U.S.: Eli Lilly to Invest $850M in U.S. Capital Projects in 2017
27 Mar, 2017
Eli Lilly and Company will invest $850 million in its U.S. operations in 2017. The company’s investments span facilities across its U.S. enterprise, including research laboratories, manufacturing sites, and general and administrative areas. The investments are being driven by demand for Lilly products, as well as its robust pipeline of potential medicines in development targeting cancer, pain, diabetes and other unmet medical needs.
Details of the investments were unveiled at Lilly Technology Center in Indianapolis, including plans for a new $85 million expansion of its Trulicity® (dulaglutide) device assembly operations in the U.S. This expansion is part of a massive five-year investment by the company to expand its diabetes products manufacturing operations in the U.S., which also includes a $140 million insulin cartridge production facility that was officially dedicated at the announcement.
Lilly’s potential for growth and its long-standing commitment to the U.S. market led to its decision to invest in its U.S. operations and expand its manufacturing footprint in Indianapolis, according to David A. Ricks, Lilly’s president and chief executive officer.
“Our future at Lilly is bright, as we’re on a path to launch 20 new products in a 10-year time frame,” said Ricks. “As we have for our entire 140-year history, we continue to see Indiana and the United States as attractive places to research and make the medicines that we sell around the world.”
Lilly’s $850 million investment will fund projects that are already underway as well as new projects that will be initiated throughout the course of the year, including additional projects in Indianapolis.
Focus On Diabetes
Over the course of the last five years, Lilly has invested approximately $1.1 billion to boost its diabetes products manufacturing operations in the U.S. These investments include upgrades to existing facilities, as well as the addition of new capacity and capabilities based on the evolution of the company’s diabetes pipeline and portfolio and the increased prevalence of the disease.
During this period, Lilly has increased its U.S manufacturing workforce by more than 1,000 employees — from 5,000 to 6,000 — with approximately 400 added in Indianapolis.
“More than 400 million people around the world have diabetes — and that includes approximately 30 million people in the U.S. alone,” said Enrique Conterno, president, Lilly Diabetes and Lilly USA. “Lilly has spent more than 90 years providing solutions to people with diabetes, and today’s announcement extends the deep commitment of our heritage. This manufacturing expansion, along with the introduction of several other new treatments over the last two and a half years, will allow Lilly to continue to be a leader in diabetes care.”
Conterno added that the new investments underscore Lilly’s diabetes manufacturing presence in Indianapolis. Lilly’s state-of-the-art manufacturing facility in Indianapolis is part of the company’s nine-decade legacy of producing insulin.
“In addition to providing the capacity necessary for the safe and reliable supply of medicines to patients, these investments have allowed us to add U.S. manufacturing jobs,” said Maria Crowe, president of Lilly Manufacturing. “These include highly-skilled technicians, scientists and engineers, which are an economic catalyst for local communities.”
During the past five years, Lilly’s construction-trade staffing has averaged nearly 500 jobs, and had a peak level of nearly 1,000 workers, according to Crowe. The ongoing operations together with the investment programs will continue to require a significant level of construction-trade workers at the Lilly Technology Center.
“Lilly’s announcement today is a clear example of what a fiscally sound state with a strong business climate — coupled with a world-class company — can achieve,” said Indiana Gov. Eric J. Holcomb. “I am grateful for Lilly’s continued investment in Hoosiers and in our home state, and will work to maintain the strength of the life-sciences industry and advanced manufacturing in Indiana.”
“Despite a global presence and diverse interests, Lilly’s continued investment in Indianapolis is a testament to their exceptional level of faith in our workforce and a decades-long commitment to this community,” said Indianapolis Mayor Joe Hogsett. “As the biotech industry continues to grow in Indianapolis, Lilly remains a clear leader, bringing advancements to the field and high paying jobs to the city. I’m excited for what today’s announcement means for the company’s future and look forward to Lily’s continued advancements as their footprint in our city grows.”
Lilly has invested approximately $5 billion in its U.S. facilities during the last decade and that more investments can be expected, particularly if the U.S. adopts a more favorable tax environment, according to Ricks.
“The equitable treatment of foreign earnings, a lower U.S. corporate tax rate, and U.S. innovation incentives—similar to the rest of the world—will encourage significant investment in the U.S., creating economic growth and good jobs for Americans,” said Ricks. “The House Republican Blueprint with border adjustability is designed to achieve these priorities, puts America’s global companies on a level playing field with competitors around the world, and creates economic growth and employment within the U.S.”