Eli Lilly Expands Manufacturing Plant

By Patrick Wingrove

(Reuters) – Eli Lilly (NYSE:LLY) announced on Thursday plans to invest $3 billion to expand its manufacturing plant in Pleasant Prairie, Wisconsin, in response to increasing demand for its weight-loss and diabetes medications.

The new investment, following the acquisition of the factory from Nexus Pharmaceuticals earlier this year, aims to boost production for Lilly's weight-loss drug Zepbound and diabetes treatments.

Edgardo Hernandez, Lilly's president of global manufacturing, stated, “Today's announcement represents our single largest U.S. manufacturing investment outside our home state of Indiana and enhances our capacity for current and future medicines.”

Zepbound and the diabetes drug Mounjaro (both tirzepatide) faced shortages in the U.S. earlier this year. Although the FDA removed tirzepatide from its shortage list, it is reconsidering that decision after a lawsuit from an industry group representing compounding pharmacies.

Zepbound launched in the U.S. in late 2023, with over 5.2 million prescriptions written, according to IQVIA data.

Since 2020, Lilly has committed over $23 billion to manufacturing expansion and acquisitions, raising its planned investment in the Wisconsin site to $4 billion after this latest move.

Construction for the expansion is set to begin next year, with expected production starting by the end of 2025. The plant is anticipated to create 750 jobs in addition to the existing staff of over 100 operators, technicians, engineers, and scientists.

Meanwhile, Danish competitor Novo Nordisk (NYSE:NVO) has also committed billions to enhance manufacturing for its weight-loss drug Wegovy, acquiring three sites from contract manufacturer Catalent (NYSE:CTLT) for $11 billion.