Eli Lilly to build $6 billion manufacturing plant in Alabama to help make upcoming obesity pill, other drugs

Eli Lilly to build  billion manufacturing plant in Alabama to help make upcoming obesity pill, other drugs


Eli Lilly CEO David A. Ricks speaks at a press conference at Generation Park in Houston, Monday, Sept. 23, 2025. The company announced plans for a $6.5 billion biomanufacturing plant in north Houston. (Raquel Natalicchio/Houston Chronicle via Getty Images)

Raquel Natalicchio | Houston Chronicle | Getty Images

Eli Lilly on Tuesday said it will spend $6 billion to build a manufacturing plant in Huntsville, Alabama, to help boost production of its closely watched experimental obesity pill and other drugs. 

It is the third facility in a string of new planned U.S. investments by the drugmaker. Eli Lilly announced in February that it would spend at least $27 billion to build four new domestic manufacturing plants, adding to $23 billion in previous investments since 2020.

The company said it expects construction of the Alabama plant to start in 2026 and for it to be completed in 2032. 

“Today’s investment continues the onshoring of active pharmaceutical ingredient (API) production, strengthening supply chain resilience and reliable access to medicines for patients in the U.S.,” said Eli Lilly CEO David Ricks in a release. 

That added production capacity for Eli Lilly’s obesity pill, orforglipron, is crucial as the company races to file for its approval and tries to maintain its dominance in the booming market for GLP-1s. The company and its chief rival, Novo Nordisk, faced supply shortages for their existing weekly injections after demand skyrocketed in the U.S. in recent years, though they have managed to alleviate those issues.

Eli Lily’s pill in November won a priority review voucher from the Food and Drug Administration, which will significantly speed up the regulator’s assessment of the drug to potentially a few months. 

Drugmakers have been scrambling to boost their production in the U.S. after threats by President Donald Trump to impose tariffs on pharmaceuticals imported into the U.S. But concerns about those potential tariffs have eased following recent drug pricing deals with Trump that exempt companies from the levies.

Eli Lilly said the Alabama site will bring 450 jobs to the area, including engineers, scientists, operations personnel and lab technicians, as well as 3,000 construction jobs. 



Source

Eli Lilly investors shouldn’t sweat rival Novo Nordisk having the first obesity pill on sale
Health

Eli Lilly investors shouldn’t sweat rival Novo Nordisk having the first obesity pill on sale

Jim Cramer says don’t sweat Novo Nordisk’s head start over Club holding Eli Lilly in the obesity pill market. Eli Lilly stock slipped about half a percent this morning, while Novo Nordisk shares surged more than 8% after becoming the first to secure FDA approval for a GLP-1 weight-loss pill. “[Novo] got approval ahead of […]

Read More
FDA approves first GLP-1 pill for obesity from Wegovy maker Novo Nordisk
Health

FDA approves first GLP-1 pill for obesity from Wegovy maker Novo Nordisk

The logo of pharmaceutical company Novo Nordisk is displayed in front of its offices in Bagsvaerd, on the outskirts of Copenhagen, Denmark, Nov. 24, 2025. Tom Little | Reuters The U.S. Food and Drug Administration on Monday approved the first-ever GLP-1 pill for obesity from Wegovy maker Novo Nordisk, a landmark decision that health experts […]

Read More
UnitedHealth Group commits to improvements after independent audit, patient backlash
Health

UnitedHealth Group commits to improvements after independent audit, patient backlash

UnitedHealthcare sign is displayed at its office building in Minnetonka, Minnesota, U.S., Dec. 11, 2025. Tim Evans | Reuters UnitedHealth Group on Friday released the first results from a sprawling independent audit of its business practices and committed to a wide range of steps to track and implement improvements in three specific areas. The health-care […]

Read More