Eli Lilly (NYSE:LLY) is making a $5.3 billion investment to expand manufacturing for its high-demand anti-obesity drug Zepbound and diabetes medication Mounjaro, marking a huge effort aimed at addressing current shortages of these popular drugs.
The company will announce on Friday plans to significantly enlarge a production site on 600 acres in Lebanon, Indiana, near its Indianapolis headquarters. With previous commitments included, Lilly’s total investment in this new site will reach $9 billion, the largest in the company's history.
Novo Nordisk (NYSE:NVO), a competitor, also faces supply challenges for its similar drugs, Ozempic and Wegovy. Both companies are committing billions to boost manufacturing to meet the rising demand.
Zepbound, launched in late 2023, is already averaging over 74,800 prescriptions weekly in the U.S., according to analysts. Mounjaro's weekly prescriptions have increased by 48% from the previous year, reaching more than 300,000.
Novo Nordisk announced in November plans to invest over $6 billion to expand production at a site in Denmark. Moreover, in February, the company agreed to spend $11 billion on manufacturing plants from Catalent.
Lilly expects the Lebanon site to start producing medicines by late 2026, with operations increasing over the next two years.
This facility will produce tirzepatide, the active ingredient in Zepbound and Mounjaro, and will also be capable of manufacturing other drugs, including potential new anti-obesity treatments pending clinical trial success and regulatory approval.