Major boost for weight loss drug customers as manufacturer to ramp up production

DRUG company Eli Lilly has announced plans to expand the manufacturing of two major medications.

The company plans to invest over $5 billion into Indiana manufacturing in order to produce more of its popular weight loss and diabetes medications, Zepbound and Mounjaro.

This multi-billion dollar investment is nearly doubling Eli Lilly’s initial promise according to its announcement on Friday.

According to the company, this is the single largest investment in drug manufacturing made by the company since the 19th century.

In total Eli Lilly is investing about $9 billion with this most recent $5.3 billion added to the $3.7 billion.

“Today’s announcement tops the largest manufacturing investment in our company’s history and, we believe, represents the single largest investment in synthetic medicine API manufacturing in U.S. history,” said David Ricks chair and CEO.

“This multi-site campus will make our latest medicines, including Zepbound and Mounjaro, support pipeline growth and leverage the latest technology and automation for maximum efficiency, safety and quality control.

“Importantly, we are investing in our home state of Indiana, creating high-wage, advanced manufacturing, engineering and science jobs for hundreds of current and future Hoosier families.”

Near the company’s Indianapolis headquarters, the manufacturing site will take some time before it produces the drugs at maximum output.

The Lebanon, Indiana manufacturing site broke ground last year, but is not slated to begin actually producing products until 2026.

Two years out, in 2028, the site is slated to increase production to a higher output.

But it is not the two drugs themselves that the company plans to produce, it is the main active ingredient necessary for both Zepbound and Mounjaro.

Tirzepatide is the main ingredient found in both drugs, with some slight changes allowing them to be branded differently and sold under their commercial names.

Zepbound only received FDA approval as a weight loss drug in 2023, but combined with Mounjaro then accounted for much of the company’s revenue.

At $2 billion in sales in this year’s first quarter, the two drugs bring in massive profit for Eli Lilly.

The company has struggled to keep up with demand, a likely explanation for its increased investment plans.

Danish drugmaker Novo Nordisk, Eli Lilly’s market rival, has faced similar difficulties in keeping up with customer demand.

Now it appears there is a race to corner the market based on who can increase their output the fastest.

Zepbound and Mounjaro are predicted to eventually generate over $30 billion in combined annual revenue for Eli Lilly.

In the immediate, the company’s stock value increased to $809.70 following the announcement.

MORE THAN LILLY PROFITS

But the company has plans to do more than just bolster its own economy.

“Lilly continues to play a transformational role in shaping Indiana’s opportunity economy, and I couldn’t be more proud about their pole position leadership in developing the LEAP Research and Innovation District in Lebanon, Indiana,” said Indiana Governor Eric J. Holcomb.

“Lilly has long been driving global innovation and economic growth that will be felt for decades here at home.”

According to the company’s press release, the state is partnering with Eli Lilly on both infrastructure and employment initiatives.

The state will be working to improve roads, water, electric, and other utilities while also sponsoring workforce development projects like incentive programs.

Part of this investment will be allocated to a LEAP learning center that will partner with scholarship and training programs alongside Purdue University and Ivy Tech Community College.

“Lilly’s commitment to meeting the demand for our life-changing medicines goes beyond buildings and extends to improving education opportunities and upskilling a global workforce of the future,” said Edgardo Hernandez, executive vice president and president of Eli Lilly Manufacturing Operations.

“Academia is a critical partner to both industry and government as we work together to advance innovation in our state and communities around the globe.”