Lilly(US:LLY) CNBC·2025-12-09 20:30Core Viewpoint - Eli Lilly is investing $6 billion to build a manufacturing plant in Huntsville, Alabama, to enhance production of its experimental obesity pill and other drugs, as part of a broader strategy to strengthen domestic manufacturing capabilities and supply chain resilience [1][2][3]. Group 1: Investment and Expansion Plans - The new Alabama facility is part of Eli Lilly's plan to invest at least $27 billion in four new U.S. manufacturing plants, following $23 billion in investments since 2020 [2]. - Construction of the Alabama plant is expected to begin this year and be completed by 2032 [2]. Group 2: Product Focus and Market Position - The additional production capacity for Eli Lilly's obesity pill, orforglipron, is critical as the company aims to file for approval and maintain its market position in the growing GLP-1 segment [4]. - Eli Lilly and its competitor, Novo Nordisk, have faced supply shortages for their existing products due to increased demand, although they have managed to resolve some of these issues [4]. Group 3: Regulatory and Economic Context - Eli Lilly's obesity pill received a priority review voucher from the FDA, which will expedite the drug's assessment process [5]. - The company has been motivated to increase U.S. production due to previous threats of tariffs on imported pharmaceuticals, although recent drug pricing agreements have alleviated some concerns [5]. Group 4: Job Creation - The Alabama manufacturing site is projected to create 450 permanent jobs, including roles for engineers, scientists, operations personnel, and lab technicians, along with 3,000 construction jobs [6].