Eli Lilly Breaks Ground On $6.5 Bln Houston Manufacturing Facility
(RTTNews) - Eli Lilly and Company (LLY) announced that it has begun construction of a $6.5 billion manufacturing facility in Houston, Texas, which will produce active pharmaceutical ingredients, or API for Foundayo and other small-molecule medicines and advanced therapeutics.
The construction is part of the company's $50 billion push to expand and reshore medicine production in the U.S. The Houston site is one of 10 U.S. manufacturing sites announced by Lilly since 2020, and the company's fifth domestic facility focused on API.
The facility will manufacture Foundayo (orforglipron), Lilly's first synthetic oral GLP-1 medicine. Foundayo is a once-daily, small-molecule, non-peptide GLP-1 receptor agonist approved in the U.S. for weight-related medical conditions.
Foundayo is currently under regulatory review in more than 40 countries, with Lilly targeting a global rollout in 2027. The company is also studying the drug in additional indications, including type 2 diabetes (T2D), and obstructive sleep apnea.
The Houston site will also manufacture oligonucleotides, a class of medicines designed to work at the genetic level by modulating the production of certain proteins.
Lilly also plans to incorporate machine learning, artificial intelligence, digitally integrated systems, advanced data analytics and digital automation into the facility.
As part of the development, Lilly is providing $12.5 million to support its relationship with San Jacinto College, creating pathways into advanced chemical synthesis manufacturing careers without requiring prior experience.
According to the company, the initiative will support training programs, equipment and facility capacity, while Lilly experts will contribute to curriculum development and instructor preparation.
Lilly is also providing a separate $2.5 million donation to the San Jacinto College Foundation for scholarships for eligible students.
The Houston facility is expected to create more than 600 high-wage jobs, including positions for engineers, scientists, operations personnel and laboratory technicians, along with about 4,000 construction jobs as the site is built and brought online.
LLY closed Monday's trade at $1,164.89, up 1.04%.
In the overnight market, shares are down 0.09% at $1,163.86.
