Eli Lilly Announces $6.5B Texas Facility to Meet Soaring Demand for Weight-Loss Drugs

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Eli Lilly Announces $6.5B Texas Facility to Meet Soaring Demand
The company logo etched in stone is seen at the headquarters campus of Eli Lilly and Company on March 17, 2024 in Indianapolis, Indiana. Lilly, a pharmaceutical company, employs more than 12.000 people in Indianapolis and more than 42,000 worldwide. by Scott Olson/Getty Images/Getty Images

Pharmaceutical giant Eli Lilly announced Tuesday it will invest $6.5 billion to build a new manufacturing facility in Houston, Texas, aimed at boosting production of its obesity pill, orforglipron, and other small-molecule drugs.

The move comes as demand for weight-loss treatments surges across the US.

According to Yahoo, the 236-acre plant will be located in Generation Park, just 10 miles east of George Bush Intercontinental Airport.

Construction is set to begin by the end of this year, with plans to be fully operational within five years. Once complete, the facility will create 615 full-time jobs and 4,000 construction jobs, according to the company.

"Our new Houston site will enhance Lilly's ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine's potential as a treatment for obesity and type 2 diabetes," said Eli Lilly CEO David Ricks in a statement.

He added that the pill's ease of use—without food or water restrictions—could help "tens of millions of people worldwide."

Eli Lilly Confirms Second US Site in $27B Manufacturing Push

The new plant is part of a broader expansion. In February, Eli Lilly announced it would invest $27 billion to build four new facilities in the US The Houston plant is the second confirmed location, CNBC reported.

The company said it will announce the other two sites later this year.

This expansion reflects a wider push among drugmakers to onshore production as political pressure grows to reduce reliance on foreign manufacturing.

Former President Donald Trump has promised to impose tariffs on imported drugs if reelected, saying the goal is to bring pharmaceutical jobs and production back to the US.

Eli Lilly's planned Houston site will focus on making small-molecule drugs, which typically come in pill form and are easier to manufacture than injectable treatments.

Besides orforglipron, the company plans to produce other treatments across cardiometabolic health, cancer, immunology, and neuroscience.

The project originally carried a $5.9 billion price tag when Eli Lilly applied for a tax break through the Texas Jobs, Energy, Technology and Innovation program earlier this year.

With support from Texas Governor Greg Abbott and the Sheldon Independent School District, where the facility will be built, the final green light was given this week.

CEO David Ricks emphasized that this "significant US investment" ensures faster and more secure access to life-changing medicines for millions.

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