance of localizing medicine production, especially as demand for GLP-1 drugs rises globally. Industry analysts say this shift is driven by both market needs and efforts to protect supply chains from international disruptions.
In March, Lilly committed $3 billion over the next decade to expand its operations in China, focusing on producing orforglipron—recently approved in the United States under the brand name Foundayo. The following day, it announced an additional investment of about $125 million in Japan aimed at meeting increasing demand for treatments targeting diabetes and obesity.
Edita Hamzic, an analyst at GlobalData, said these investments show that "companies are now building geographically segmented manufacturing networks to serve local markets, manage policy pressures and protect against disruptions that could affect access to critical medicines." Hamzic also said companies must prioritize building local capacity "to prevent the return of GLP-1 shortages," adding that making medicines closer to patients can reduce import dependence and improve compliance with regulatory requirements.
Lilly’s disclosures came soon after Novo Nordisk pledged over $500 million for a facility in Ireland dedicated to making oral GLP-1 drugs for markets outside the U.S., further illustrating a trend toward regionalized pharmaceutical manufacturing. Hamzic noted that current conflicts such as the war in the Middle East may reinforce this approach.
Lucas Montarce, Lilly's chief financial officer, highlighted China's potential market size during a BofA Securities event last year: "There are about 180 million potential patients for GLP-1 products in China." Montarce also said around 20% to 25% of U.S. patients prefer oral medications over injectables—a preference even stronger overseas—and named Japan as a country where orals are favored. Lilly has filed for approval of orforglipron both in China and Japan.
