Eli Lilly CEO David Ricks Unveils $6B Alabama Plant to Produce New Obesity Pill

Eli Lilly CEO David A. Ricks has unveiled one of the most ambitious expansions in the pharmaceutical titan's history: a $6 billion manufacturing facility in Greenbrier South, Huntsville, Alabama, dedicated to producing the next generation of obesity medicines.

The plant will focus primarily on orforglipron, Lilly's highly anticipated once-daily oral obesity treatment, which analysts say could reshape a pharmaceutical market currently dominated by injectables.

Announced on 9 December 2025, the investment underscores Lilly's intent to secure long-term production capability for its fast-growing GLP-1 portfolio and to stay ahead in the increasingly fierce global weight-loss drug race.

Construction is slated to commence in 2026, with the facility not expected to reach full completion until 2032. This new site represents the third of four major new US manufacturing sites Lilly has planned. This extensive outlay is explicitly designed to secure the supply of Active Pharmaceutical Ingredients (APIs) for Lilly's revolutionary wave of weight-loss therapies, poised to redefine the global healthcare landscape.

The New Oral Front in the Weight Loss Battle

The strategic focus of the Alabama plant on orforglipron signals a major shift in the pharmaceutical arms race to dominate the anti-obesity market. Currently, the most prominent and effective treatments Lilly's own Zepbound (tirzepatide) and Novo Nordisk's Wegovy (semaglutide) are administered via weekly injection. Orforglipron, however, is a small-molecule GLP-1 receptor agonist designed to be taken as a once-daily pill, crucially without restrictions on food or water intake.

Lilly expects to submit orforglipron for global regulatory approval for obesity by the end of this year, 2025, buoyed by strong Phase III trial data. In trials, the highest dose of orforglipron led to an average body weight reduction of 12.4% (27.3 pounds) over 72 weeks.

The drug's weight-loss and blood-sugar-reduction results are comparable to those of some injectable counterparts, setting the stage for direct, fierce competition. By committing $6 billion to manufacturing the API for this single drug class, Lilly is clearly signalling its intention to address the immense supply issues that have plagued the rollout of injectable GLP-1 drugs worldwide. Lilly was recently granted an FDA fast-track voucher for orforglipron, which could accelerate its approval process.

A $6 Billion Strategic Onshoring Push

The investment represents the most significant initial private industrial investment in Alabama's history, underscoring the immense economic stakes involved. In addition to the estimated 3,000 jobs created during the construction phase (slated to begin in 2026), the fully operational facility will establish 450 permanent, high-value roles, including specialised engineers, scientists, and lab technicians. This move is part of Lilly's broader $27 billion capital expansion strategy to build four major manufacturing sites across the US.

CEO David Ricks emphasised the strategic rationale behind the vast domestic expansion, stating that it 'continues the onshoring of active pharmaceutical ingredient production, strengthening supply chain resilience and reliable access to medicines for patients in the US.'

Beyond merely increasing capacity, the Huntsville plant is planned as a 'next-generation' facility, integrating state-of-the-art technologies such as machine learning and AI, digital automation, and advanced data analytics to ensure efficient, high-quality production.

Securing the Future of Medicine Supply

By dedicating an entire $6 billion plant to API production, Lilly is taking a critical step towards mitigating future supply chain weaknesses. The lengthy construction timeline, scheduled for completion in 2032, reflects the complex, capital-intensive nature of building advanced pharmaceutical facilities.

However, it also illustrates the company's long-term commitment to securing its position as a dominant force in the global fight against obesity and type 2 diabetes, ensuring a reliable supply of medication for a worldwide patient population.

Notably, despite the multi-billion-dollar investment announcement, Eli Lilly's (LLY) stock fell 1.5% on Tuesday, extending a nine-day losing streak.