Eli Lilly To Set Up $5B Facility In Virginia – More Details Inside

Eli Lilly and Company (LLY) announced on Tuesday that it plans to build a $5 billion manufacturing facility in Virginia as it seeks to expand domestic medicine production.

The new facility will be located west of Richmond in Goochland County and will develop active pharmaceutical ingredients (API) in the U.S. for cancer, autoimmune diseases, and other advanced therapies. The company also said that the new site will boost its domestic manufacturing of antibody-drug conjugates, a targeted therapy designed to deliver medicines directly to diseased cells.

The facility is expected to be completed within the next five years, creating 2,450 high-wage manufacturing and construction jobs. This includes 650 high-paying jobs, including engineers, scientists, operations personnel, and lab technicians, in addition to 1,800 construction jobs.

The company also stated that it intends to announce three additional U.S. manufacturing sites this year and to begin producing medicines at these four facilities within five years.

Shares of LLY traded nearly 2% higher at the time of writing. On Stocktwits, retail sentiment around LLY stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at '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.

The facility in Virginia is the first to be announced among the four facilities.

Pharma companies have been boosting U.S. investment under pressure from the Trump administration. Last month, Trump said that he would initially impose small tariffs on pharma imports, which would eventually reach 250%.

LLY stock is down 1% this year and approximately 18% over the past 12 months.

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