New facility expands U.S. manufacturing footprint
Eli Lilly announced Tuesday that it will invest $6 billion in a new manufacturing complex in Huntsville, Alabama, aimed at significantly increasing production of its experimental obesity pill and other key medicines. The project marks the company’s third major U.S. expansion this year and builds on a broader domestic manufacturing strategy.
The drugmaker has already outlined plans to spend at least $27 billion on four new U.S. sites, supplementing the $23 billion invested since 2020. Construction in Alabama is scheduled to begin in 2026, with completion targeted for 2032.
Boosting supply for high-demand obesity treatments
Eli Lilly CEO David Ricks said the project strengthens domestic production of active pharmaceutical ingredients and enhances supply chain resilience. Additional capacity is especially important for orforglipron, the company’s once-daily oral obesity treatment now under regulatory review.
Demand for GLP-1 medications has surged in recent years, leaving both Eli Lilly and competitor Novo Nordisk struggling to match consumer needs for their injectable versions. Supply constraints have eased somewhat, but continued expansion is seen as essential to support long-term growth in the category.
In November, orforglipron received a priority review voucher from the Food and Drug Administration, potentially speeding the approval timeline to just a few months.
Strategic shift amid tariff pressures
The pharmaceutical industry has accelerated domestic manufacturing investment following trade threats from President Donald Trump, who had previously floated tariffs on imported drugs. Those concerns have eased as the administration reached pricing agreements that shield manufacturers from new levies, but companies such as Eli Lilly continue to prioritize U.S. production for security and political stability.
Economic impact for Alabama
The new Huntsville facility is expected to create 450 full-time roles, including engineering, scientific, operations and laboratory positions. An estimated 3,000 construction jobs will also be supported over the build-out period.
