Pharma giant Eli Lilly boosts India manufacturing with $1B investment
What's the story
Global pharmaceutical giant Eli Lilly has announced plans to invest over $1 billion in India. The investment is aimed at strengthening the country's manufacturing and supply capabilities through local drug manufacturers. The move comes as part of Eli Lilly's global expansion strategy and its efforts to leverage India's skilled workforce.
Strategic collaboration
Investment will enhance availability of key drugs
Eli Lilly's investment will focus on enhancing the availability of its key drugs, including those for obesity, diabetes, Alzheimer's disease, cancer, and autoimmune diseases. The company's president of international operations Patrik Jonsson said they are making major investments to boost manufacturing and medicine supply capacity globally. He added that India is a key hub for capability building in their global network.
Manufacturing plans
Currently, Eli Lilly relies on contract manufacturers in India
Despite launching its blockbuster weight-loss drug Mounjaro in India this year, Eli Lilly doesn't have its own manufacturing facility in the country. However, the company is working with contract manufacturers in India to expand its production capacity. The details of these collaborations remain undisclosed at this time.
Market response
Eli Lilly's investment amid US tariff concerns
Eli Lilly's investment plans come as global drugmakers are looking to bolster their US manufacturing capacity. This comes after the Trump administration imposed a 100% tariff on imported branded and patented drugs from October 1. Last month, Eli Lilly announced a $5 billion investment in a new facility in Virginia, as part of its larger $27 billion expansion plan to build four new US plants over five years.
Expansion plans
Manufacturing facility in Hyderabad to oversee contract manufacturing network
Eli Lilly is also setting up a manufacturing and quality facility in Hyderabad, India. The new hub will manage the company's contract manufacturing network across India and provide technical capabilities. Recruitment for this site has already started with plans to hire engineers, chemists, analytical scientists as well as quality control and assurance experts among others.