Eli Lilly’s Next-gen $6.5B API and GLP-1 Orforglipron Facility, Houston, Texas, USA
Eli Lilly and Company has announced plans to build a $6.5 billion next-generation active pharmaceutical ingredient (API) manufacturing facility at Generation Park in Houston, Texas. This will be Lilly’s eighth U.S. manufacturing site announced since 2020 and the second of four new facilities the company plans to unveil this year.
The Houston plant will produce APIs for orforglipron, Lilly’s first oral small molecule GLP-1 receptor agonist, which the company plans to submit for regulatory approval for obesity by the end of this year. In addition, the facility will manufacture inputs for selected cancer, autoimmune, and other advanced therapies.
New Plant to Be Major Hub for Orforglipron
Lilly CEO David Ricks commented:
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions. This significant U.S. investment and onshoring of our API production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future.”
Orforglipron is designed to mimic the appetite-suppressing GLP-1 hormone targeted by Lilly’s injectable Zepbound. Late-stage clinical data showed patients taking the daily pill lost an average of 12.4% of body weight. Analysts project peak annual sales of approximately $25 billion.
Ricks highlighted that Texas was chosen for the site due to its chemical engineering and chemistry expertise, along with an abundant skilled labor force and strong construction support.
The facility is expected to create 615 permanent high-skilled roles for scientists, engineers, operations staff, and lab technicians, along with approximately 4,000 construction jobs, bringing the total to more than 4,600 jobs. Lilly estimates that for every dollar spent in the Houston area, up to four additional dollars of local economic activity will be generated. The expansion is also expected to create additional jobs in logistics, supply chain, and retail.
Part of Lilly’s $27 Billion U.S. Pharmaceutical Manufacturing Expansion
The Houston investment is part of Lilly’s $27 billion plan to build four new U.S. manufacturing sites over the next five years. Earlier this year, the company announced a $5 billion site in Goochland County, Virginia, and two remaining locations are expected to be announced later this year. Lilly anticipates all four facilities will be operational within five years.
The expansion aligns with the company’s strategy to increase domestic production of medicines, including GLP-1 therapies, and to onshore API production to meet growing global demand.
Advanced Manufacturing and Innovation
The Houston facility will feature state-of-the-art manufacturing technologies, including AI, machine learning, digitally integrated systems, and advanced data analytics to drive “right-first-time” execution. Digital automation will be embedded throughout the site to ensure reliable production of high-quality medicines.
Lilly also plans to collaborate with local universities and invest in educational initiatives to develop a pipeline of highly skilled talent in chemical synthesis, engineering, and pharmaceutical manufacturing.
Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations, said:
“With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the U.S. and setting a new global benchmark for innovation and technical leadership in our industry. Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work.”
Local Support and the Site Selection of Generation Park
Generation Park, located in the Lake Houston area northeast of the city, was selected from over 300 applications based on workforce potential, local incentives, access to utilities and transportation, and a favorable business environment.
Governor Greg Abbott commented:
“Texas is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation’s history and provide good, high-paying jobs to hardworking Texans. This $6.5 billion facility will not only bolster Houston’s economy, it will boost our life sciences sector and help cement Texas as a global leader in health care innovation.”
About Lilly
Lilly is a global pharmaceutical company turning science into life-changing medicines for people worldwide. For nearly 150 years, Lilly has pioneered discoveries in diabetes, obesity, Alzheimer’s disease, oncology, immunology, and other therapeutic areas, helping tens of millions of patients. The company leverages biotechnology, chemistry, and genetic medicine to tackle significant health challenges and is committed to ensuring therapies are accessible and affordable.
For more information, visit Lilly.com
Lead Image Credit: Eli Lilly and Company. A computer-generated image of Eli Lilly and Company’s planned drug chemical plant in Houston Credit: Eli Lilly and Company
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