Gold prices hold gains amid Fed rate cut hopes, tariff jitters
Investing.com -- On Wednesday, Eli Lilly (NYSE:LLY) announced plans to invest an additional $27 billion in U.S. pharmaceutical manufacturing, bringing its total domestic capital expansion commitments to over $50 billion since 2020.
The company revealed it will build four new manufacturing sites this year, creating more than 13,000 jobs across manufacturing and construction.
Lilly’s investment marks the largest pharmaceutical manufacturing expansion in U.S. history. The company said three of the planned sites will focus on active pharmaceutical ingredient (API) production, reinforcing domestic small molecule chemical synthesis capabilities.
The fourth site is expected to expand its global parenteral manufacturing network for injectable therapies.
“Lilly’s optimism about the potential of our pipeline across cardiometabolic health, oncology, immunology, and neuroscience drives our unprecedented commitment to domestic manufacturing,” said David Ricks, Lilly chair and CEO. “This bold move reflects our commitment to stay ahead of anticipated demand for safe, high-quality, FDA-approved medicines.”
The four new facilities are expected to create over 3,000 highly skilled jobs, including positions for engineers, scientists, and lab technicians. An additional 10,000 construction jobs will be generated during development.
Lilly emphasized that the 2017 Tax Cuts and Jobs Act played a foundational role in enabling its domestic expansion. “It is essential that these policies are extended this year,” Ricks added, noting that investment in American manufacturing will drive economic growth and innovation.
Following the news, analysts at Deutsche Bank (ETR:DBKGn) said they believe the Street “anticipated LLY expanding its CapEx for the large Diabesity demand.”
However, “today’s announcement of four new US manufacturing facilities is an incremental positive that helps to somewhat mitigate President Trump implementing Pharma tariffs,” wrote the bank.