Pharma giant Eli Lilly and Company

announced plans

to invest more than US$3.5 billion in a manufacturing site in Lehigh Valley, Pennsylvania. The site is designed to bolster the company’s footprint in GLP-1 therapies and will specifically support the production of retatrutide, an investigational drug used for weight loss and Type 2 diabetes. The facility will produce injectable medicine and device manufacturing.

The facility marks the fourth such site Lilly has announced since February 2025, when it

telegraphed its intentions

to bolster its US manufacturing footprint to a total of $50 billion since 2020.

The facility will introduce 850 jobs to the region, including scientists, engineers, operations personnel, and technicians. The company expects to begin building later this year, supporting 2,000 construction workers during the project. Lilly expects to begin operations at the site in 2031.

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Lilly selected the Lehigh Valley site from more than 300 applications, choosing it in part because of its proximity to STEM universities and a robust technical manufacturing economy and infrastructure. The company plans to partner with local universities and invest in education across the state in order to develop talent.

The facility will leverage advanced technologies including AI, machine learning, data analytics, and integrated monitoring. AI integration has become a major industrywide conversation point as companies grapple with how best to

harness and regulate

emerging technologies.

"Lilly Lehigh Valley – our newest injectable medicine and device manufacturing facility – will increase access to next-generation weight-loss treatments and improve the domestic supply of essential medicines for current and future patients," said Edgardo Hernandez, EVP and president of Lilly Manufacturing Operations. "Our investment here is more than just building a facility. It’s about building a shared future with the people and communities of the Commonwealth."

"This multi-billion dollar investment in the Lehigh Valley is a powerful testament to Pennsylvania's leadership in life sciences and advanced manufacturing," added Pennsylvania Senator Dave McCormick.

Lilly is one of many major pharma companies to invest in US manufacturing since the beginning of 2025. Other big companies such as

AstraZeneca

,

Novartis

, and

Fujifilm

have similarly shored up domestic production. In our conversation earlier this month with Lars Petersen, president and CEO of Fujifilm Biotechnologies, he mentioned

the big impact

of GLP-1 therapies on domestic manufacturing, along with the US administration’s push to

enact more tariffs

.

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