Another big one.*
From the Wall Street Journal, December 9:
The site is the third of four new facilities in the U.S. that the pharmaceutical company plans to announce
plans to build a $6 billion facility in Huntsville, Ala., to make active pharmaceutical ingredients, including those used in weight-loss drugs.
The site is the third of four new facilities in the U.S. that the pharmaceutical company plans to announce, Eli Lilly said Tuesday.
Eli Lilly will make small molecular synthetic and peptide medicines at the Huntsville plant. Among those will be orforglipron, the company’s oral, small molecule GLP-1 receptor agonist.
Eli Lilly plans to submit orforglipron to global regulators by the end of this year seeking approval as an obesity treatment, it said.
The site will bring 450 jobs to the area, including engineers, scientists and lab technicians.
Construction is scheduled to begin in 2026 and is anticipated to create 3,000 construction jobs. Completion is slated for 2032.
The company chose the site partly because it is close to the HudsonAlpha Institute for Biotechnology, a bioscience campus....
*As pointed-out exiting from September24's ""Eli Lilly announces $6.5 billion manufacturing campus in Houston" (a trend is emerging)"
From Fierce Pharma, September 16:
Eli Lilly has revealed the location of the first of four large-scale manufacturing facilities that it plans to build in the U.S. The company has selected Goochland County, Virginia, as the site of a $5 billion plant that will produce active pharmaceutical ingredients.
The facility is part of a $27 billion investment plan that the Indianapolis drugmaker laid out nearly seven months ago during a high-profile press event in Washington, D.C., dubbed “Lilly in America.”
The company expects to break ground this year on each of the new plants, which Lilly calls “mega sites.”
Lilly's move to bolster its domestic capacity and strengthen its supply chain reflects a broader industry trend in which drugmakers have poured billions of investment dollars into the U.S. in response to the growing threat of tariffs on pharmaceutical products imported from foreign countries....
....MUCH MORE
Lilly is talking $27 billion for the four plants,
The article points out an effect of the administration's various tariff regimes that don't get highlighted that often:
...Other companies that have revealed massive investment plans in the U.S. in recent months include Roche, which has pledged to spend $50 billion, and Johnson & Johnson, which has unveiled a $55 billion plan that includes bolstering its medtech business. Meanwhile, Sanofi and Novartis have committed to spend at least $20 billion each in the U.S. by the end of the decade.Not highlighted that is except maybe by us.
As noted exiting Aug. 25's "Brace for a Second China Shock. Advanced Manufacturing Is at Risk":
One of the stated goals of the tariff regime is to encourage foreign companies to establish and/or increase their manufacturing footprint in the U.S. We have seen European companies, big pharma in particular respond to this aspect of the changing world of trade.
For their own reasons, some idiosyncratic, some policy driven, we have not seen Chinese companies react in the same way. The only recent large investment announcement that comes to mind is Chinese-owned (Haier) GE Appliances:
GE Appliances shifts more production to US as part of a $3 billion investment"AstraZeneca pledges $50bn US investment ahead of drugs tariffs"
Another One: "Amgen to expand Ohio biotech manufacturing plant"
The one that really stood out for us was "Swiss pharmaceuticals company Roche announces $50B investment in US over next 5 years" because it followed so closely on the warning from the EFPIA (also because of the 50 large, that's a lot of money, no matter who you are):
Another One: "Bristol Myers to invest $40 billion in the US over 5 years, CEO says"...April 13's "Pharma CEOs alert President von der Leyen to risk of exodus to the US" on The European Federation of Pharmaceutical Industries and Associations:
Here's who "These folks" are ...
"Sanofi to Invest at Least $20 Billion in US Through 2030"
A trend is emerging.
