Eli Lilly will invest an additional $5.3 billion into a new manufacturing site, boosting production for its weight loss and diabetes medications Mounjaro and Zepbound, the pharmaceutical firm said Friday, as demand for the popular drugs has resulted in shortages.
Demand for the company’s weight loss and diabetes drugs has outpaced its supply.
Eli Lilly will invest the funds to develop a manufacturing plant in Lebanon, Indiana, that will produce tirzepatide, the active ingredient in Zepbound and Mounjaro, the company said.
The investment will add 200 full-time jobs at the site, including positions for engineers, scientists, operating personnel and lab technicians, bringing the total workforce at the site to 900 full-time employees, according to Eli Lilly.
Production at the site is expected to begin toward the end of 2026, Eli Lilly said, with escalated operations through 2028.
There is “limited availability” for most injections of Mounjaro and Zepbound in the U.S., according to the Food and Drug Administration, citing increased demand for both drugs.
Shares of Eli Lilly—up 39% this year—rose slightly to $808.69 after the announcement,
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The $5.3 billion is the largest manufacturing investment in Eli Lilly’s 150-year history, chief executive David Ricks said in a statement.
$18 billion. That’s how much Eli Lilly has invested in developing manufacturing sites across the U.S. and Europe since 2020, according to the company. Eli Lilly is developing two sites in North Carolina, one in Ireland and another in Germany, in addition to a $1.2 billion investment to “update” a manufacturing plant in Wisconsin it recently acquired from Nexus Pharmaceuticals.
Eli Lilly has focused on boosting production in recent years following promising research results for tirzepatide. The FDA approved the drug—previously approved for treating diabetes as Mounjaro—for weight loss treatment under the brand name Zepbound in November, joining rival weight loss medications like Novo Nordisk’s Ozempic and Wegovy on the market. The popularity of injectable weight-loss treatments has resulted in shortages for all four drugs, requiring both Novo Nordisk and Eli Lilly to ramp up manufacturing efforts. Earlier this year, Eli Lilly increased its projections for full-year revenue by $2 billion, citing the company’s “production expansion.”