Eli Lilly to invest $6.5 billion in Houston plant for obesity pill
Eli Lilly is doubling down on U.S.-based drug manufacturing. The pharmaceutical giant announced Tuesday it will invest $6.5 billion in a new manufacturing facility in Houston, Texas, aimed at scaling production of its pipeline of small molecule drugs — most notably orforglipron, its experimental obesity pill.
Expanding U.S. Manufacturing Footprint
The Houston site is part of a broader $27 billion investment plan Eli Lilly unveiled in February to construct four new domestic plants. Combined with $23 billion already spent since 2020, the company’s commitment to U.S. production now totals more than $50 billion.
Two additional plant locations will be revealed later this year, with Eli Lilly expecting all four new facilities to begin operations within five years.
Racing to Meet Demand for Weight-Loss Drugs
The new Houston plant comes at a critical time. Demand for GLP-1 drugs — a class of treatments for obesity and type 2 diabetes that includes Lilly’s weekly injection Zepbound and Novo Nordisk’s blockbuster Ozempic and Wegovy — has exploded in recent years. Supply shortages have become a persistent problem as drugmakers struggle to keep pace.
Orforglipron, if approved, would give Eli Lilly a significant edge. Unlike injectables, it is a daily pill with no food or water restrictions, making it far more convenient for patients.
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as an obesity treatment for tens of millions of people worldwide,” said Eli Lilly CEO David Ricks in a statement.
Strategic Timing Amid Policy Shifts
Eli Lilly’s push to expand U.S. capacity also aligns with political pressure. Former President Donald Trump has pledged to impose tariffs on pharmaceuticals imported into the U.S., arguing it will incentivize companies to re-shore production after years of decline in domestic manufacturing.
By investing heavily in American facilities, Eli Lilly positions itself to avoid potential disruptions from trade policy while strengthening its control over the supply chain.
Economic Impact in Houston
The Houston project will create 615 permanent jobs in fields ranging from engineering and science to operations and lab technology. Construction of the facility is expected to support an additional 4,000 jobs.
Beyond orforglipron, the plant will produce other small molecule drugs across cardiometabolic health, oncology, immunology, and neuroscience. Small molecules, which are typically manufactured as pills, are cheaper and easier to produce at scale compared to biologics or injectable therapies — making them a vital piece of Lilly’s long-term portfolio.
Looking Ahead
With orforglipron seen as a potential blockbuster, Eli Lilly’s Houston plant could become one of the company’s most important assets in the global race to dominate the obesity treatment market. If the facility comes online as planned, it will not only strengthen Lilly’s manufacturing muscle but also help ensure that supply keeps up with what has become one of the hottest areas in modern medicine.
