Eli Lilly and Co (NYSE:LLY) plans to invest at least $27 billion in four new US manufacturing facilities, the company announced during an event in Washington DC.
Three of the facilities will focus on producing active pharmaceutical ingredients (APIs) for drugs like Zepbound and Mounjaro, while the fourth will expand the company's capacity for future injectable medications.
This comes as US president Donald Trump earlier this month said he planned to introduce 25% tariffs on goods including pharmaceuticals as soon as April 2.
Eli Lilly CEO David Ricks told CNN the policy environment is a “major contributor” to the drugmaker’s plans, in addition to its desire to create more manufacturing capacity and add redundancy to strengthen its supply chain.
The locations of the sites will be announced later this year, the company said. The four sites are expected to create 3,000 jobs for engineers and scientists, in addition to 10,000 construction jobs.
This brings the company’s total investment in US manufacturing to $50 billion since 2020.
Shares of Eli Lilly traded up 1.6% at 917 following the announcement.