Eli Lilly announced a $6 billion investment in a new active‑drug‑ingredient (API) manufacturing facility in Huntsville, Alabama. The plant will be the third of four U.S. sites Lilly has opened since 2020 and is slated to begin construction in 2026, with full operations expected by 2032. The facility will produce small‑molecule synthetic and peptide medicines, positioning Lilly to meet the projected demand for its upcoming obesity pill, orforglipron, and to reduce reliance on overseas supply chains.
The decision to locate the plant in Huntsville reflects Lilly’s strategy to strengthen domestic API production and enhance supply‑chain resilience. By onshoring a key component of its obesity portfolio, Lilly aims to secure a steady supply of orforglipron, a GLP‑1 receptor agonist that is expected to capture a share of the rapidly expanding obesity‑drug market, which analysts estimate could reach $150 billion in the coming decade. The new facility will also support the production of other high‑margin peptide medicines, reinforcing Lilly’s competitive position against rivals such as Novo Nordisk.
The investment is projected to create 450 permanent, high‑value jobs in Huntsville and an additional 3,000 construction jobs during the build‑out. Local officials highlighted the economic impact, noting that the plant will boost the city’s manufacturing base and support ancillary businesses. Governor Kay Ivey praised the project as “the largest initial investment in Alabama’s history,” underscoring the state’s role in the national pharmaceutical supply chain.
CEO David A. Ricks emphasized the strategic importance of the facility, stating, “Huntsville’s track record of science and innovation, supported by advanced manufacturing expertise and a skilled workforce, makes Alabama an ideal location for Lilly to expand domestic manufacturing capacity for next‑generation medicines.” He added that the plant “continues the onshoring of active‑pharmaceutical‑ingredient production, strengthening supply‑chain resilience and reliable access to medicines for patients in the U.S.”
Eli Lilly’s Q3 2025 results provide context for the investment. Revenue rose 54% year‑over‑year to $17.6 billion, driven by robust sales of its obesity and diabetes portfolio, including Mounjaro and Zepbound. Earnings per share increased to $7.02, a $0.24 beat over consensus, reflecting strong pricing power and cost control amid a high‑margin mix. The company raised its full‑year revenue guidance to $63.0 billion–$63.5 billion, signaling confidence in continued demand for its GLP‑1 products and the new manufacturing capacity.
The plant’s launch is expected to reinforce Lilly’s competitive edge in the obesity market, where it faces intense rivalry from Novo Nordisk. By securing domestic API production, Lilly mitigates supply‑chain risks that have historically constrained growth for other manufacturers. The investment also positions the company to capitalize on the projected expansion of the obesity‑drug market, while maintaining pricing power through efficient, high‑quality production. Overall, the announcement underscores Lilly’s commitment to scaling its obesity franchise and sustaining long‑term growth.
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