Lilly Invests $3.5B in Pennsylvania Injectable Medicine Facility

Eli Lilly and Company (Lilly) has announced a $3.5 billion investment to establish a new manufacturing site in Fogelsville, Pennsylvania, specifically for injectable medicines and medical devices.¹ For professionals in pharmaceutical development and production, this project represents a significant expansion of domestic capacity aimed at manufacturing next-generation weight-loss therapies, including the investigational triple hormone receptor agonist retatrutide.² Construction for the facility is scheduled to commence in 2026, with the site projected to become operational by 2031.¹

What are the strategic drivers behind this large-scale manufacturing expansion?

This facility marks the tenth domestic manufacturing site announced by the company since 2020, reflecting a broader strategy to strengthen the supply chain for high-demand medicines.¹ Industry leaders emphasize that increasing domestic production is essential for ensuring a reliable supply of essential therapies for patients. The move is part of a larger capital commitment exceeding $50 billion, which includes new developments in Alabama, North Carolina, and Indiana.

David A. Ricks, Lilly chair and CEO, noted the significance of this expansion,¹ saying, "Our mission starts with patients and delivering the medicines they need. To meet increasing demand, we're expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next‑generation weight-loss medicines. We're creating high‑quality jobs and collaborating across the region—with suppliers, educators, and workforce‑development partners—to make critical medicines in the U.S. That's our commitment—to patients, to our new Pennsylvania home and to our country."

The state's leadership also underscored the importance of creating a competitive environment for life sciences. Governor Josh Shapiro stated,¹ "When we announced our Economic Development Strategy here in the Lehigh Valley two years ago, we set out to win historic, life-changing deals like the one we're announcing with Lilly today. Before I took office, Pennsylvania wasn't even in the conversation for major investments like this, but thanks to our work to cut red tape, invest in site development, and expand our workforce, our Commonwealth is now competing—and winning—on a national scale. Lilly's commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry."

How will technical innovation shape the operational capabilities of the new facility?

The selection of the Lehigh Valley site was driven by its technical manufacturing economy, existing infrastructure, and proximity to universities specializing in science, technology, engineering, and mathematics.¹ The facility will utilize advanced technologies, such as AI, machine learning, integrated monitoring, and data analytics to optimize operations and maintain a reliable supply of medicine.

In regard to the vision for the site, Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations, explained,¹ "Lilly Lehigh Valley—our newest injectable medicine and device manufacturing facility—will increase access to next-generation weight-loss treatments and improve the domestic supply of essential medicines for current and future patients. Our investment here is more than just building a facility—it's about building a shared future with the people and communities of the Commonwealth. Through meaningful partnerships in Pennsylvania, we're committed to fostering collaboration, driving innovation, advancing environmental stewardship, and creating lasting positive impact that extends far beyond our facility walls."

The facility is expected to create 850 high-value positions, including roles for engineers, scientists, and lab technicians, alongside approximately 2,000 construction jobs.¹ Senator Dave McCormick commented on the regional impact, stating,¹ "This multi-billion dollar investment in the Lehigh Valley is a powerful testament to Pennsylvania's leadership in life sciences and advanced manufacturing. In addition to producing breakthrough medicines and treatments that will improve lives nationwide, Lilly's cutting-edge facility will create thousands of high-quality jobs for working families right here in the Lehigh Valley, proving once again that Pennsylvania's skilled workforce and manufacturing heritage remain unmatched. I am grateful for the continued partnership with the Governor and his team in bringing transformational investments to Pennsylvania. This is American manufacturing at its best, and Pennsylvania is proud to lead the charge."

This investment also carries implications for the broader regional economy, with the company estimating significant secondary economic activity for every dollar invested. Senator John Fetterman stated,¹ "Pennsylvania continues to be a leader in health care innovation, and I will always support companies like Lilly making major investments to advance these technologies. I am proud to support their new $3.5B manufacturing facility that will deliver hundreds of good jobs and produce critical medicine for our Commonwealth."

Finally, Congressman Ryan Mackenzie highlighted the role of the site in the national context, saying,¹ "We are pleased to welcome Eli Lilly to the Lehigh Valley as part of its commitment to investing in America. Having modern, robust pharmaceutical manufacturing capabilities here in the United States is essential for both our national security and domestic economy. We are proud to see Eli Lilly making this investment here in the Lehigh Valley, where it will contribute to our prosperity and build on our historic manufacturing tradition. Because of the hard work of our local communities, the Lehigh Valley continues to be a hub for industry and investment."

References

1. Eli Lilly and Company. Lilly Selects Pennsylvania as Home for its Newest Injectable Medicine and Device Manufacturing Facility. Press release. Jan 30, 2026.
2. Eli Lilly and Company. What to Know about Retatrutide: An Investigational Triple Hormone Receptor Agonist. Accessed Jan 30, 2025.