(Reuters) -U.S. drugmaker Eli Lilly (NYSE:LLY) said on Wednesday it will invest $4.5 billion to create a new center in Indiana that will focus on developing new ways to manufacture its drugs and increasing production of experimental medicines used in clinical studies.
Lilly and Danish rival Novo Nordisk (NYSE:NVO) are market leaders for a class of weight-loss treatments known as GLP-1 agonists, which work by suppressing appetite. Some analysts expect this market will reach $150 billion by the early 2030s.
While its widely popular drugs Zepbound and Mounjaro have launched in the U.S., Lilly has several other obesity and neurological disease drugs in development.
The company has invested billions of dollars to increase production of tirzepatide, the active ingredient in Zepbound and Mounjaro, as the demand for these drugs has outpaced supply for most of this year.
Its obesity pipeline includes oral drug orforglipron and an injectable drug candidate retatrutide - both in late-stage studies.
The facility, Lilly Medicine Foundry, is expected to add 400 full-time jobs, including engineers, scientists, operations personnel and lab technicians. It will be located in Lebanon, Indiana and is expected to open in late 2027.
In an interview with CNBC, Lilly CEO David Ricks said the site could increase the company's output by 400%. Lilly said new technologies developed at the Medicine Foundry will be transferred to its other manufacturing sites for full-scale production.
The facility is in addition to its previous manufacturing commitments in Lebanon, that include a $5.3 billion investment to manufacture active pharmaceutical ingredients for its latest diabetes and obesity medicines.
Lilly's total capital commitment in the United States is now over $23 billion since 2020, the drugmaker said.