Pharmaceutical giant Eli Lilly and Company has announced plans to build a $6.5 billion manufacturing facility in Houston and is expected to create more than 4,600 manufacturing and construction jobs. Construction at the city’s Generation Park is slated to begin in 2026 and become fully operational by 2031.
The new plant will concentrate on manufacturing the firm’s small-molecule medicines across therapeutic areas, including cardiometabolic health, oncology, immunology, and neuroscience.
The Houston location will be among those manufacturing orforglipron, the company’s first oral, small-molecule GLP-1 receptor agonist, which are medications that copy the actions of the naturally occurring GLP-1 hormone that is released after eating. These drugs are used to treat Type 2 diabetes and obesity through improvement of blood-sugar control and weight loss. Lilly expects to submit to global regulatory agencies for obesity by the end of this year.
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions,” Lilly CEO David A. Ricks said in the statement.
“This significant U.S. investment and onshoring of our [active pharmaceutical ingredient] production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future.”
Generation Park is a commercial development in the Lake Houston area located just northeast of the city. The company selected it from more than 300 applications based on criteria including workforce, local incentives, access to utilities and transportation, and a favorable business environment.
“Texas is the economic engine of America because we foster innovation and empower businesses to succeed,” Texas Gov. Greg Abbott said in the statement.
“Texas is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation’s history and provide good, high-paying jobs to hardworking Texans. ... This $6.5 billion facility will not only bolster Houston’s economy, it will boost our life sciences sector and help cement Texas as a global leader in healthcare innovation.”
Among the 4,600 new jobs to be created, the firm indicates that 615 of them will be high-wage positions, including skilled engineers, scientists, operations personnel, and lab technicians.
The mega-plant is also expected to significantly boost the local economy. The company estimates that every dollar it spends will add four dollars in local economic stimulation.
Lilly said it plans to use state-of-the-art technologies, including machine learning, artificial intelligence, digitally integrated systems, and advanced data analytics. It will also rely on digital automation to streamline operations.
Edgardo Hernandez, executive vice president and president of Lilly’s manufacturing operations, said: “We are committed to sustainability, being a responsible steward of natural resources, and strengthening the communities where our employees live and work.”
In addition to Houston, Lilly earlier announced an intended site in Virginia and plans to reveal the two remaining locations later this year.
Founded in 1876, the company was named for Eli Lilly, a pharmaceutical chemist and Union army veteran during the Civil War. Headquartered in Indiana, Lilly operates offices in 18 countries, with products sold globally in 125 countries. Lilly has been listed as the most valuable pharmaceutical company in the world, with an $842 billion market capitalization.
