Eli Lilly Announces $1.2B Investment in Puerto Rico for Oral Drug Manufacturing

Eli Lilly and Company has unveiled plans for a $1.2 billion investment to expand and modernize its manufacturing facility in Carolina, Puerto Rico. The investment, aimed at bolstering the company's capacity to produce oral medications, is part of Lilly's broader strategy to strengthen its domestic manufacturing capabilities.

Expansion of Puerto Rico Facility

The expansion of Lilly's existing campus, known as Lilly del Caribe, will focus on increasing production capacity for oral solid medicines, including treatments for obesity, cancer, immunology, neuroscience, and other cardiometabolic indications. The project will incorporate advanced technologies to enhance manufacturing processes.

Construction is slated to begin in 2026, with the facility expected to become operational in 2028. The expansion will create approximately 1,000 construction-related jobs and add 100 new high-tech manufacturing positions once operational.

Edgardo Hernandez, head of Lilly's manufacturing operations, emphasized the significance of the investment, 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."

Focus on Oral Weight-Loss Therapy

A key driver behind the expansion is Lilly's development of orforglipron, an oral weight-loss therapy currently awaiting FDA approval. Orforglipron, a GLP-1 receptor agonist in pill form, has shown promising results in clinical trials for both diabetes and obesity management.

In the Phase III ACHEVE-1 study, orforglipron demonstrated a 1.5% reduction in blood glucose levels (A1C) at 40 weeks in diabetes patients. The ATTAIN-2 trial revealed a 10.5% drop in body weight at 72 weeks for individuals with obesity.

Lilly plans to file for orforglipron's approval by the end of the year, with industry analysts projecting peak sales between $10 billion and $15 billion.

Broader Manufacturing Investment Strategy

The Puerto Rico expansion is part of Lilly's comprehensive plan to invest over $50 billion in its U.S. manufacturing capabilities since 2020. This includes recently announced projects such as a $5 billion API facility near Richmond, Virginia, and a $6.5 billion API production complex for oral drugs in Houston, Texas.

These investments align with a broader industry trend of pharmaceutical companies increasing their domestic manufacturing presence. Other major players, including Merck, Roche, and Johnson & Johnson, have also announced significant U.S. investments in recent months.

As the pharmaceutical landscape continues to evolve, particularly in the realm of obesity treatments, Lilly's strategic investments position the company to meet growing demand and maintain its competitive edge in the market.