Eli Lilly (NYSE:LLY) said today that it plans to invest $850 million in its U.S. operations in 2017. The company presented details of its plans at the Lilly Technology Center in Indianapolis, joined by federal, state and local government officials.
Lilly said it will invest in an $85 million expansion of its Trulicity device assembly operations as a part of its 5-year plan to expand manufacturing operations in the U.S. The company also officially dedicated a $140 million insulin cartridge production facility today.
The move to invest in manufacturing in the U.S. comes after President Donald Trump repeatedly urged drug- and device-makers to bring their production facilities stateside.
“Our future at Lilly is bright, as we’re on a path to launch 20 new products in a 10-year time frame,” president & CEO David Ricks said in prepared remarks. “As we have for our entire 140-year history, we continue to see Indiana and the United States as attractive places to research and make the medicines that we sell around the world.”
Executives said that over the last 5 years, Lilly has invested $1.1 billion in its diabetes products manufacturing operations in the U.S. and has increased its U.S. manufacturing workforce from 5,000 to 6,000 roles – 400 of those were in Indianapolis.
“Lilly’s announcement today is a clear example of what a fiscally sound state with a strong business climate—coupled with a world-class company—can achieve,” Indiana governor Eric Holcomb said. “I am grateful for Lilly’s continued investment in Hoosiers and in our home state, and will work to maintain the strength of the life-sciences industry and advanced manufacturing in Indiana.”
“Despite a global presence and diverse interests, Lilly’s continued investment in Indianapolis is a testament to their exceptional level of faith in our workforce and a decades-long commitment to this community,” mayor Joe Hogsett added. “As the biotech industry continues to grow in Indianapolis, Lilly remains a clear leader, bringing advancements to the field and high paying jobs to the city. I’m excited for what today’s announcement means for the company’s future and look forward to Lily’s continued advancements as their footprint in our city grows.”
Ricks also said that Lilly plans to invest more in its U.S. facilities, particularly if the country adopts more favorable tax legislation.
“The equitable treatment of foreign earnings, a lower U.S. corporate tax rate, and U.S. innovation incentives—similar to the rest of the world—will encourage significant investment in the U.S., creating economic growth and good jobs for Americans,” Ricks said. “The House Republican Blueprint with border adjustability is designed to achieve these priorities, puts America’s global companies on a level playing field with competitors around the world, and creates economic growth and employment within the U.S.”