Eli Lily announced Wednesday that it plans to more than double US manufacturing investment this year to $50 billion as President Trump threatens to threaten tariffs on drug imports.
The drug giant will begin construction of four domestic manufacturing sites in 2025, adding 13,000 high-wage manufacturing and construction jobs. press release. The company claimed the planning account for the largest drug manufacturing investment in US history. (Related: Apple announces $500 billion investment in America since CEO meets Trump)
Since 2020, Eli Lilly has invested more than $23 billion worldwide, including building, expanding and purchasing manufacturing equipment. One of these was a facility in Kenosha County, Wisconsin, and was expected to add 750 skilled jobs to the workforce already located there, according to December, the Wisconsin governor said. press release From the company. Other investments are new sites in North Carolina and Indiana, working on improving facilities in Indianapolis and Lilly Medical Foundry in Indiana.
“Our confidence positions us to help reinvigorate domestic manufacturing, which benefits hardworking American families and increases exports of medicines made in the United States,” Lily Chairman and CEO David Licks said in a press release.
Eli Lilly CEO Dave Licks has announced four new sites and a $27 billion investment in the US economy.
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The three planned installations will be directed at manufacturing active pharmaceutical ingredients (APIs), returning molecular chemical synthesis capabilities to the US and strengthening Lily’s supply network. The fourth location expands the company’s global manufacturing network for future injectable therapies.
“We’re not just building facilities,” said Ed Gardo Hernandez, executive vice president and president of Lily Manufacturing Operations. “We are building a world-leading future in drug manufacturing where American innovation is building a global leader in medicine manufacturing and need a highly skilled workforce prepared to shape the future of healthcare.”
Eli Lilly claims to create over 3,000 jobs for skilled engineers, scientists, operational workers and lab engineers in addition to 10,000 construction jobs during the development process. The company said the move will bring spending, tax revenue, people and opportunities to the site.
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The employee works on October 12, 2015 in a unit specialized in the production of insulin pens at the factory of the US pharmaceutical company Eli Lilly in Fegersheim, eastern France. (Photos Frederick Florin/AFP via Getty Images)
Rix also praised the 2017 Tax Cuts and Employment Act (TCJA) for promoting the company’s domestic investment.
“The Tax Cuts and Employment Act passed laws passed during President Trump’s first term in 2017. This is the basis for Lily’s domestic manufacturing investment, and it is essential that these policies be extended this year. We believe that investment in the US and the increased labor force in our country will cause a major ripple effect. More jobs will be generated for every job we create, and it will have a positive impact on the community hosting innovative new sites,” he said.
The move from Eli Lily is due to President Donald Trump pushing for more than 25% tariffs on imported medicines. On February 18, Trump reaffirmed his plans at a press conference, saying he would probably provide more information on April 2.
“It’s going to be over 25% and it’s very high over the course of a year. But we want to give them time to come,” he said. “When they come to the US and they have plants and factories here, there are no tariffs, so we want to give them a little chance.”
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Trump’s plan breaks down from the World Trade Organization (WTO) rule Due to the complexity of enforcing these products’ obligations, the drug is exempt from customs duties.
Ireland and Germany are the leading exporters of medicines to the United States. Think about it – A think tank for economic and financial analysis.
Eli Lily has both locations country. The company operates two manufacturing facilities in Ireland and a third manufacturing facility in Germany.
Eli Lilly is the world’s largest pharmaceutical company, boasting a market capitalization of over $500 billion in October 2023. Visual Capitalist.
