WASHINGTON, Jan 30 (Reuters) – Eli Lilly said on Friday it would build a pharmaceutical plant in Pennsylvania, its fourth new facility, as it seeks to expand the U.S. market. Produce and strengthen medical supply chains.
The $3.5 billion plant will produce Eli Lilly’s injectable weight-loss drugs, including retarglutide, the company said in a statement. This next-generation obesity drug outperforms Eli Lilly and Company’s blockbuster drug Zepbound.
Drugmakers are rushing to expand U.S. production as President Donald Trump threatens to impose import tariffs on drugs.
Companies including Lilly, Pfizer and Merck have pledged to invest billions domestically to avoid penalties. Eli Lilly said last year it would invest more than $27 billion in four new U.S. manufacturing sites and said it would expand production at other plants.
Eli Lilly, the world’s most valuable drugmaker, has been competing with Danish rival Novo Nordisk to meet growing demand for GLP-1 weight-loss drugs. The company plans to launch its much-anticipated weight-loss drug at a cash price of $150 a month in multiple countries and is working to win U.S. approval in the coming months.
Construction at the Lehigh Valley site is expected to begin in 2026, with the plant expected to be operational in 2031, the company said.
The company said the site was chosen from more than 300 applications in part due to its proximity to the university and its existing infrastructure.
Gov. Josh Shapiro said in a statement that this is the largest investment by a life sciences company in Pennsylvania history and will create at least 850 new jobs.
(Reporting by Leah Douglas in Washington; Editing by Nick Zieminski)