Eli Lilly to Manufacture New Weight-Loss Drug in US, Pledges $27 Billion Investment

Eli Lilly has announced plans to produce its investigational oral obesity drug, orforglipron, domestically in the United States. This decision comes on the heels of promising Phase III trial results and amid increasing pressure from the US government to reshore pharmaceutical manufacturing operations.

Orforglipron Shows Promising Results in Phase III Trial

Eli Lilly recently revealed that orforglipron demonstrated significant efficacy in a Phase III trial for type 2 diabetes patients. The drug reduced blood sugar levels, lowering A1C by 1.5% at 40 weeks compared to 0.1% in the placebo group. Additionally, orforglipron showed impressive weight loss results, with patients experiencing a 7.9% reduction in body weight versus 1.6% in the placebo arm.

Analysts from BMO Capital Markets praised the results, noting that Lilly has achieved its goal of reaching "injectable-like efficacy from oral orforglipron." While the drug's safety profile was generally described as "clean," some concerns were raised regarding side effects such as vomiting and nausea.

US Manufacturing Plans and Investment

In response to recent pressure from the US government, Eli Lilly CEO David Ricks announced the company's commitment to domestic production. During an interview on Fox Business, Ricks stated, "We're [going to] make this medicine here in the United States. We're building the largest... [active pharmaceutical ingredient] factory... in history in the country."

This manufacturing decision is part of a larger $27 billion investment Eli Lilly has pledged for its US operations. The investment will fund the construction of four new manufacturing facilities over the next five years, creating an estimated 3,000 new jobs for engineers and scientists, as well as 10,000 construction-related opportunities.

Industry-Wide Trend Towards US Manufacturing

Eli Lilly's move reflects a broader trend in the pharmaceutical industry, as companies respond to potential tariff threats from the US government. In February, President Donald Trump warned several pharma leaders, including Eli Lilly's CEO, of hefty tariffs on their products if they failed to reshore manufacturing operations.

Other major pharmaceutical companies have followed suit:

• Johnson & Johnson announced a $55 billion investment in its domestic manufacturing operations.
• Novartis pledged a $23 billion boost to its US presence.

These investments have been welcomed by US officials, with Commerce Secretary Howard Lutnick praising Eli Lilly's commitment as "exactly what [Trump] was hoping would happen."

Future Plans for Orforglipron

While the recent Phase III trial focused on type 2 diabetes, Eli Lilly has broader ambitions for orforglipron. CEO David Ricks revealed that the company expects the drug's first indication to "be in chronic weight management." Lilly plans to submit the drug to the FDA by the end of the year, with a potential launch in 2026.

Ricks also mentioned plans to study orforglipron in "dozens" of other chronic conditions related to weight, including heart attack, inflammation, and joint pain. This expanded research pipeline could potentially position orforglipron as a versatile treatment option across multiple indications.