Eli Lilly to construct a $4.5 billion research and manufacturing facility to drive drug development.

• The Lilly Medicine Foundry, a center focused on improving medication production methods, will receive a $4.5 billion investment from Eli Lilly.
• The investment aims to capitalize on Lilly's achievements with Mounjaro and Zepbound, which are gaining traction in the GLP-1 drug market.
• David Ricks, CEO of Lilly, revealed that the company has 11 obesity drugs in its pipeline and plans to focus on developing treatments for Alzheimer's disease, ALS, and other brain diseases, according to CNBC.

The company will allocate $4.5 billion to construct a facility focused on improving its drug manufacturing processes.

The Lilly Medicine Foundry, a facility dedicated to the development of new manufacturing methods, is aimed at increasing efficiency. This approach has already proven successful with Lilly's obesity and weight loss drugs Mounjaro and Zepbound, and the company hopes to apply it to the rest of its pipeline.

Lilly's foundry will be the first to integrate research and production in a single location, focusing on developing new manufacturing techniques for clinical trials.

Eli Lilly CEO David Ricks stated in an interview from the company's headquarters in Indianapolis that the goal is to scale molecules from a lab bench to medicines in a pharmacy through research and development at this site.

The center, set to open in late 2027, will be capable of producing small molecules, biologics, and genetic medicines. It will be located near Lilly's $9 billion manufacturing complex in Lebanon, Indiana, which is being constructed to produce pharmaceutical ingredients such as tirzepatide, the active ingredient in Mounjaro and Zepbound.

The construction site, with its cranes and steel frames, stands out against the flat farmland, just a 40-minute drive from Lilly's Indianapolis headquarters.

Lilly's plan to expand its success with Mounjaro and Zepbound includes investments in GLP-1 drugs, such as Novo Nordisk's Ozempic and Wegovy, which are currently popular.

By 2028, Mounjaro and Zepbound are projected to generate $50 billion in revenue, which is nearly double Lilly's full-year revenue in 2022. This presents the company with an opportunity to invest more freely, but also places a significant burden on it to discover and develop new medicines to maintain its growth trajectory in the future.

Lilly is already charting its future beyond tirzepatide and aims to develop more drugs for Alzheimer's disease and other neurodegenerative conditions like ALS.

"Dr. Dan Skovronsky, Lilly's chief scientific officer, stated that there are numerous opportunities to enhance human health that are readily available, yet often overlooked. "In our field, individuals typically focus on what is popular and then mimic the leader. As a result, many other companies are now halting their research projects in an attempt to catch up with us in the areas of obesity and Alzheimer's disease. We are currently working on the next project. My apologies.""

Skovronsky stated that Lilly aims to search for "groundbreaking concepts" in fields where the company has already established a presence, including oncology, immunology, cardiovascular disease, chronic pain, and hearing loss.

Lilly has a long history in the space between its antidepressant Prozac and its newly approved Alzheimer's drug Kisunla, but they see more work to do in the field of neuroscience.

"Ricks stated that neuropsychology is a significant unmet need, with a focus on addiction, mental health, and neurodegenerative conditions. As a result, they are investing heavily in this area. Additionally, the gains made in obesity research may help fund research in new areas."

That's not to say Lilly is done with obesity.

Lilly has 11 obesity drugs in its pipeline with different mechanisms of action and modes of delivery, including two closely watched drugs in Phase 3 trials: an experimental pill called orforglipron and another injectable medicine called retatrutide.

Lilly is investing in obesity treatment, but Rick acknowledges that other companies may explore new mechanisms that Lilly hasn't. He wants to see more pills that target multiple conditions and technologies that reduce the frequency of injections, such as short interfering RNA.

Lilly's market capitalization has increased to about $840 billion, with its stock soaring nearly 65% over the past year. Any new advances could help Lilly become the first trillion-dollar health-care company.

Lilly's hitting the trillion-dollar mark is not a goal, but rather an outcome, according to Rick.

"Creating value is the key to achieving success and ultimately reaching a larger goal, as Rick stated."