Eli Lilly expands Philly-region presence with $3.5B drug manufacturing facility

Eli Lilly is expanding its footprint in eastern Pennsylvania with a new manufacturing site outside of Philadelphia. 

The global pharmaceutical company revealed plans today to build a $3.5 billion drug manufacturing facility in Lehigh County. The company chose the region because of strong partners, including state government and local economic development leaders, and the region’s growth around the life sciences industry, David Ricks, CEO of Eli Lilly and Company, said. 

“Pennsylvania and the greater region around Philadelphia … will continue to grow as an epicenter for biopharma production,” Ricks said. “We want to be a part of that.” 

Just an hour outside Philly, this site will specifically focus on injectable medications, including its popular GLP-1 drug Zepbound and a new weight-loss drug called retatrutide, which recently completed its Phase 3 clinical trial. 

The project is expected to create 850 new full-time jobs over the next five years, including technicians, engineers and scientists, and will require 2,000 construction jobs, Ricks said. 

Eli Lilly intends to partner with local colleges and universities to help prepare students for industry jobs. The state government also committed to providing up to $5 million to create a workforce development training program through the Redevelopment Assistance Capital Program. 

This is the fourth new facility Eli Lilly has announced over the last six months, with others being based in Virginia, Texas and Alabama. The company announced plans last February to open four new sites and increase medicine production in the United States.

The commonwealth is also contributing $100 million to the project, including a $25 million grant through the Pennsylvania Strategic Investments to Enhance Sites Program, $50 million in tax credits through the PA Edge Tax Credit Program and a $25 million Pennsylvania First grant.

“We put an emphasis on life sciences as one of our five pillars of economic opportunity for the future, because we believe this is an area where we are poised for explosive innovation and growth,” Governor Josh Shapiro said. “With Lilly helping us lead the way, I’m confident that we’re going to continue to see and supercharge this industry right here in the commonwealth of Pennsylvania.” 

Another win for Philly region life sciences

Eli Lilly announced plans to open a new Lilly Gateway Labs location in Center City Philadelphia in November. This space will serve as an incubator for local biotech startups. 

In general, the Philadelphia region is known for its strength in the life sciences industry, touting strong research institutions and workforce development pipelines. Eli Lilly joins other major drug manufacturers like GSK and Merck, which already have a presence in the Greater Philadelphia region. 

However, 2025 was a mixed year for the sector locally. The region saw investments like Eli Lilly’s and another one from Thermo Fisher Scientific, but also saw major layoffs and local companies shutting down. Startups say that’s because they struggle to bring in cash. 

However, revised data from PitchBook and the National Venture Capital Association showed that 2025 was a solid year for venture capital in Philly. 

The region has already seen multiple big raises in the biotech space this year. This includes Alveus Therapeutics, which emerged from stealth with a $160 million raise and is also competing in the weight-loss drug space. 

Plus, local biotech executives seem to feel positively about the current momentum in the biotech industry and support from Pennsylvania leaders. 

“I’m really optimistic,” Eric Heil, CEO of Ladder Bio, previously told Technical.ly. “That folks recognize the opportunity that we have here in the state.”