Eli Lilly to Invest $1.2 Billion in Puerto Rico Manufacturing Expansion

This article first appeared on GuruFocus.

Eli Lilly (LLY, Financials) is putting down another big marker in its U.S. manufacturing expansion. The company said Wednesday it will invest $1.2 billion to grow its operations in Carolina, Puerto Rico a site that has been part of Lilly's network for six decades.

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The new facility will focus on producing Lilly's upcoming oral weight-loss drug, orforglipron, which the company plans to submit for regulatory approval later this year. The site will also help make treatments for heart disease, diabetes, cancer, and autoimmune disorders areas where Lilly has seen fast growth.

Construction is set to start in 2026, and Lilly expects to begin producing oral drugs by late 2028. The project will create about 100 permanent manufacturing jobs and around 1,000 construction jobs.

Lilly's investment in Puerto Rico is part of a $50 billion plan to expand its U.S. manufacturing footprint. The company is adding new plants in Texas and Virginia and plans to announce more locations before the end of the year.

The move comes as Lilly looks to keep up with surging demand for its weight-loss and diabetes drugs, including Mounjaro and Zepbound, which have helped make it the world's most valuable drugmaker. It also aligns with a broader push by U.S. policymakers to bring more pharmaceutical production back home.

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