Eli Lilly Invests $1.2B in Puerto Rico Facility, Boosting Oral Drug Production Capacity

Eli Lilly and Company has announced a significant $1.2 billion investment to expand and modernize its manufacturing complex in Carolina, Puerto Rico. This move is part of the company's broader strategy to enhance its domestic production capabilities, particularly for oral medications, including the highly anticipated GLP-1 pill orforglipron.

Expansion Details and Strategic Importance

The investment will focus on upgrading Lilly's existing campus, known as Lilly del Caribe, which has been operational for 60 years. The expansion aims to increase production capacity and incorporate advanced technologies for manufacturing oral solid medicines. The facility will produce drugs for various therapeutic areas, including obesity, cancer, immunology, neuroscience, and cardiometabolic conditions.

Edgardo Hernandez, head of Lilly's manufacturing operations, emphasized the strategic importance of the site, stating, "Our continued investments in capacity, infrastructure, advanced technologies and highly specialized jobs will further cement the site's significance in Lilly's global manufacturing network."

Construction is slated to begin in 2026, with the upgraded facility expected to be operational by 2028. The project will create approximately 1,000 construction-related jobs and add 100 new high-tech manufacturing positions upon completion.

Orforglipron and the Competitive Landscape

A key focus of the expanded facility will be the production of orforglipron, Lilly's oral GLP-1 agonist for weight loss and diabetes management. The drug has shown promising results in recent clinical trials, including a 1.5% reduction in blood glucose levels (A1C) at 40 weeks in the Phase III ACHEVE-1 study for diabetes, and a 10.5% drop in body weight at 72 weeks in the ATTAIN-2 trial.

Lilly plans to submit orforglipron for FDA approval by the end of 2025, entering a highly competitive market for oral weight-loss medications. The drug's peak sales forecasts range between $10 billion and $15 billion.

The oral obesity treatment landscape is rapidly evolving, with several pharmaceutical companies vying for market share:

• Novo Nordisk has already filed an application for an oral formulation of its weight-loss drug Wegovy, with an FDA decision expected by the end of 2025.
• Viking Therapeutics is testing its GLP-1/GIP agonist VK2735 in the Phase II VENTURE-Oral trial.
• Roche acquired Carmot Therapeutics for $2.7 billion in December 2023, gaining access to the once-daily pill CT-996, which has recently entered Phase II development.

Lilly's Broader Manufacturing Investment Strategy

The Puerto Rico expansion is part of Lilly's larger commitment to bolster its U.S. manufacturing capabilities. Since 2020, the company has earmarked over $50 billion for domestic production enhancements. Recent announcements include:

• A $5 billion API manufacturing facility near Richmond, Virginia
• A $6.5 billion API production complex for oral drugs in Houston, Texas

Lilly plans to reveal the locations of two additional "mega sites" in the coming months, further solidifying its position in the pharmaceutical manufacturing landscape.

This investment trend is not unique to Lilly, as other major pharmaceutical companies have also announced significant U.S. investments. Merck has committed $70 billion over five years, Roche has pledged $50 billion, and Johnson & Johnson has unveiled a $55 billion plan. These investments come amid discussions of potential tariffs on imported pharmaceuticals, with companies seeking to secure their domestic production capabilities.