On Wednesday, Eli Lilly And Co. (NYSE:LLY) announced a $4.5 billion investment to create the Lilly Medicine Foundry, a new center for advanced manufacturing and drug development.
As the company inches closer to becoming the first pharma company in the $1 trillion club, it aims to strengthen its standing as one of the top 10 most valuable firms in the U.S. by outpacing its competitors.
In a report, Eli Lilly said it plans to reinvest its revenues into R&D, aiming to escape the pharmaceutical industry's traditional boom-and-bust cycle.
The company says the new facility will allow Lilly to research new ways of producing medicines while scaling up the manufacturing of medicines for clinical trials.
Also Read: Eli Lilly's Early Alzheimer's Treatment Donanemab Scores Japanese Approval, Its Second Largest Market.
The Medicine Foundry will be the first-ever facility of its kind to combine research and manufacturing in a single location. It will be located in Indiana's LEAP Research and Innovation District in Lebanon, Indiana, and will expand the company's investment there to more than $13 billion.
This new facility will add to Lilly's previous manufacturing commitments in Lebanon, which include a $2.1 billion investment announced in May 2022 to expand its network for active ingredients and new modalities, such as genetic medicines.
In April 2023, the company announced an additional $1.6 billion investment.
In May 2024, Lilly announced an additional $5.3 billion commitment to enhance its capacity to manufacture active pharmaceutical ingredients for its latest diabetes and obesity medicines, marking the largest single investment in active pharmaceutical ingredients production in U.S. history.
Opening in late 2027, the facility will increase Lilly's total capital commitment in the United States to more than $23 billion since 2020. It is trying to stay ahead of its close competitor, Novo Nordisk A/S (NYSE:NVO).
Once fully operational, the Medicine Foundry is expected to add 400 full-time jobs.
Price Action: At last check on Wednesday, LLY stock was down 0.39% at $881.00 during the premarket session.
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