By Sneha S K
(Reuters) – Eli Lilly said on Tuesday it will invest $5 billion to build a manufacturing facility in Virginia, part of the drugmaker’s broader $27 billion plan to build four facilities across the United States over the next five years.
The investment marks Lilly’s latest push to boost domestic drug production and hedge against potential tariffs.
Global pharmaceutical companies have been increasing U.S. investment to bolster manufacturing capacity after President Donald Trump urged the industry to make more medicines domestically rather than importing active ingredients or finished medicines.
Trump has said he would start with small pharma tariffs and could raise them to as high as 250% to boost U.S. production.
The new facility in Goochland County, Virginia, will produce active pharmaceutical ingredients for cancer, autoimmune and other advanced therapies. It will also expand Lilly’s capacity to make antibody-drug conjugates, a targeted class of cancer treatments.
The plant, which is expected to be completed within five years will rank among the world’s largest bioconjugate manufacturing plants, specializing in the production of targeted cancer therapies such as antibody-drug conjugates.
Shares of the Indianapolis, Indiana-based company were up 1.8% at $761.43.
The investment will strengthen the country’s ability to “make our own medicines, in fact, to export them, reducing our reliance on foreign suppliers, and ensuring patients can count on safe supply of authentic medicines made in their own communities,” CEO David Ricks said at a press conference.
The project is expected to create more than 650 permanent jobs for scientists, engineers, and other skilled workers, along with about 1,800 construction roles.
The company plans to announce the locations of the three remaining U.S. plants later this year and expects to begin making medicines at all four facilities within five years.
Since 2020, Lilly has committed about $50 billion in capital projects to support its pipeline and strengthen supply chains.
(Reporting by Sneha S K in Bengaluru; Editing by Tasim Zahid)
