Eli Lilly Invests $1.2B in Puerto Rico Facility, Bolstering Oral Drug Production Capacity

Eli Lilly and Company has announced a significant $1.2 billion investment to upgrade and expand its manufacturing facility in Carolina, Puerto Rico. The investment, part of Lilly's broader commitment to strengthen its domestic supply chain, aims to enhance the production capacity for oral medications, including the company's highly anticipated GLP-1 pill, orforglipron.

Expansion Plans and Economic Impact

The expansion of Lilly's existing campus, known as Lilly del Caribe, is expected to create 100 new high-tech manufacturing jobs upon completion. Construction is slated to begin in 2026, with the upgraded facility becoming operational in 2028. The project is also projected to generate approximately 1,000 construction-related roles during the development phase.

Edgardo Hernandez, head of Lilly's manufacturing operations, emphasized the significance of this investment, stating, "Our continued investments in capacity, infrastructure, advanced technologies and highly specialized jobs will further cement the site's significance in Lilly's global manufacturing network."

Focus on Oral Medications and GLP-1 Therapies

The expanded facility will be equipped with advanced technologies to improve the manufacturing of oral solid medicines across various therapeutic areas, including neuroscience, oncology, immunology, and cardiometabolic health. Notably, the site will play a crucial role in the production of orforglipron, Lilly's first oral GLP-1 therapy for diabetes and obesity.

Orforglipron has shown promising results in recent clinical trials. The Phase III ACHEVE-1 study demonstrated a 1.5% reduction in blood glucose levels (A1C) at 40 weeks in diabetes patients. Additionally, the ATTAIN-2 trial revealed a 10.5% drop in body weight at 72 weeks. Lilly plans to submit orforglipron for FDA approval by the end of this year, with analysts projecting peak sales between $10 billion and $15 billion.

Lilly's Broader Manufacturing Investments

The Puerto Rico expansion is part of Lilly's larger strategy to bolster its U.S. manufacturing capabilities. Since 2020, the company has committed over $50 billion to increase its domestic production capacity. Recent announcements include a $5 billion API plant near Richmond, Virginia, and a $6.5 billion API production complex for oral drugs in Houston, Texas.

These investments come amid a trend of pharmaceutical companies increasing their U.S. manufacturing presence, partly in response to potential drug import tariffs proposed by President Donald Trump. Other major players, including Merck, Roche, and Johnson & Johnson, have also announced substantial investments in U.S. manufacturing and R&D facilities.

As Lilly continues to expand its manufacturing footprint, the pharmaceutical industry watches closely, anticipating the impact of these investments on drug production, employment, and the competitive landscape in the rapidly evolving market for obesity and diabetes treatments.