Eli Lilly announced its plans to invest upwards of $3.5 billion to build a new injectable medicine and device manufacturing facility in Lehigh Valley, Pennsylvania, underscoring the growing importance of domestic manufacturing capacity as demand accelerates for next-generation weight-loss therapies.

The new site marks Lilly’s fourth U.S. manufacturing location to be announced since February 2025, reflecting the company’s broader effort to expand production of complex biologic medicines within the United States (1).

The facility is set to be located in Fogelsville, Pennsylvania and is expected to manufacture injectable medicines and delivery devices, including therapies in development for weight management such as retatrutide, an investigational triple hormone receptor agonist targeting GIP, GLP-1, and glucagon pathways (1).

“Our mission starts with patients and delivering the medicines they need. To meet increasing demand, we're expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines,” said David A. Ricks, Lilly chair and CEO. “We're creating high-quality jobs and collaborating across the region with suppliers, educators, and workforce-development partners to make critical medicines in the U.S.”

The Pennsylvania project fits within the company’s broader capital expansion strategy. Since 2020, Lilly has committed more than $50 billion to manufacturing investments, including new sites and expansions in the Netherlands, Virginia, and Puerto Rico (2).The investment strategy aims to bolster Lilly’s domestic medicine production across several therapeutic areas (2).

Eli Lilly’s recent investment highlights how surging interest in obesity and metabolic disease therapies are reshaping manufacturing strategies across the pharmaceutical industry, as injectable treatments continue to become central to long-term chronic care, companies remain under pressure to ensure resilient supply chains and sufficient capacity, particularly after recent shortages across the sector (1).

Why did Eli Lilly chose Lehigh Valley?

According to Eli Lilly, the Lehigh Valley location was selected from a collection of over 300 potential sites, with key factors including proximity to science and engineering universities, an established manufacturing workforce, and existing infrastructure playing a role (1). The region’s access to utilities, transportation networks, and zoning incentives also contributed to the decision.

Construction on the new facility is slated to begin in 2026, with operations anticipated to start in 2031 (1). Lilly expects the project to create an estimated 850 permanent jobs across several fields, such as engineering, scientific, operational, and laboratory roles, along with about 2,000 construction jobs during the buildout phase (1).

State and local officials framed the project as a significant economic catalyst for the Lehigh Valley, with Lilly estimating that each dollar invested could generate up to four dollars in additional local economic activity, with manufacturing jobs supporting further employment across logistics, supply chain, and service sectors.

“When we announced our Economic Development Strategy here in the Lehigh Valley two years ago, we set out to win historic, life-changing deals like the one we're announcing with Lilly today,” said Pennsylvania Governor Josh Shapiro. “Lilly's commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry.”

Lilly said the site will incorporate advanced manufacturing technologies, including artificial intelligence, machine learning, integrated monitoring systems, and data analytics, aimed at improving efficiency and ensuring a reliable supply of medicines (1). The company also plans to partner with local universities and invest in education and workforce development across Pennsylvania to support long-term talent needs.

“Lilly Lehigh Valley, our newest injectable medicine and device manufacturing facility, will increase access to next-generation weight-loss treatments and improve the domestic supply of essential medicines for current and future patients,” said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. “Our investment here is more than just building a facility, it's about building a shared future with the people and communities of the Commonwealth.”

Resources

1. Lilly selects Pennsylvania as home for its newest injectable medicine and device manufacturing facility Eli Lilly and Company January 30, 2026 https://investor.lilly.com/news-releases/news-release-details/lilly-selects-pennsylvania-home-its-newest-injectable-medicine
2. Lilly plans to more than double U.S. manufacturing investment since 2020 exceeding $50 billion Eli Lilly and Company February 26, 2025 https://investor.lilly.com/news-releases/news-release-details/lilly-plans-more-double-us-manufacturing-investment-2020