Eli Lilly and Company announced today that it plans to build a new USD 6.5 Billion manufacturing facility at Generation Park in Houston, Texas. This planned next-generation synthetic medicine Active Pharmaceutical Ingredient (API) facility, the second of four new US sites Lilly will announce this year, will focus on manufacturing the company's pipeline of small molecule medicines across therapeutic areas, including cardiometabolic health, oncology, immunology and neuroscience. It is expected to be operational within five years.

Lilly will bring 615 new high-wage jobs to the Greater Houston area, including engineers, scientists, operations personnel and lab technicians. The company also expects to generate over 4,000 construction jobs as the site is being built and brought online.

The site will be among those that will manufacture Orforglipron, Lilly's first oral, small-molecule GLP-1 receptor agonist, which the company expects to submit to global regulatory agencies for obesity by the end of this year.

Speaking in this regard, David A Ricks, Chair and Chief Executive Officer (CEO), Lilly, said, "Our new Houston site will enhance Lilly's ability to manufacture Orforglipron at scale and, if approved, help fulfill the medicine's potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions. This investment and onshoring of our API production capabilities will ensure faster, more secure access to Orforglipron and to other life-changing medicines of the future."

Earlier this year, at a press conference in Washington, DC, Lilly announced plans to bolster its domestic medicine production across therapeutic areas by building four new pharmaceutical manufacturing sites in the US. The company recently announced its intended site in Virginia and plans to announce two remaining locations this year.

Expanding Lilly's US manufacturing footprint in Texas will boost the Houston economy. For every dollar Lilly spends in the area, it estimates up to an additional four dollars in local economic stimulation. Additionally, for every job created in manufacturing, several more will be created in related sectors such as supply chain, logistics and retail.

Greg Abbott, Governor, Texas, said, "Texas is the economic engine of America because we foster innovation and empower businesses to succeed. It is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation's history and provide jobs to Texans. With our skilled workforce, low taxes and business-friendly climate, Texas is the best place for companies like Lilly to grow. This USD 6.5 Billion facility will not only bolster Houston's economy, it will boost our life sciences sector and help cement Texas as a global leader in healthcare innovation."

Lilly plans to use state-of-the-art technologies including Machine Learning (ML), Artificial Intelligence (AI), digitally integrated systems and advanced data analytics to drive right-first-time execution. Digital automation will be embedded throughout the site to streamline operations and ensure a reliable supply of safe, high-quality medicines. To achieve this, the company will collaborate with local universities and invest in educational initiatives across Texas to build a strong pipeline of talent.

Edgardo Hernandez, Executive Vice President and President, Lilly Manufacturing Operations, said, "With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the US and setting a new global benchmark for innovation and technical leadership in our industry. Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work."

Lilly selected Generation Park, a commercial development in the Lake Houston area northeast of the city, from more than 300 applications based on criteria including workforce potential, local incentives, access to utilities and transportation and a favourable business environment. The capital investment and job figures announced by Lilly today exceed the company's initial commitments in the Texas incentive process submission, highlighting the crucial role this new site will play in enhancing Lilly's capacity to deliver medicines to people in the US and globally.