Eli Lilly on Tuesday announced plans to invest $6.5 billion to build a state-of-the-art manufacturing facility in Houston, Texas, aimed at expanding production of the company’s growing portfolio of small molecule drugs, including its high-profile experimental obesity pill, orforglipron. The move represents the second in a series of four new U.S. manufacturing plants that the company has planned, all of which are expected to begin operations within five years.
This Houston facility is a critical step for Eli Lilly as it positions itself in the competitive and rapidly expanding market for GLP-1 therapies, a class of drugs used to treat obesity and type 2 diabetes. The added production capacity for orforglipron is particularly important as the company accelerates efforts to bring the pill to market while maintaining supply reliability amid soaring demand. Eli Lilly and rival Novo Nordisk have previously faced constraints with their existing injectable GLP-1 medications, which have become increasingly popular across the United States.
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as an obesity and type 2 diabetes treatment for tens of millions of people worldwide who prefer the convenience of a pill that does not require food or water restrictions,” said Eli Lilly CEO David Ricks in a statement.
The Houston plant will not only produce orforglipron but will also support manufacturing across the company’s small molecule drug pipeline, covering therapeutic areas such as cardiometabolic health, oncology, immunology, and neuroscience. Small molecule drugs—typically administered in pill form—offer patients greater convenience compared with injectable medications and are generally less costly and easier to produce at scale.
This investment comes as part of Eli Lilly’s broader commitment to domestic production. In February, the company announced a $27 billion investment to build four new U.S. manufacturing plants, complementing $23 billion in domestic investments made since 2020. The company plans to reveal the locations of the remaining two plants later this year.
Beyond its strategic importance for drug production, the Houston facility is expected to generate substantial economic impact for the region. The plant will create approximately 615 permanent jobs for highly skilled personnel, including engineers, scientists, lab technicians, and operations staff, alongside an estimated 4,000 construction jobs during the building phase.
Eli Lilly’s decision to expand U.S. manufacturing also comes amid political pressure to reshore pharmaceutical production. President Donald Trump has proposed tariffs on imported drugs to encourage companies to invest in domestic facilities, following a decade of declining domestic drug manufacturing. The new Houston site underscores Eli Lilly’s commitment to growing its domestic footprint while addressing both global demand for its pipeline medicines and logistical challenges posed by reliance on foreign manufacturing.
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