Eli Lilly and Co. (NYSE:LLY) announced plans to invest over $5 billion to expand its manufacturing site in Indiana, aiming to increase production of its popular weight-loss and diabetes treatments, Zepbound and Mounjaro.
The pharmaceutical company stated on Friday that it would more than double its investment in the site near its Indianapolis headquarters. However, it will take some time before the new facilities become operational. The company began construction on its Lebanon, Indiana, plant last year and expects production to commence by late 2026, with an increase through 2028.
Eli Lilly is adding $5.3 billion to the previously allocated $3.7 billion for the site. According to company officials, this represents the largest manufacturing investment in the company’s history, which dates back to the 19th century.
The expanded site will produce tirzepatide, the key ingredient in both Mounjaro and Zepbound. Zepbound, a weight-loss treatment, received U.S. regulatory approval last fall. Together, the two drugs generated over $2 billion in sales in the first quarter of this year.
Despite strong demand, Eli Lilly has faced challenges in meeting supply needs, similar to its competitor Novo Nordisk (NYSE:NVO), which produces the popular weight-loss drug Wegovy. Company officials anticipate some manufacturing increases starting in the latter half of this year.
Analysts project that Zepbound and Mounjaro could eventually bring in well over $30 billion in combined annual sales for Eli Lilly, according to data from FactSet.
Shares of Eli Lilly rose slightly to $809.70 on Friday morning, aligning with the S&P 500 index.
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