Eyeing Trump trade policy shakeup, Eli Lilly to build 4 US factories
Source: AFP
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US pharmaceutical giant Eli Lilly announced Wednesday that it will build four additional new manufacturing sites in the United States in a committment designed to influence upcoming Trump administration decisions on trade and other issues.
The drugmaker, which is in growth mode thanks partly to the success of anti-obesity drugs Zepbound and Mounjaro, expects to add more than 3,000 jobs at the four sites as it committed to tens of billions of dollars in additional investment.
Chief Executive David Ricks said in a statement the boosted capital spending underscores the company's "optimism about the potential of our pipeline" and determination to "stay ahead of anticipated demand for safe, high-quality, FDA-approved medicines of the future."
The move, announced at a Washington news conference, comes as Trump proceeds with a deluge of tariff actions and proposed tax cut extensions designed to incentivize global companies to invest in the United States. Trump's administration is also undertaking deep job cuts across the US regulatory universe that could affect such processes as the application for new drugs.
The company's press release described Trump's 2017 corporate tax cut as "foundational to Lilly's domestic manufacturing investments," adding that "it is essential that these policies are extended this year."
In an interview with CNBC, Ricks said he would call on the Trump administration to address lengthy permitting times to build new facilities due to onerous requirements of the US Food and Drug Administration.
Ricks also aims to influence the "contours" of Trump's trade policy, saying "it makes no sense to punish companies that are pursuing this agenda with the administration and on behalf of the American people."
Wednesday's announcement will raise Lilly's domestic capital expansion commitment to $50 billion from $23 billion previously committed between 2020 and 2024 to construct or expand sites in the states of North Carolina, Indiana and Wisconsin.
The company is "currently in negotiations with several states and welcomes additional interest by March 12, 2025," said a press release that included a link to express interest online.
Shares of Lilly rose 1.7 percent shortly after midday.
Source: AFP
