Eli Lilly to Invest $3 Billion in Facility Expansion in Wisconsin
Eli Lilly announced on Thursday that it will make a substantial investment of $3 billion to expand a manufacturing facility it recently acquired in Pleasant Prairie, Wisconsin. The expansion aims to increase production capacity for the highly demanded weight loss drug Zepbound, as well as diabetes treatments and other medications.
The pharmaceutical giant had purchased the facility earlier this year from Nexus Pharmaceuticals and is now seeking to boost production capacity to meet high demand for these drugs. This investment represents the company's largest manufacturing commitment outside its main headquarters in Indiana and is expected to significantly enhance the production of both existing and future medical products.
Lilly's Global Manufacturing President, Edgardo Hernandez, emphasized the strategic importance of this investment, stating, "Today's announcement represents our largest manufacturing investment in the U.S. outside our home state of Indiana and will enhance our ability to expand capacity for both our current and future pharmaceutical portfolio."
The shortage of Zepbound and tirzepatide, the chemical name for Lilly's diabetes drug Mounjaro, has posed a challenge in the U.S. market. Although the FDA removed tirzepatide from its shortage list earlier this year, a lawsuit filed by an industry group has prompted a reevaluation of that decision. Since its launch at the end of 2023, Zepbound has seen over 5.2 million prescriptions, highlighting the increasing need for production.
Lilly's investments in its manufacturing facilities have exceeded $23 billion since 2020. The total planned investment for the Wisconsin facility currently stands at $4 billion, which includes costs for the facility purchase, land, and adjacent warehouse.
With a market value exceeding $790 billion, Lilly is now the world's most valuable health company. Construction of the expanded facility is set to begin next year, with production anticipated to start by the end of 2025. The expansion is expected to create 750 new job opportunities in addition to the existing workforce of over 100 at the Wisconsin facility.
This move reflects industry trends, with competitors like Novo Nordisk also making significant investments in production to meet demand for weight loss drugs. Earlier this year, Novo Nordisk acquired three facilities from Catalent for $11 billion to ramp up supply of its weight loss medication Wegovy.