Eli Lilly to build $6.5B API manufacturing facility in Texas

Continuing its multi-year investment in new U.S. pharmaceutical manufacturing sites, Eli Lilly on Tuesday announced it will build a $6.5 billion active pharmaceutical ingredient (API) facility at Generation Park in Houston, Texas.

Expected to be operational within five years, the site in a commercial development in the Lake Houston area northeast of the city will focus on domestic production of small molecule synthetic medicines, including the manufacture of the drugmaker’s first oral, small molecule GLP-1 receptor agonist — orforglipron.

“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale,” CEO Dave Ricks said in the announcement, which noted that the company plans to submit the investigational GLP-1 pill to global regulatory agencies for approval in obesity by the end of 2025.

Since 2020, Lilly says it has committed more than $55 billion globally to grow its manufacturing capacity, with more than $50 billion in the U.S. The new Houston site, Lilly's eighth U.S. manufacturing facility announced over the past five years, will focus on small molecule medicines to treat cardiometabolic, oncology, immunology and neuroscience disorders, according to the announcement.

“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.” Ricks said.

In February, Lilly announced a $27 billion investment to build four new U.S. pharmaceutical manufacturing sites — three for APIs and one to manufacture injectable products and devices. Last week, the drugmaker said it plans to construct a $5 billion API manufacturing facility near Richmond, Virginia, which is meant to boost its domestic production for cancer, autoimmune, and other advanced therapies. Lilly expects to announce the other two site locations in 2025.

Building the Houston manufacturing facility and bringing it online will create 4,000 construction jobs, while generating 615 new “high-wage” jobs including highly skilled engineers, scientists, operations personnel and lab technicians, the company said.

“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,” according to Tuesday’s announcement. “Digital automation will be embedded throughout the site to streamline operations and ensure a reliable supply of safe, high-quality medicines.”