Eli Lilly (LLY) Stock: Drugmaker Announces $6 Billion Alabama Plant for Obesity Pill Production

TLDR

• Eli Lilly is investing $6 billion to build a new manufacturing plant in Huntsville, Alabama, with construction starting in 2026 and completion targeted for 2032.
• The facility will produce small-molecule synthetic and peptide medicines, including orforglipron, the company’s experimental obesity pill expected to receive FDA approval in early 2026.
• This is the third new U.S. facility announced by Eli Lilly as part of a larger $27 billion expansion plan for four domestic manufacturing sites.
• The Alabama plant will create 3,000 construction jobs and 450 permanent positions for engineers, scientists, operations personnel, and lab technicians.
• The investment responds to President Donald Trump’s push for pharmaceutical companies to increase domestic production rather than importing active ingredients from abroad.

Eli Lilly announced Tuesday it will spend $6 billion to construct a new manufacturing facility in Huntsville, Alabama. The plant will focus on producing active pharmaceutical ingredients for the company’s pipeline of drugs.

The facility represents the third new U.S. manufacturing site the drugmaker has announced recently. Eli Lilly outlined plans earlier this year to spend at least $27 billion on four new domestic manufacturing locations.

Construction is scheduled to begin in 2026. The company expects the plant to be operational by 2032.

The Alabama site will manufacture small-molecule synthetic and peptide medicines. This includes orforglipron, Eli Lilly’s first oral GLP-1 weight-loss medication.

Eli Lilly and Company, LLY

The obesity pill received a priority review voucher from the FDA in November. This designation will speed up the regulatory review process to potentially just a few months.

The company anticipates FDA approval for orforglipron in early 2026. The drug represents a shift from weekly injections to a daily pill format.

Expansion Meets Production Demands

The added production capacity comes as Eli Lilly works to maintain its position in the growing weight-loss drug market. Both Eli Lilly and competitor Novo Nordisk faced supply shortages for their injection medications after demand surged in recent years.

The companies have since addressed these supply issues. The new manufacturing capacity aims to prevent similar problems with future products.

Eli Lilly has invested heavily in U.S. manufacturing since 2020. The company has committed $23 billion in previous investments before announcing the recent $27 billion expansion plan.

President Donald Trump has urged pharmaceutical companies to increase domestic production. He threatened tariffs on imported pharmaceuticals and active ingredients.

Concerns about these potential tariffs have decreased following recent drug pricing agreements with Trump. These deals exempt participating companies from the proposed levies.

Economic Impact and Workforce Plans

The Huntsville facility will bring 450 permanent jobs to Alabama. These positions include engineers, scientists, operations personnel, and lab technicians.

Construction of the plant will create approximately 3,000 temporary jobs. Eli Lilly estimates each dollar invested could generate up to four dollars in local economic activity.

Alabama Governor Kay Ivey called the project “the largest initial investment in our state’s history.” The site was selected from more than 300 applications.

Proximity to the HudsonAlpha Institute for Biotechnology influenced the location choice. The established bioscience campus supports workforce training and research needs.

The plant will incorporate machine learning, artificial intelligence, and digitally integrated monitoring systems. Automation will be embedded throughout operations.

CEO David Ricks said the investment continues the onshoring of active pharmaceutical ingredient production. This strengthens supply chain resilience and ensures reliable access to medicines for U.S. patients.

Eli Lilly plans to work toward carbon neutrality at the Alabama site. The company will announce the location of its fourth new U.S. facility in the coming weeks.

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