Eli Lilly plans to invest $6 billion in a new manufacturing plant in Huntsville, Alabama. This is part of the company’s strategy to boost production of its experimental obesity pill. This is the third new facility in a series of planned U.S. investments by Eli Lilly, totaling at least $27 billion since 2020.

Construction on the Alabama plant is set to begin in 2026 and be completed by 2032. CEO David Ricks stated the investment will strengthen the supply chain for active pharmaceutical ingredients, ensuring reliable access to medicines for U.S. patients. The plant will bring 450 permanent jobs and 3,000 construction jobs to the area.

Eli Lilly’s obesity pill, orforglipron, has won a priority review voucher from the FDA, potentially expediting the drug’s approval process. The company aims to maintain its market dominance in the booming GLP-1 market. Demand for GLP-1s has surged in recent years, leading to supply shortages that Eli Lilly and rival Novo Nordisk have worked to address.

The decision to invest in U.S. manufacturing facilities comes after concerns about potential tariffs imposed by former President Donald Trump on pharmaceutical imports. Recent drug pricing deals have alleviated these concerns, allowing companies like Eli Lilly to focus on expanding their domestic production capacity.

Read more at CNBC: Eli Lilly to build $6 billion Alabama manufacturing plant