Eli Lilly and Company has unveiled plans for a $6.5 billion manufacturing facility in Generation Park, Houston, Texas. The project, described as a next-generation synthetic medicine active pharmaceutical product (API) site, will be the second of four new U.S. facilities the company intends to announce this year. Once operational, within the next five years, the site will focus on producing small molecule medicines across areas such as cardiometabolic health, oncology, immunology, and neuroscience.
The Houston API manufacturing facility is expected to create 615 high-paying positions, including roles for engineers, scientists, laboratory technicians, and operations staff. During construction, Lilly anticipates generating an additional 4,000 jobs. The facility will also be among the company’s production sites for orforglipron, Lilly’s first oral small molecule GLP-1 receptor agonist, which the firm plans to submit for global regulatory review for obesity treatment by year’s end.
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions,” said David A. Ricks, Lilly chair and CEO. “This significant U.S. investment and onshoring of our API production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future.”
The company has already confirmed another facility in Virginia and plans to disclose two further locations later this year. According to Lilly, each dollar spent in Houston could generate up to four dollars of additional economic activity, while each manufacturing job is expected to spur more employment across supporting sectors including logistics, retail, and supply chain.Â
Governor Greg Abbott welcomed the announcement, stating: “Texas is the economic engine of America because we foster innovation and empower businesses to succeed. Texas is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation’s history and provide good, high-paying jobs to hardworking Texans. With our highly skilled workforce, low taxes, and world-class, business-friendly climate, Texas is the best place for companies like Lilly to grow. This $6.5 billion facility will not only bolster Houston’s economy, it will boost our life sciences sector and help cement Texas as a global leader in health care innovation.”
Equipped with AI, machine learning, and digital systems, the API manufacturing facility will use automation to boost efficiency and ensure consistent, high-quality drug production. Lilly will also collaborate with universities in Texas and invest in education initiatives to improve workforce development. “With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the U.S. and setting a new global benchmark for innovation and technical leadership in our industry,” said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. “Additionally, we are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work.”
Generation Park was selected from more than 300 applications due to its workforce potential, infrastructure, incentives, and overall business climate. Lilly emphasized that the investment surpasses its initial commitments under Texas’ incentive process, reflecting the site’s pivotal role in strengthening the company’s ability to supply medicines across the U.S. and worldwide.
