(Source: Eli Lilly and Company)
In what will be the largest single investment in Lehigh Valley history — and the largest life sciences project in Pennsylvania history — Eli Lilly and Company will invest $3.5 billion in a new pharmaceutical manufacturing facility. The site will serve as Lilly’s newest injectable medicine and device manufacturing facility that will produce next-generation weight-loss therapies, including retatrutide, a first-in-class investigational GIP, GLP-1 and glucagon triple hormone receptor agonist.
“Our mission starts with patients and delivering the medicines they need,” said David A. Ricks, Lilly chair and CEO. “To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next‑generation weight-loss medicines. We’re creating high‑quality jobs and collaborating across the region—with suppliers, educators, and workforce‑development partners—to make critical medicines in the U.S. That’s our commitment—to patients, to our new Pennsylvania home and to our country.”
In December, Lilly became the first drugmaker to reach $1 trillion in market value, buoyed by sales of weight loss and diabetes medications including Mounjaro and Zepbound. This is the fourth new U.S. manufacturing site Lilly has announced since February 2025, as part of its commitment to bolster domestic medicine production.
Since 2020, Lilly’s capital expansion commitments total more than $50 billion and include:
New sites in Alabama, Pennsylvania, Texas, Virginia, North Carolina and Indiana
Development of the new Lilly Medicine Foundry in Indiana
Site expansions in Puerto Rico and at the Lilly Technology Center in Indianapolis
Acquisition and expansion of Lilly’s manufacturing site in Wisconsin
Lilly Lands In Lehigh Valley
In Pennsylvania, Lilly will build 925,000 square feet over multiple buildings and create 850 new jobs over the next five years at the Fogelsville Corporate Center in Fogelsville. Construction is expected to begin in 2026, and the site will be operational in 2031.
The Lehigh Valley site was selected from more than 300 applications, partly based on its proximity to STEM universities, its technical manufacturing economy, and its existing infrastructure. In addition, with increasing demand from the biotech industry, the region offers convenient access to utilities, transportation, and favorable zoning and incentives.
“Lilly Lehigh Valley—our newest injectable medicine and device manufacturing facility—will increase access to next-generation weight-loss treatments and improve the domestic supply of essential medicines for current and future patients,” said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations. “Our investment here is more than just building a facility—it’s about building a shared future with the people and communities of the Commonwealth. Through meaningful partnerships in Pennsylvania, we’re committed to fostering collaboration, driving innovation, advancing environmental stewardship, and creating lasting positive impact that extends far beyond our facility walls.”
The Pennsylvania Department of Community & Economic Development has committed more than $100 million to the project: $50 million in tax credits through the PA Edge Tax Credit Program, a $25 million grant through the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) Program, and a $25 million Pennsylvania First grant.
“Lilly’s commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry,” said Governor Josh Shapiro.
The Lehigh Valley Economic Development Corporation (LVEDC) played a key role in Lilly’s competitive site selection process, coordinating with state officials and convening local and regional partners to put together a plan to meet the company’s infrastructure, utility, and workforce needs and ensure that the project can be completed on time.
“Today, Eli Lilly and Company write the first page of a new chapter – the era of life sciences – in the Lehigh Valley’s proud history of making things in America,” said Don Cunningham, LVEDC President & CEO .
The development of the Lilly site will occur through the state’s PA Permit Fast Track Program, which helps develop, manage, and coordinate permitting for complex and impactful economic development and infrastructure projects. The project was coordinated at the state level by Gov. Shapiro’s BusinessPA team and involved top level officials including Pennsylvania Secretary of Community and Economic Development Rick Siger and Chief Transformation and Opportunity Officer Ben Kirshner.
Additional state funding will be provided to Lehigh Carbon Community College, which will play a key role in helping Lilly to build a talent pipeline by creating and expanding academic and workforce training programs in life sciences. This includes updating science programs customized for biotechnology and advanced manufacturing careers and adding specialized equipment utilized in pharmaceutical operations.
“This announcement further proves that our Economic Development Strategy is working to attract historic, new investments to Pennsylvania,” said Siger. “We will keep competing for major projects like this one that will continue to strengthen our life sciences industry, create good-paying jobs, and fuel economic growth across the Commonwealth.”