Lilly Increases Investment at Indiana Site to $9 Billion to Boost API Production for Weight Loss & Diabetes
The Indianapolis-based drugmaker has announced it will increase its investment at its newest, 600-acre Lebanon, Indiana, site by $5.3 Bn, where it will make tirzepatide, the API used for its type-2 diabetes drug Mounjaro and obesity treatment Zepbound. In a press release, the company claimed it was the ‘largest investment in active pharmaceutical ingredient manufacturing of synthetic medicines in U.S. history’, and that it is part of a $16 Bn investment the company has committed since 2020 to manufacturing sites across the U.S. and Europe.
Lilly has leaned on CDMO Catalent to provide fill/finish for Mounjaro and Zepbound. Novo has made an upfront payment of $11 Bn to acquire three of Catalent’s fill/finish sites, including the CDMOs flagship facility in Bloomington, Indiana.
Eli Lilly and Company announced today that it has more than doubled its investment in its Lebanon, Indiana, manufacturing site with a new $5.3 billion commitment, increasing the company's total investment in this site from $3.7 billion to $9 billion. This expansion will enhance Lilly's capacity to manufacture active pharmaceutical ingredients (API) for Zepbound® (tirzepatide) injection and Mounjaro® (tirzepatide) injection so that more adults with chronic diseases like obesity and type 2 diabetes may benefit from these important treatments.
Since 2020, Lilly has committed more than $16 billion to develop new manufacturing sites in the U.S. and Europe. New locations outside Indiana include Research Triangle Park and Concord, North Carolina; Limerick, Ireland; and Alzey, Germany. Separately, the company has invested an additional $1.2 billion to update existing manufacturing facilities in Indianapolis and recently acquired an injectable manufacturing facility in Pleasant Prairie, Wisconsin, from Nexus Pharmaceuticals. Together, these manufacturing investments total more than $18 billion.
"Today's announcement tops the largest manufacturing investment in our company's history and, we believe, represents the single largest investment in synthetic medicine API manufacturing in U.S. history," said David A. Ricks, Lilly's chair and CEO. "This multi-site campus will make our latest medicines, including Zepbound and Mounjaro, support pipeline growth and leverage the latest technology and automation for maximum efficiency, safety and quality control. Importantly, we are investing in our home state of Indiana, creating high-wage, advanced manufacturing, engineering and science jobs for hundreds of current and future Hoosier families."
Lilly embarked on a significant manufacturing expansion in 2020, driven by the research results for tirzepatide. The company made this strategic investment decision at risk so that upon the approval of Mounjaro (2022) and Zepbound (2023), it could make these medicines available to adults living with type 2 diabetes and obesity, respectively. Since then, the strong demand for these medicines – the only approved treatments activating two incretin hormone receptors, GIP and GLP-1 – underscores the urgent unmet need for treatments in both type 2 diabetes and obesity.
As part of this additional investment in the Lebanon site, located within Indiana's LEAP Research and Innovation District, Lilly expects to add 200 full-time jobs for highly skilled workers such as engineers, scientists, operating personnel and lab technicians, resulting in an estimated 900 full-time employees when the facility is fully operational. Additionally, there will be more than 5,000 construction jobs during the site's development.
"Lilly continues to play a transformational role in shaping Indiana's opportunity economy, and I couldn't be more proud about their pole position leadership in developing the LEAP Research and Innovation District in Lebanon, Indiana. Lilly has long been driving global innovation and economic growth that will be felt for decades here at home," said Indiana Governor Eric J. Holcomb. "As an international company, headquartered in Indiana, Lilly had a world of options to consider before making this investment, and choosing Indiana once again reinforces the incredible environment we've cultivated and the talented workforce we have to carry Lilly's success forward. I can't wait to see the incredible benefits this investment leads to for patients around the world, knowing they were made in Indiana."
To support Lilly's expansion project, the state will partner on infrastructure solutions – road improvements, water, electric and other utilities – as well as workforce development commitments and certain economic incentives tied to the company's achievement of investment and employment goals. The state's workforce development support includes the contribution of land, pending approval, for the construction of a learning and training center that will be part of the larger LEAP industrial development, along with a commitment to work with Lilly to raise capital for its completion. The new training center aligns with Lilly's previously announced financial support for scholarship and training programs with Purdue University and Ivy Tech Community College, and the BioCrossroads-led training center at 16 Tech – part of Indiana's recent Tech Hub designation.
"Lilly's commitment to meeting the demand for our life-changing medicines goes beyond buildings and extends to improving education opportunities and upskilling a global workforce of the future," said Edgardo Hernandez, executive vice president and president, Lilly Manufacturing Operations. "Academia is a critical partner to both industry and government as we work together to advance innovation in our state and communities around the globe."
Since breaking ground at its Lebanon manufacturing site in 2023, Lilly has transformed a significant portion of the nearly 600 acres within the complex into an active construction site. The company expects to begin making medicines in Lebanon toward the end of 2026 – with operations scaling up through 2028.
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