Eli Lilly and Company today announced a $3.5 billion investment in pharmaceutical manufacturing in Pennsylvania’s Lehigh Valley. It is the largest single economic development project in the region’s history, and the largest life sciences project in state history, according to the Lehigh Valley Economic Development Corporation (LVEDC).
Lilly will build 925,000 square feet over multiple buildings and create 850 new jobs over the next five years in Upper Macungie Township, a suburb of Allentown.
Governor Josh Shapiro said Pennsylvania has committed more than $100 million to the project, $50 million in tax credits, $25 million through a PA SITES grant for site development, and a $25 million Pennsylvania First grant.
Lilly CEO David Ricks said the investment will help meet increasing demand for next-generation weight-loss medicines.
In December, Lilly became the first drugmaker to reach $1 trillion in market value, buoyed by sales of weight-loss and diabetes medications, including Mounjaro and Zepbound. The company’s Pennsylvania expansion is part of its plan to grow manufacturing in the U.S., with new facilities also planned in Virginia, Texas, and Alabama.
The development of the Lilly site will occur through the state’s PA Permit Fast Track Program, which helps develop, manage, and coordinate permitting for complex and impactful economic development and infrastructure projects.
The manufacturing complex still requires local government approvals. The company is acquiring the property at 9802 Main St. in Upper Macungie from Jaindl Land Development.
LVEDC helped put together a plan to meet Lilly’s infrastructure, utility, and workforce needs and ensure the project is completed on time.
Additional state funding will be provided to Lehigh Carbon Community College, which will play a key role in helping Lilly to build a talent pipeline by creating and expanding academic and workforce training programs in life sciences. This includes updating science programs tailored to biotechnology and advanced manufacturing careers, and adding specialized equipment used in pharmaceutical operations.
The Lehigh Valley has a growing concentration of life sciences companies, including the U.S. headquarters of B. Braun and Olympus, and operations of Thermo Fisher Scientific, Sharp, Piramal Critical Care, and OraSure Technologies.
More than 180 life sciences businesses in the region employ some 5,800 people. Employment at life sciences companies has grown by about 35% over the last ten years.
