Eli Lilly Announces Plan To Construct New $6.5B Facility In Texas

Eli Lilly and Company (LLY) announced on Tuesday that it plans to construct a new $ 6.5 billion manufacturing facility in Texas as part of its efforts to expand domestic medicine production.

The new facility, located at Generation Park in Houston, marks the second of four new U.S. sites that Lilly intends to announce this year.

The company stated that the Houston facility will be operational within five years and will focus on manufacturing the company's pipeline of small molecule medicines across various therapeutic areas, including cardiometabolic health, oncology, immunology, and neuroscience. The company also said that the site will be among those that manufacture its much-awaited oral obesity drug Orforglipron. Lilly expects to make regulatory submissions for Orforglipron in the treatment of 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 CEO David A Ricks.

According to Lilly, the new facility will bring 615 new high-wage jobs to the Greater Houston area, including engineers, scientists, and lab technicians, in addition to 4,000 construction jobs. On Stocktwits, retail sentiment around LLY stock stayed within ‘bearish’ territory while message volume fell from ‘normal’ to ‘low’ levels.

In February, Lilly announced its plans to bolster its domestic medicine production by building four new pharmaceutical manufacturing sites in the U.S., bringing the company’s total U.S. capital expansion commitments to more than $50 billion since 2020.

While three of the facilities will focus on manufacturing active pharmaceutical ingredients, reshoring critical capabilities of small molecule chemical synthesis, and further strengthening Lilly's supply chain, the fourth will extend the company's global parenteral manufacturing network for future injectable therapies, the company had said.

Last week, the company also announced plans for a $5 billion manufacturing facility in Virginia.

LLY stock is down 3% this year and approximately 19% over the past 12 months. 

Read also: Ionis Pharma Stock Rises After Multiple Price Target Hikes On Heels Of Positive Study Results In Alexander Disease

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