Eli Lilly to boost weight-loss drug supply with $3 billion expansion

By Madison Muller and Miranda Davis

 

Eli Lilly & Co. is spending another $3 billion to build out its US manufacturing footprint as it ramps up production of its blockbuster diabetes and weight-loss drugs.

 

The latest investment — the biggest outside the company’s home state of Indiana, will expand a newly acquired production plant in Wisconsin, with construction expected to begin next year, according to a statement on Thursday. The move will help meet growing demand for injectable drugs like Mounjaro and Zepbound.

 

“Zepbound and Mounjaro will be the first products” to be made at the plant, Lilly’s Chief Executive Officer Dave Ricks said in an interview. “We need to make more and this is a good place to do it.”

 

Lilly’s plan brings its total investment in Wisconsin to $4 billion and adds to $23 billion already committed to build, expand and acquire manufacturing facilities globally since 2020. It also comes as companies, particularly those involved in sensitive sectors like health care, are bringing more of their operations back to American shores. 

 

The company’s s blockbuster weight-loss and diabetes drugs have made it the most valuable pharmaceutical company in the world. Zepbound, used to treat obesity, and Mounjaro, a diabetes drug, are in extremely high demand, with Lilly seeking to establish reliable supplies.

 

The Indianapolis-based company is just coming out of months-long shortages of the medications that stemmed from the complex process used to make its autoinjector devices. The Wisconsin plant, located in Kenosha county between Chicago and Milwaukee, will also help with device assembly and packaging.

 

The expanded facility will add 750 high-skilled jobs to the location including operators, technicians, engineers and scientists. Another 2,000 jobs will be created during the construction period, according to the statement.

 

“Southeastern Wisconsin has seen tremendous growth over the past year with major companies announcing significant investments in our state,” said Wisconsin Governor Tony Evers, who has been working to turn his state into a leader in life sciences. 

 

Lilly’s facility previously belonged to Nexus Pharmaceuticals, which agreed to build the $100 million factory in 2019. At the time, the Wisconsin Economic Development Corp. agreed to provide $1.5 million in performance-based tax credits to assist the company. 

 

It’s unclear if more incentives are on the table for Lilly. The agency said it can’t comment on any discussions it has with companies about government incentives until a contract is signed.

 

Lilly and other pharmaceutical companies are trying to bring more of their operations home in a bid to shorten and fortify supply chains. Drug makers are also contending with the US government’s burgeoning crackdown on Chinese biotechnology companies, along with consolidation among contract manufacturers.

 

In February, Lilly’s rival Novo Nordisk A/S shelled out $11 billion to buy three plants from Catalent Inc., one of the largest contract manufacturers of injectable medicines in the country.