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Lilly plans to build a new $6.5 billion facility to manufacture active pharmaceutical ingredients in Texas

News Provided by PR Newswire2025-09-23

Lilly plans to build a new $6.5 billion facility to manufacture active pharmaceutical ingredients in Texas

[23-September-2025]

The new Houston site, Lilly's eighth U.S. manufacturing facility announced since 2020, will focus on domestic production of small molecule synthetic medicines

Company plans to create 4,615 manufacturing and construction jobs

INDIANAPOLIS, Sept. 23, 2025 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) announced today that it plans to build a new $6.5 billion manufacturing facility at Generation Park in Houston, Texas. This planned next-generation synthetic medicine active pharmaceutical product (API) facility, the second of four new U.S. sites Lilly will announce this year, will focus on manufacturing the company's pipeline of small molecule medicines across therapeutic areas, including cardiometabolic health, oncology, immunology and neuroscience. It is expected to be operational within five years.

Lilly will bring 615 new high-wage jobs to the Greater Houston area, including highly skilled engineers, scientists, operations personnel, and lab technicians. The company also expects to generate 4,000 construction jobs as the site is being built and brought online.

Importantly, the site will be among those that will manufacture orforglipron, Lilly's first oral, small molecule GLP-1 receptor agonist, which the company expects to submit to global regulatory agencies for obesity by the end of this year.

"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 metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions," said David A. Ricks, Lilly chair and CEO. "This significant U.S. investment and onshoring of our API production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future."

Earlier this year, at a press conference in Washington, D.C., Lilly announced plans to bolster its domestic medicine production across therapeutic areas by building four new pharmaceutical manufacturing sites in the United States. The company recently announced its intended site in Virginia and plans to announce two remaining locations this year.

Expanding Lilly's U.S. manufacturing footprint in Texas will boost the Houston economy. For every dollar Lilly spends in the area, Lilly estimates up to an additional four dollars in local economic stimulation. Additionally, for every job created in manufacturing, several more will be created in related sectors such as supply chain, logistics and retail.

"Texas is the economic engine of America because we foster innovation and empower businesses to succeed," said Governor Greg Abbott. "Texas is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation's history and provide good, high-paying jobs to hardworking Texans. With our highly skilled workforce, low taxes, and world-class, business-friendly climate, Texas is the best place for companies like Lilly to grow. This $6.5 billion facility will not only bolster Houston's economy, it will boost our life sciences sector and help cement Texas as a global leader in health care innovation."

Lilly plans to use state-of-the-art technologies including machine learning, AI, digitally integrated systems and advanced data analytics to drive right-first-time execution. Digital automation will be embedded throughout the site to streamline operations and ensure a reliable supply of safe, high-quality medicines. To achieve this, the company will collaborate with local universities and invest in educational initiatives across Texas to build a strong pipeline of talent.

"With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the U.S. and setting a new global benchmark for innovation and technical leadership in our industry," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. "Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work."

Lilly selected Generation Park, a commercial development in the Lake Houston area northeast of the city, from more than 300 applications based on criteria including workforce potential, local incentives, access to utilities and transportation and a favorable business environment. The capital investment and job figures announced by Lilly today exceed the company's initial commitments in the Texas incentive process submission, highlighting the crucial role this new site will play in enhancing Lilly's capacity to deliver medicines to people in the U.S. and globally.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. C-LLY

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Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) including about planned capital investments in new manufacturing capacity, production of medicines, hiring and related initiatives and reflects Lilly's current beliefs and expectations. However, as with any such undertaking, there are substantial risks and uncertainties in the manufacturing process, development and commercialization of pharmaceutical products any of which could impact the overall commercial success of our products, and as related to cost, completion timing, expected capacity, personnel, and other factors which could impact expected benefits of the capacity expansion and related initiatives. For further discussion of risks and uncertainties relevant to Lilly's business that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.