Eli Lilly is forging ahead with a $6.5 billion investment in Houston, planning to develop a large-scale Pharmaceutical manufacturing facility at Generation Park in the city’s northeast quadrant. The new facility, which will produce active pharmaceutical ingredients for various therapies, will be the second of four U.S. projects the company plans to announce this year.
The company should be operating the facility within five years and will be the hub of creating Lilly’s pipeline of small-molecule medicines in conditions such as cardiometabolic disease, cancer, immunology, and neuroscience. It will also be among the first sites to manufacture orforglipron, Lilly’s oral GLP-1 receptor agonist, for which the firm will pursue regulatory approval by year-end for obesity treatment.
Earlier this year, the company set out a nation-wide plan to expand domestic drug manufacturing with four new sites. The Houston project comes hot on the heels of Lilly’s announcement for a Virginia facility, with two additional sites to follow later in 2025.
Jobs and Local Economic Impact
The Houston project will create 615 high-paying jobs for engineers, scientists, and technical specialists, along with creating some 4,000 construction jobs during building. Lilly places every dollar spent in the local area at a potential fourfold multiplier from nearby industry economic activity in sectors like logistics, retail, and supply chain operations.
Lilly CEO and Chairman David A. Ricks said the project showcases the company’s commitment to increasing U.S.-based pharmaceutical manufacturing. “By onshoring production of orforglipron and other future medicines, we can provide more stable access for patients while expanding our technical capabilities in advanced manufacturing,” Ricks said.
Texas Governor Greg Abbott welcomed the announcement as one of the largest pharmaceutical manufacturing investments in the history of the United States. The Governor called Lilly’s action a testament to Texas’ business-friendly environment, highly qualified workforce, and growing reputation as a hub for life sciences innovation.
Technology and Workforce Development
The company will employ advanced technologies such as machine learning, digital automation, and data-driven quality systems to make production efficient and secure. Lilly also plans to partner with the universities in Texas to invest in workforce training and educational programs, which will supply a steady stream of talent into the state’s life sciences sector.
Edgardo Hernandez, head of Lilly’s global manufacturing operations, said that the Houston facility will be an industry leader in terms of innovation and sustainability. “We are not just adding capacity but also establishing new standards for environmental stewardship and community outreach,” he said.
Why Generation Park?
Generation Park was selected after a competitive process based on more than 300 proposals. Advantages like availability of utilities, transportation, local incentives, and available labor force were among the factors that contributed to Houston being selected as the site of preference. Lilly’s level of investment is more than the company’s initial activities under Texas incentive agreements and signifies the strategic role the location will play in the company’s global supply chain.
Eli Lilly’s multibillion-dollar investment in Houston highlights how the U.S. is prioritizing domestic pharmaceutical production and supply chain resilience. Yet Lilly is not alone in this effort. AbbVie has also committed to spending more than $10 billion on U.S. facilities over the next decade and recently broke ground on a $195 million active pharmaceutical ingredient (API) plant in North Chicago, designed to support future medicines in immunology, oncology, and neuroscience, and Lupin has also announced plans to pharmaceutical manufacturing facility in Coral Springs, Florida. Together, these projects demonstrate the industry’s collective push to strengthen American biomanufacturing.
Fact Sheet: Eli Lilly Houston Pharmaceutical Facility
Investment Value: $6.5 billion
Location: Generation Park, northeast Houston, Texas
Operational Timeline: Expected in five years
Jobs Created: 615 permanent jobs; 4,000 construction jobs
Focus Medicines: Orforglipron and other small-molecule medicines (cardiometabolic, oncology, immunology, neuroscience)
Technology Features: AI, machine learning, digital automation, combined data systems
Economic Multiplier: Each $1 spent expected to return $4 locally
Workforce Development: Collaboration with Texas universities to create future life sciences professionals
Sustainability Goals: Strong emphasis on environmental stewardship and community partnerships
