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Eli Lilly on Tuesday announced a $5 billion investment in a manufacturing facility in Virginia as the pharmaceutical giant looks to expand its domestic production capacity amid the threat of tariffs.
The manufacturing facility is expected to generate 650 high-wage jobs and 1,800 construction jobs at the West Creek Business Park in Goochland County, Virginia. The facility will produce active pharmaceutical ingredients for cancer, autoimmune and other advanced therapies.
Eli Lilly's announcement represents an expansion beyond the original plan for a $2.1 billion facility that would've created 468 jobs.
"Our investment in Virginia underscores our commitment to U.S. innovation and manufacturing – creating high-quality jobs, strengthening communities, and advancing the health and well-being of Americans nationwide," said Lilly CEO David Ricks. "By expanding our domestic capacity, we're building a secure, resilient supply chain that delivers for patients today and supports the breakthrough medicines of tomorrow."
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Eli Lilly announced a larger investment at its planned Virginia manufacturing facility. (Scott Olson / Getty Images)
Virginia Gov. Glenn Youngkin said in a statement that "Lilly is one of the world's greatest innovators, and I want to thank them for this significant commitment to Virginia."
"By expanding manufacturing capacity here in the United States, we are strengthening our economy, securing America's critical pharmaceutical supply chain, and positioning Virginia to lead in the industries that will drive innovation for generations to come."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LLY | ELI LILLY & CO. | 748.19 | -7.20 | -0.95% |
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Pharmaceutical companies have been stepping up their investment in U.S. manufacturing facilities amid President Donald Trump's efforts to push the industry to make more medicines domestically rather than importing them.
Trump has threatened to impose tariffs on pharmaceutical products, saying he would start small and could raise them to as high as 250% to boost U.S. production.
Eli Lilly announced plans for four new manufacturing facilities this year. (AJ Mast/Bloomberg via / Getty Images)
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Earlier this year, Eli Lilly outlined plans to spend at least $27 billion on four new U.S. manufacturing facilities to counter potential tariffs on drug imports.
Reuters contributed to this report.
