Lilly announces $3 billion expansion of its recently acquired manufacturing facility in Wisconsin

Rhea-AI Summary

Eli Lilly (NYSE: LLY) announced a $3 billion expansion of its Kenosha County, Wisconsin manufacturing facility. The expansion will enhance the company's injectable product manufacturing network to meet growing demand for diabetes, obesity, and future pipeline medicines. The project will add 750 highly skilled jobs to the current 100-plus workforce.

Construction is set to begin in 2025. Combined with the initial acquisition, land purchases, and warehouse additions, Lilly's total planned investment in Wisconsin reaches $4 billion. The facility will utilize advanced automation, including guided vehicles, robotics, and digital automation for medicine production. The project will also create over 2,000 construction jobs during the expansion phase.

Positive

• Major $3 billion investment expanding manufacturing capacity
• Addition of 750 new high-skilled jobs
• Enhanced production capabilities for high-demand products (diabetes and obesity medicines)
• Implementation of advanced automation technology to improve efficiency
• Total Wisconsin investment reaching $4 billion showing strong commitment to growth

Negative

• Significant capital expenditure requiring substantial financial commitment
• Extended timeline for return on investment with construction starting in 2025

Insights

Financial Analyst

This $3 billion manufacturing expansion represents a significant strategic investment for Lilly, bringing their total Wisconsin commitment to $4 billion. The facility will focus on injectable medicines production, particularly targeting their high-demand diabetes and obesity drug portfolio. With Lilly's market dominance in GLP-1 drugs like Mounjaro and Zepbound, this expansion is important for meeting explosive market demand. The addition of 750 high-skilled jobs also signals long-term commitment to the region. Since 2020, Lilly has invested over $23 billion in manufacturing capacity globally, demonstrating their aggressive scaling strategy. The emphasis on advanced automation and digital processes should drive operational efficiency and quality control, potentially improving margins long-term. This investment strengthens Lilly's competitive position in the rapidly growing obesity and diabetes markets.

Manufacturing Operations Expert

The expansion represents a significant advancement in pharmaceutical manufacturing capabilities. The facility's focus on parenteral products with advanced automation, guided vehicles and robotics will substantially increase production efficiency and precision. The digital automation integration across data management and operations will reduce human error while accelerating production timelines. The creation of 750 specialized positions, including operators, technicians, engineers and scientists, indicates a shift toward highly automated, precision manufacturing. This modernized approach to pharmaceutical production aligns with Industry 4.0 principles and positions Lilly at the forefront of manufacturing innovation. The strategic location in the Midwest also optimizes distribution logistics while leveraging the region's growing biotech workforce.

The investment will benefit millions of patients worldwide, boosting the production of the company's medicines, including those for diabetes and obesity 

INDIANAPOLIS, Dec. 5, 2024 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced a $3 billion expansion of the Kenosha County, Wisconsin, manufacturing facility that the company acquired earlier this year. This investment will extend the company's global parenteral (injectable) product manufacturing network, helping to meet the growing demand for its diabetes, obesity and future pipeline medicines across therapeutic areas. Lilly expects to add 750 highly skilled jobs to the current 100-plus workforce at this location.

The company plans to start construction on the expansion next year. This represents another step in Lilly's historic manufacturing expansion agenda to help more people who depend on its medicines. Since 2020, Lilly has committed more than $23 billion to construct, expand and acquire manufacturing sites worldwide.

"Today's announcement represents our single largest U.S. manufacturing investment outside our home state of Indiana and will add to our ability to expand capacity to make both our existing and future pipeline of medicines right here in the Midwest," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. "We look forward to bringing high-wage, advanced manufacturing, engineering and science jobs to people in Wisconsin, a state that is becoming a critical geography in our global manufacturing operations."

The acquisition, expansion, and additional purchases of land and the adjacent warehouse bring Lilly's total planned investment in Wisconsin to $4 billion. The expanded facility will focus on manufacturing injectable medicines, device assembly and packaging for medicines across multiple therapeutic areas.

Lilly will use advanced automation, including guided vehicles, robotics and production equipment, to accelerate medicine production. From data management to operations, digital automation will be embedded throughout the site to accelerate processes and increase accuracy, allowing employees to focus on making safe, high-quality medicines.

New highly skilled jobs at the site will include operators, technicians, engineers and scientists – in addition to more than 2,000 construction jobs during the expansion project's construction.

"Southeastern Wisconsin has seen tremendous growth over the past year with major companies announcing significant investments in our state, and we are thrilled to add Lilly to that growing list with their $3 billion expansion that will add 750 highly skilled, family-supporting jobs to Kenosha County," said Wisconsin Governor Tony Evers. "As a U.S. Regional Tech Hub, Wisconsin is a national leader in personalized medicine and biohealth, and through this partnership with Lilly, we're going to keep advancing research and innovation and bolstering Wisconsin's manufacturing industry, all while supporting workers, families, and patients across our state and around the world."

Lilly aims to advance innovation in pharmaceutical manufacturing by fostering partnerships with local higher education institutions and supporting various community initiatives in Wisconsin.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. C-LLY

Cautionary Statement Regarding Forward-Looking Statements 

This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) including about planned capital investments in new manufacturing capacity, production of medicines, hiring and related initiatives and reflects Lilly's current beliefs and expectations. However, as with any such undertaking, there are substantial risks and uncertainties in the manufacturing process, development and commercialization of pharmaceutical products any of which could impact the overall commercial success of our products, and as related to cost, completion timing, expected capacity, personnel, and other factors which could impact expected benefits of the capacity expansion and related initiatives. For further discussion of these and other risks and uncertainties, see Lilly's most recent Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Additional quotes for media use:

U.S. Congressman Bryan Steil: "Wisconsin workers are the best in the world, and I am glad to see Lilly bringing more opportunities here. Kenosha County is a great place to live, work, and raise a family and the addition of more than 700 jobs will further strengthen our community."

Refer to:	Carrie Munk; munk_carrie@lilly.com; 317-416-2393 (Media)
	Michael Czapar; czapar_michael_c@lilly.com; 317-617-0983 (Investors)

 

 

 

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SOURCE Eli Lilly and Company

FAQ

How much is Eli Lilly (LLY) investing in the Wisconsin facility expansion?

Eli Lilly is investing $3 billion in the expansion of its Kenosha County, Wisconsin manufacturing facility.

How many jobs will Lilly (LLY) create with the Wisconsin facility expansion?

Lilly will add 750 highly skilled permanent jobs and create over 2,000 temporary construction jobs during the expansion project.

What will Lilly (LLY) manufacture at the expanded Wisconsin facility?

The facility will manufacture injectable medicines, handle device assembly, and packaging for medicines across multiple therapeutic areas, including diabetes and obesity treatments.

When will Lilly (LLY) begin construction on the Wisconsin facility expansion?

Lilly plans to start construction on the expansion in 2025.