Eli Lilly and Co. (NYSE:LLY) announced plans to invest more than $5 billion to expand a manufacturing site in Indiana, aiming to increase production of its popular weight-loss and diabetes treatments, Zepbound and Mounjaro.
The drugmaker revealed on Friday that it is more than doubling its investment in the site near its Indianapolis headquarters. The expansion will take time, with the Lebanon, Indiana, plant expected to start production by the end of 2026 and ramp up through 2028.
Eli Lilly will add $5.3 billion to the $3.7 billion already allocated for the site. Company officials stated that this represents the largest manufacturing investment in Eli Lilly’s history, which dates back to the 19th century.
The expanded facility will produce tirzepatide, the active ingredient in both Mounjaro and Zepbound. Zepbound, a weight-loss treatment, received U.S. regulatory approval last fall. Together, the two drugs generated over $2 billion in sales in the first quarter of this year.
Eli Lilly has faced challenges in meeting the growing demand for these treatments, similar to its rival, Novo Nordisk (NYSE:NVO), which manufactures the popular weight-loss drug Wegovy.
Company officials anticipate some production increases to begin in the latter half of this year. Analysts predict that Zepbound and Mounjaro will eventually generate over $30 billion in combined annual sales for Eli Lilly, according to FactSet.
Shares of Eli Lilly rose slightly to $809.70 on Friday morning, aligning with the S&P 500 index.
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