 "Eli Lilly plans $ 850 million investment for expansion in US")
Eli Lilly and Company will invest $ 850 million for expansion of its US operations - spanning facilities across its US enterprise, including research laboratories, manufacturing sites, and general and administrative areas - in 2017. The investments are being driven by demand for Lilly products, as well as its robust pipeline of potential medicines in development targeting cancer, pain, diabetes and other unmet medical needs.
Company leaders were joined by federal, state and local government officials at Lilly Technology Center on March 24, 2017, where the details of the investments were unveiled, including plans for a new $ 85 million expansion of its Trulicity (dulaglutide) device assembly operations in the US. This expansion is part of a massive five-year investment by the company to expand its diabetes products manufacturing operations in the US, which also includes a $ 140 million insulin cartridge production facility that was officially launched on March 24, 2017.
According to David Ricks, Lilly's president and chief executive officer, Lilly's potential for growth and its long-standing commitment to the US market led to its decision to invest in its US operations and expand its manufacturing footprint in Indianapolis.
"Our future at Lilly is bright, as we're on a path to launch 20 new products in a 10-year time frame. As we have for our entire 140-year history, we continue to see Indiana and the United States as attractive places to research and make the medicines that we sell around the world,” Ricks said.
Ricks explained that Lilly's $ 850 million investment will fund both projects that are already underway as well as new projects that will be initiated throughout the course of the year, including additional projects in Indianapolis.
Over the course of the last five years (2012-2016), Lilly has invested approximately $1.1 billion to boost its diabetes products manufacturing operations in the US. These investments include upgrades to existing facilities, as well as the addition of new capacity and capabilities based on the evolution of the company's diabetes pipeline and portfolio and the increased prevalence of the disease.
During this period, Lilly has increased its US manufacturing workforce by more than 1,000 employees - from 5,000 to 6,000 roles - with approximately 400 added in Indianapolis.
"More than 400 million people around the world have diabetes - and that includes approximately 30 million people in the US alone. Lilly has spent more than 90 years providing solutions to people with diabetes, and today's announcement extends the deep commitment of our heritage. This manufacturing expansion, along with the introduction of several other new treatments over the last two and a half years, will allow Lilly to continue to be a leader in diabetes care,” said Enrique Conterno, president, Lilly Diabetes and Lilly USA.
Ricks added, “Lilly has invested approximately $5 billion in its US facilities during the last decade and more investments can be expected, particularly if the US adopts a more favourable tax environment. The equitable treatment of foreign earnings, a lower US corporate tax rate, and US innovation incentives - similar to the rest of the world - will encourage significant investment in the US, creating economic growth and good jobs for Americans.”
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