Eli Lilly and Co. (NYSE:LLY) announced on Tuesday that it plans to build a $5 billion manufacturing facility just west of Richmond, Virginia, in Goochland County.
The new facility will be Eli Lilly’s first fully integrated site dedicated to both active pharmaceutical ingredient (API) production and drug products, supporting its growing bioconjugate platform and monoclonal antibody portfolio.
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Earlier this year, Eli Lilly revealed plans to strengthen U.S. drug production across multiple therapeutic areas by constructing four new manufacturing sites nationwide.
The Virginia plant is the first of these new sites to be officially announced and is part of Eli Lilly's broader $50 billion investment in U.S. facilities since 2020.
The facility will also enhance domestic production of antibody-drug conjugates (ADCs), further supporting Eli Lilly's oncology portfolio.
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An ADC is a targeted therapy designed to deliver potent medicines directly to diseased cells. They are primarily used to treat cancer but are being explored for autoimmune diseases and other conditions.
Expected to be completed within the next five years, the manufacturing site will bring more than 650 new jobs. The project is anticipated to bring 1,800 construction jobs to the region and greatly benefit the local economy.
The facility will incorporate cutting-edge technologies, including AI, machine learning and automation, to ensure precise, first-time-right manufacturing and maintain a safe, dependable medicine supply.
To fully leverage these advanced technologies, Eli Lilly intends to collaborate with local universities and support educational programs, fostering community engagement in Virginia.
The company plans to announce the three remaining U.S. manufacturing sites this year and expects to begin making medicines at these four facilities within five years.
On Tuesday, Reuters noted Eli Lilly's experimental weight-loss pill, orforglipron, could be fast-tracked through a new FDA review process that takes one to two months.
Orforglipron is viewed as a strong contender due to rising costs of injectable alternatives and Eli Lilly's efforts to expand U.S. manufacturing — both priorities for the Trump Administration.
In August, Eli Lilly released data from a Phase 3 ATTAIN-1 trial evaluating orforglipron.
For the primary endpoint, orforglipron 36 mg lowered weight by an average of 12.4% (27.3 pounds) compared to 0.9% (2.2 pounds) with placebo using the efficacy estimand, below Wall Street's expectations of around 15%.
LLY Price Action: Eli Lilly stock is up 2.09% at $763.81 at publication on Tuesday.
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