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Eli Lilly to Invest $6.5 Billion in New Houston Manufacturing Facility

Key Takeaways

  • Eli Lilly's new $6.5 billion Houston facility will focus on small molecule API production, creating 615 high-wage jobs and 4,000 construction jobs.
  • The facility will produce orforglipron, a GLP-1 receptor agonist for obesity, enhancing Lilly's manufacturing capabilities and ensuring secure access to life-changing medicines.
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The Generation Park site will create over 600 permanent jobs, support advanced small molecule production, and play a role in scaling orforglipron, Lilly’s first oral GLP-1 receptor agonist for obesity.

Image Credit: Adobe Stock Images/KatherineWelles.com

Image Credit: Adobe Stock Images/KatherineWelles.com

Eli Lilly and Company will be constructing a new $6.5 billion manufacturing facility at Generation Park in Houston, TX. The development represents the second of four sites in the United States that Lilly plans to reveal this year, as pharma tariffs could potentially be forthcoming.

Facility to focus on small molecule API production

The Texas plant—expected to be operational within five years—is going to focus on the production of active pharmaceutical product (APIs) facility, prioritizing the manufacturing of Lilly’s small molecule meds spanning various therapeutic areas, featuring cardiometabolic health, oncology, immunology and neuroscience.

This new facility presents its share of upside, including the creation of 615 new high-wage jobs for the Greater Houston area, such as engineers, lab technicians, operations staff, and scientists. Additionally, an estimated 4,000 construction jobs will also become available during the building process.

Scaling production of orforglipron for obesity

The facility will also play a key role in producing orforglipron, Lilly’s first oral small-molecule GLP-1 receptor agonist, which the company plans to submit for global regulatory approval as an obesity treatment by the end of 2025.

"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," commented David A. Ricks, Lilly chair and CEO. "This significant US 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."

Leveraging advanced technology and local partnerships

Lilly will be powering the facility with advanced tech, including AI, machine learning, digital integration, and data analytics. The site will feature end-to-end digital automation to optimize operations and maintain a consistent supply of safe, high-quality meds. To help implement this plan, the company is partnering with local universities and investing in education initiatives across Texas to help build a strong talent pipeline.

"With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the U.S. and setting a new global benchmark for innovation and technical leadership in our industry," said Edgardo Hernandez, executive vice president and president of Lilly manufacturing operations. "Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work."

Fast Facts

  • Investment: $6.5 billion
  • Location: Generation Park, Houston, TX
  • Timeline: Expected to be operational within five years
  • Focus: API production for small-molecule medicines
  • Key Product: Orforglipron – Lilly’s first oral GLP-1 receptor agonist for obesity

Part of Lilly’s $50 billion US expansion strategy

As alluded to previously, the first US site that Lilly unveiled plans for was a $5 billion production plant in Goochland County, VA.2 The new manufacturing site is located just west of Richmond and will be considered the company's first fully integrated facility dedicated to APIs pharmaceutical ingredient and drug product.

It’ll house the manufacturing of antibody-drug conjugates (ADCs), as part of a grander $50 billion in US capital expansion commitments that started in 2020. An ADC is a type of targeted therapy that provides powerful medicines straight to diseased cells. It combines the specificity of monoclonal antibodies with the strength of cytotoxic drugs, acting as a precise carrier that enhances treatment effectiveness while also limiting damage to healthy tissue. While most commonly used in cancer treatment, ADCs are also being studied for autoimmune disorders and other diseases.

Recent developments: Sale of New Jersey plant

In other Lilly news, the company also recently sold a Branchburg, NJ biopharma manufacturing facility to Celltrion USA for $330 million.3 It was originally owned by Imclone Systems LLC, who was acquired by Lilly in 2008. Celltrion anticipates receiving US regulatory approval for the plant this year, with production of both Celltrion and Eli Lilly products expected to begin by the end of 2026.

References

1. Lilly Plans to Build a New $6.5 Billion Facility to Manufacture Active Pharmaceutical Ingredients in Texas. Eli Lilly and Company. September 23, 2025. Accessed September 24, 2025. https://investor.lilly.com/news-releases/news-release-details/lilly-plans-build-new-65-billion-facility-manufacture-active

2. Saraceno N. Eli Lilly to Build $5 Billion Manufacturing Plant in Virginia, Expanding US Biopharma Capacity. Pharmaceutical Commerce. September 17, 2025. Accessed September 24, 2025. https://www.pharmaceuticalcommerce.com/view/eli-lilly-build-5-billion-manufacturing-plant-in-virginia

3. Saraceno N. Celltrion to Acquire Eli Lilly’s $330M Production Plant. Pharmaceutical Commerce. September 23, 2025. Accessed September 24, 2025. https://www.pharmaceuticalcommerce.com/view/celltrion-acquires-eli-lilly-production-plant

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