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Eli Lilly Announces $6 Billion Manufacturing Plant in Huntsville, Alabama, Bolstering Obesity Drug Production
Huntsville, AL – Pharmaceutical giant Eli Lilly announced a substantial investment of $6 billion to construct a new manufacturing facility in Huntsville, Alabama. This strategic move aims to significantly increase the production of its highly anticipated experimental obesity pill, orforglipron, alongside other crucial medications.
This new Alabama plant marks the third facility in a series of planned U.S. investments by the drugmaker. Earlier this year, Eli Lilly committed at least $27 billion to establish four new domestic manufacturing sites, building upon $23 billion in prior investments since 2020.
Construction on the Huntsville plant is projected to commence in 2026, with an anticipated completion date of 2032. Eli Lilly CEO David Ricks stated in a release, “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.”
The expanded production capacity for orforglipron is paramount as Eli Lilly accelerates its efforts to seek regulatory approval and maintain its leading position in the rapidly expanding market for GLP-1 drugs. Both Eli Lilly and its primary competitor, Novo Nordisk, have previously encountered supply challenges for their existing weekly injectable treatments due to a surge in U.S. demand in recent years, though these issues have since been largely resolved.
In a significant development, Eli Lilly’s orforglipron received a priority review voucher from the Food and Drug Administration in November. This designation is expected to considerably expedite the FDA’s evaluation process, potentially reducing the assessment period to just a few months.
The push by pharmaceutical companies to enhance U.S. production has been influenced by past threats from former President Donald Trump regarding tariffs on imported pharmaceuticals. However, concerns about these potential tariffs have somewhat diminished following recent drug pricing agreements with Trump, which have exempted companies from such levies.
Eli Lilly anticipates that the new Alabama facility will create 450 jobs in the region, encompassing roles for engineers, scientists, operations personnel, and lab technicians. Additionally, the construction phase is expected to generate 3,000 temporary jobs.