Eli Lilly (LLY.US) announced on Monday its plans to invest over $1 billion in India over the coming years, working with local pharmaceutical manufacturers to advance production and supply network development while leveraging India's skilled workforce to support its global manufacturing expansion strategy.
The core objective of this investment is to enhance supply capabilities for the company's major medications, covering treatments for obesity, diabetes, Alzheimer's disease, cancer, and autoimmune diseases. Patrick Johnson, President of Lilly International, emphasized: "The company is making substantial investments in global manufacturing and drug supply capacity building, with India becoming a crucial hub for capability development within its global network."
Notably, while Eli Lilly launched its blockbuster weight loss drug Mounjaro in the Indian market this year, it has not yet established its own production facilities locally. Multiple contract manufacturers in India are currently developing complex formulations, vials, and injectable products for multinational pharmaceutical companies. The company stated it is actively collaborating with Indian contract manufacturers but has not disclosed specific partnership details.
This investment plan coincides with the Trump administration's implementation of 100% tariffs on imported branded and patent drugs starting October 1st, prompting global pharmaceutical companies to accelerate capacity expansion in the United States. Previously, Eli Lilly announced a $5 billion investment last month to build a new facility in Virginia, as part of a five-year plan to construct four new factories in the US with a total investment of $27 billion.
In the Indian market, the launch of Mounjaro and Novo Nordisk's (NVO.US) Wegovy has significantly increased awareness among Indian patients regarding obesity treatment. Projections indicate that by 2050, India will become the world's second-largest country by obese population, and sales of these two drugs have doubled within months of their market launch.
Facing intensifying competition from Indian generic drug companies—particularly the upcoming wave of generic versions of semaglutide (the core component of Wegovy) as patents expire next year—Eli Lilly is preparing for increasingly fierce competition.
The company is also establishing a new manufacturing and quality center in Hyderabad, southern India, expanding its presence beyond the existing Global Capability Center in Hyderabad. This new center will oversee its contract manufacturing network in India and provide technical support. Recruitment has begun immediately, with plans to hire engineers, chemists, analytical scientists, quality control and quality assurance specialists, and management personnel to support the localized implementation of its global supply chain strategy.