At first, Eli Lilly wasn’t interested in building in Pennsylvania.
Six months ago, the state came in second place for a major development that the worldwide pharmaceutical giant decided to build in another state, according to Pennsylvania Gov. Josh Shapiro.
But the governor wouldn’t take no for an answer.
“I immediately got back on the phone with (Eli Lilly CEO) Dave (Ricks) … to talk about how we had something to offer for their next investment, to learn what they needed and to better position ourselves for the future,” Shapiro said.
On Friday, Eli Lilly unveiled its plans for a $3.5 billion pharmaceutical plant to be built on Main Street in Upper Macungie Township. It’s one of four multi-billion-dollar facilities announced by Lilly in the past few months, part of a $50 billion capital plan for the drug maker.
The Lehigh Valley and three other sites were chosen out of 300 applications.
“They listened. We are grateful for that,” Shapiro said.
Shapiro called Lilly’s plan the largest life sciences investment in state history. The Lehigh Valley Economic Development Corporation called it the largest regional economic investment in its 30-year history.
Speakers before the standing-room-only crowd of more than 200 people described the investment as “once in a generation” and life changing for the 850 people who will wind up working there. Videos projected on three screens at the Da Vinci Science Center in Allentown portrayed Eli Lilly as a producer of life-saving, life-changing medications.
Ricks said the Lehigh Valley plant will produce weight-loss drugs, including Zepbound and Retatrutide. Retatrutide’s FDA approval is pending. Ricks said he hopes to apply by the end of 2026 with an eye toward approval in 2027.
He admits he’s taking a risk moving ahead with the factory before one of the two drugs to be made there is approved, but “our business is about taking risks,” he said.
Pharmaceutical companies are always working against the clock.
“The currency of business for us is about time. We run a business that every product we make will go off patent and become worth zero,” he said.
To that end, Shapiro said state and local partners have accelerated Lilly’s development process. Lilly won’t sidestep necessary permits and land development approvals, but Shapiro and others are prioritizing the Lilly plan and have assured their cooperation for a project that will provide a huge economic boost.
Why build in the Lehigh Valley? Shapiro stressed the rich tradition of manufacturing and industry dating back to Bethlehem Steel and the Valley’s silk mills.
He stressed the strength of the local workforce and resources of local colleges and university. The state has committed $5 million for training programs at community colleges or trade schools to get local workers the skills they need to work at the plant.
A new interchange off Interstate 78 also benefits the plant proposed on a 150-acre parcel at 8810-9802 Main St. in the Fogelsville section of Upper Macungie Township.
And the state committed $100 million in economic development incentives to attract Lilly to the Lehigh Valley.
The facility will create 2,000 construction jobs in addition to the plant jobs. Ricks said the average wage for a worker in a Lilly facility is $100,000 a year.
“These are high value jobs that change the trajectory of families,” he said.
A news release from Eli Lilly says the plant should be operational by 2031, although Ricks said during the presentation Friday that he hopes to ship the first pallet of medications from the facility in three years.
Lehigh Valley Economic Development Corporation CEO Don Cunningham was credited for getting local stakeholders to buy in, including landowner David Jaindl, Upper Macungie Township officials, the Parkland School District, Lehigh-Carbon Community College President Ann Bieber, PPL Electric Utilities and UGI gas.
The son of a steel worker, Cunningham said it took a century for Bethlehem Steel to transform the Lehigh Valley economy. This plant will bring sweeping changes in just a few years.
It cements the state and the Lehigh Valley as leaders in the life science industry, Shapiro said. Lilly will join B.Braun and Orasure as Lehigh Valley life-sciences manufacturers.
Shapiro said 100,000 Pennsylvanians work in a life sciences field. The state makes half of all vaccines produced in the U.S., and its universities are fourth in the nation in life sciences research and development spending.
“We will continue to lead as a manufacturing hub for cutting edge medicines,” Shapiro said.
Ricks said obesity drugs help people lose weight before they develop weight-related diseases and conditions. He said seven out of 10 Americans are overweight. If they can lose weight, their health and quality of life vastly improves, he said.
“If we can arrest obesity in our country, we can change the health outcomes for millions and millions of people,” Ricks said.
Pennsylvania Gov. Josh Shapiro and Eli Lilly & Co. CEO David Ricks put a pin on the map of the Lehigh Valley showing the location of the new Eli Lilly pharmaceutical plant in Upper Macungie Township. They placed the pin at the Da Vinci Science Center in Allentown on Jan. 30, 2026.Rudy Miller | For lehighvalleylive.com