Eli Lilly, the maker of blockbuster weight loss and diabetes drugs Zepbound and Mounjaro, plans to invest an additional $27 billion to build four new manufacturing plants in the United States. The move is aimed at shoring up domestic manufacturing amid President Donald Trump’s threat to impose tariffs on pharmaceuticals.
The new plants will produce active pharmaceutical ingredients and injectable products, with three sites focusing on the foundational materials of medicines and the fourth on making injectable medications. Eli Lilly wants to create more manufacturing capacity and add redundancy to its supply chain.
This move comes as Trump has announced plans to impose 25% tariffs on goods including pharmaceuticals starting as early as April 2. In response, Apple recently invested $500 billion to expand US facilities after Trump announced 10% tariffs on imports from China.
According to CEO David Ricks, the company’s decision is driven by concerns about the policy environment and the need for more manufacturing capacity. If the Tax Cuts and Jobs Act policies aren’t extended, Ricks said they would have to re-evaluate their plans.
Eli Lilly’s investment will create 13,000 jobs in manufacturing and construction, adding to the company’s existing US manufacturing sites. The new plants are expected to start producing medicines within five years and will support the development of new medications for various conditions.
Ricks emphasized that controlling obesity is crucial for improving health outcomes, citing the success of Zepbound and Mounjaro. However, he also noted that the FDA has approved these medicines for adults aged 12 and above, not children.
As tensions between the Trump administration and the pharmaceutical industry continue to rise, Eli Lilly’s decision highlights the importance of domestic manufacturing in ensuring access to essential medicines.
Source: https://edition.cnn.com/2025/02/26/health/eli-lilly-manufacturing-investment/index.html