Eli Lilly Plans $1 Billion Investment in Indian Manufacturing

Eli Lilly and Co. is set to invest over $1 billion in India to enhance its manufacturing capabilities. This strategic move aims to capitalize on India’s skilled workforce and bolster the company’s global expansion efforts. The investment will facilitate access to essential treatments for conditions such as obesity, diabetes, Alzheimer’s disease, cancer, and autoimmune disorders.

Currently, Eli Lilly does not possess its own manufacturing facility in India. Instead, the company plans to form partnerships with local firms specializing in the production of complex medications, vials, and injectables. These collaborations are expected to increase the availability of Lilly’s therapies in the Indian market.

Manufacturing Hub in Hyderabad

In conjunction with its partnerships, Eli Lilly is establishing a manufacturing and quality facility in Hyderabad, located in southern India. This new hub will oversee the company’s contract manufacturing network across the country and will be equipped with advanced technical capabilities. Recruitment for the Hyderabad site is scheduled to begin immediately, with the company seeking to hire engineers, chemists, analytical scientists, quality control and assurance experts, as well as managerial staff.

The expansion into India follows Eli Lilly’s recent launch of the Mounjaro Kwikpen in August 2023. This innovative once-weekly injector is priced at 14,000 rupees (approximately $160) for its 2.5 mg dose. The Mounjaro Kwikpen is available in six dose strengths, with monthly prices escalating to 27,500 rupees for the highest dosage. This product launch came shortly after approval from India’s drug regulator in June.

The competitive landscape in the Indian pharmaceutical market is intensifying, particularly with the introduction of Novo Nordisk’s Wegovy, a similar weight-loss treatment. Wegovy is available in multiple dose strengths, with monthly prices ranging from 17,345 rupees for the smallest doses to over 26,000 rupees for the highest strengths.

Eli Lilly’s stock has seen an upward trend, rising by 1.32% to reach $850.97 at the last market check on Monday. The significant investment in India’s manufacturing sector illustrates Eli Lilly’s commitment to expanding its presence in one of the world’s largest pharmaceutical markets. As the company continues to innovate and adapt to local needs, its partnerships and new facility in Hyderabad are poised to play a crucial role in meeting the healthcare demands of the region.