:max_bytes(150000):strip_icc()/GettyImages-2183999999-ce91220936984acfb74a7654c2295d18.jpg "Eli Lilly’s Weight-Loss Drugs Drove Its Stock Higher This Year. A New Plant in Alabama Could Boost Production")
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Key Takeaways
- Eli Lilly said it plans to build a $6 billion facility in Alabama to produce its experimental weight-loss pill, orforglipron.
- The drugmaker anticipates seeking approval for orforglipron from regulators by the end of the year.
With demand for weight-loss drugs soaring and an agreement with the White House to produce more medicine in the U.S., Eli Lilly (LLY) is taking steps to boost its domestic output.
The drugmaker said Tuesday it plans to build a $6 billion facility in Huntsville, Alabama to make medicines including orforglipron, its experimental pill to treat obesity and Type 2 diabetes. The company plans to submit orforglipron to global regulatory agencies for approval by the end of the month.
Eli Lilly also said it expects to use machine learning and artificial intelligence systems to streamline operations at the Huntsville site.
Why This Is Significant
Eli Lilly’s plans to build a new plant in Alabama represents the latest in a string of recent commitments to American facilities, amid growing demand and pressure from the Trump administration to expand domestic manufacturing.
The announcement comes after CEO David Ricks took part in a White House ceremony last month, where the company agreed to reduce prices of weight-loss drugs and increase manufacturing in the U.S. In exchange, the Trump administration agreed to give Eli Lilly three years of tariff relief, and assurances it will not be subject to future government price mandates.
Shares of Eli Lilly climbed about 1% Wednesday. They’ve added nearly 30% in 2025, outpacing the S&P 500’s 17% gain.
