Eli Lilly (NYSE:LLY) announced it will invest over $5 billion to expand its manufacturing site in Indiana to increase production of its popular weight-loss and diabetes treatments, Zepbound and Mounjaro.
On Friday, the pharmaceutical giant stated it is more than doubling its investment in a site near its Indianapolis headquarters. The new plant, located in Lebanon, Indiana, began construction last year, with production expected to start by the end of 2026 and ramping up through 2028.
Eli Lilly will add $5.3 billion to the previously allocated $3.7 billion for the site, marking the largest manufacturing investment in the company’s history, which dates back to the 19th century. The site will produce tirzepatide, the active ingredient in both Mounjaro and Zepbound.
Zepbound, a weight-loss treatment, received U.S. regulatory approval last fall. Together with Mounjaro, the drugs generated over $2 billion in sales in the first quarter of this year.
Despite the strong demand, Eli Lilly has struggled to keep up with production, similar to its competitor Novo Nordisk (NYSE:NVO), which manufactures the popular weight-loss drug Wegovy.
Company officials have indicated that some manufacturing increases are expected to start in the latter half of this year.
Analysts predict that Zepbound and Mounjaro could eventually generate well over $30 billion in combined annual sales for Eli Lilly, according to data from FactSet.
Shares of Eli Lilly and Co. rose slightly to $809.70 on Friday morning, in line with the S&P 500 index.
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