Eli Lilly makes Alabama history with $6B Huntsville plant
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Eli Lilly CEO David Ricks, at left, said drugs manufactured at the site are on the "cutting edge of what's happening in medicine." Photo: Derek Lacey/Axios
Eli Lilly chose Huntsville for its newest manufacturing plant — a $6 billion project and the largest single-site investment in Alabama history.
Why it matters: The project aims to transform Huntsville, and the state, into a world leader in biopharma manufacturing.
Zoom in: Announced Tuesday in downtown Huntsville, Eli Lilly plans to start work next year on a facility that will produce orforglipron, its first small-molecule GLP-1 receptor agonist headed to regulators for obesity later this year.
- The $6 billion investment could generate up to $25 billion in local economic activity, based on the company's experience elsewhere, CEO David Ricks said.
- The project is expected to create 3,000 construction jobs and 450 permanent roles with an average salary of more than $100,000, he said — "a very highly skilled workforce."
- "This site in Huntsville will be the most advanced pharmaceutical plant we've ever built," Ricks said. "It will be automated, infused with AI and really the best we can do."
What they're saying: "The key criteria for us comes down to speed of delivery," Ricks told reporters about the site's readiness. "Second is the ecosystem around it."
- That was evident at a panel Tuesday, moderated by Mae Jemison and including Ricks, Alabama Secretary of Commerce Ellen McNair, presidents of UAH and Calhoun Community College Charles Karr and Jimmy Hodges, and HudsonAlpha Institute for Biotechnology president Neil Lamb.
- HudsonAlpha's proximity was a key driver for the selection, Ricks said, with possibilities for collaboration on research and development, and UAH and Calhoun will tailor programs toward workforce readiness.
- Lilly has already conducted experiments in space, he added — "and I'm sure we'll have more."
"My moonshot would be that Alabama become a national leader ... that we are leading the world in the prevention and cure of diseases," McNair said, answering a question from Jemison.
Context: The site sits in the Greenbrier area on the north side of I-565, near Greenbrier Parkway and Polaris' plant.
- Ricks said it should take about 48 months to get the plant operational. It's set to start production in 2032.
Catch up quick: Earlier this year, Lilly announced a $27-billion commitment to build four new manufacturing sites in the U.S. as demand for weight loss and diabetes injections have risen, and as the company develops new drugs.
- Combined with $23 billion in capital spending from 2020 to 2024, the company has now committed $50 billion to new sites and expansions since 2020.
- This is the third of those four sites, per Eli Lilly. The others are a $6.5 billion effort in Texas and a $5 billion plant in Virginia.
The bottom line: "I think we can pick our head up here in Alabama in 20 years and say this has become one of the world-leading centers end-to-end for discovery, development, manufacturing and use of the latest medicines and technologies to keep people well and to help the economy," Ricks said.
Go deeper: How Eli Lilly became the new king of the anti-obesity drug market