Eli Lilly plans to invest $5 billion in a new manufacturing facility in Virginia to boost production of cancer drugs and other treatments. This is part of a larger initiative to invest $27 billion in four new U.S. manufacturing plants. The company aims to re-shore production as President Trump threatens tariffs on imported pharmaceuticals.

The new Virginia plant will focus on developing active ingredients for cancer and autoimmune drugs, including antibody drug conjugates. Eli Lilly CEO Dave Ricks emphasized that this facility will allow for pipeline growth and unique manufacturing capabilities for the company. The site will also create over 650 new jobs in Virginia.

Eli Lilly’s decision to build in the U.S. was influenced by tax incentives rather than the threat of pharmaceutical tariffs. The company credits Trump’s 2017 Tax Cuts and Jobs Act for encouraging increased U.S. manufacturing investments. The new facility will utilize advanced technologies like machine learning and artificial intelligence to ensure safe and reliable medicine supply.

Eli Lilly’s investments in the U.S. aim to expand beyond current drugs like Zepbound and Mounjaro, focusing on treatments for cancer, Alzheimer’s disease, and other conditions. The company is committed to developing its pipeline of products and addressing shortages of vital medications in the U.S.

Read more at CNBC: Eli Lilly to build $5 billion Virginia manufacturing facility