Eli Lilly Snags $470M for NC Drug Manufacturing Plant

January 22, 2020 - Eli Lilly will open its first “state-of-the-art” manufacturing facility in North Carolina for the manufacturing of injectable products and delivery devices, the Indianapolis firm said Tuesday.

Lilly said the new facility at the Research Triangle Park will create 460 new positions, including scientists, engineers, quality professionals, and manufacturing operations. It has seven plants across the US, with others located in Massachusetts, Indiana, New Jersey, New York, California, Washington, and Puerto Rico. Its bulk manufacturing occurs in Indiana and Ireland.

A Job Development Grant was awarded to the company for the construction project, which is contingent on the goal of generating $4.1 billion in support of the state’s economy. “This decision will only grow the reputation of Durham and the Research Triangle Park as a leading destination for life science companies," said Democratic North Carolina Rep. Zack Hawkins.

With the $470 million grant from the North Carolina Department of Commerce, Lilly touted the government-funded move to break ground on its new manufacturing facility in Durham this year.

Lilly chairman and CEO, David Ricks, said in a prepared statement on Tuesday that the company has “invested billions of capital in new US-based manufacturing,” over the past two years, “because the 2017 tax reform rebalanced the playing field in favor of the American worker.” The 2017 tax break was a win for Big Pharma overall, according to Public Citizen.

Lilly reached the decision in collaboration with the North Carolina Department of Commerce, which supported it during the site evaluation and decision-making processes. Construction is reported to begin in Q2 and completed by 2023, leveraging $11.59 million in public incentives.

Lilly indicated last November that it also intends to invest $400 million in its Indianapolis manufacturing facilities. This is intended to create about 100 additional jobs, Lilly said.

Other pharma companies have recently moved to expand existing manufacturing operations and product portfolios. Both GSK and Pfizer reported plans on construction projects last year.

Pfizer opened a $200 million facility in Andover, Massachusetts in May 2019. Mike McDermott, president of Pfizer Global Supply, said this builds on “a strong partnership between our Research and Development and Manufacturing teams, which is especially evident in Andover.”

GSK said last September it would invest $120 million to expand its Upper Merion, Pennsylvania manufacturing facility.

“These investments will support and accelerate the transformation of our pipeline to deliver the next generation of medicines and vaccines for patients who need them,” said GSK CEO Emma Walmsley. She pointed to the move as an example of GSK’s “longstanding commitment to making innovative medicines and vaccines here in the US.”