Eli Lilly to invest over $1 billion in Indian manufacturing & supply chain for key drugs like Mounjaro. Taps local contractors to boost global output.
In a major strategic move to expand its global manufacturing footprint, pharmaceutical giant Eli Lilly has announced it will invest more than $1 billion in India over the coming years. The investment is focused on boosting the supply of its key medicines, including blockbuster drugs for obesity, diabetes and Alzheimer’s, through partnerships with local contract manufacturers.
This decision positions India as a critical hub within Lilly’s worldwide supply chain, leveraging the country’s extensive expertise in developing and manufacturing complex pharmaceuticals.
Tapping into Indian Expertise for Global Supply
“We are making significant investments to increase manufacturing and medicine supply capacity around the world,” said Patrik Jonsson, president of Lilly International. He emphasized that India is a key “hub for capability building” in the company’s global network.
While Eli Lilly does not currently own a manufacturing plant in India, the country hosts a robust ecosystem of firms that produce drugs, vials, and injectables for global pharmaceutical leaders on a contract basis. “Lilly is actively engaging with contract manufacturers in India,” the company confirmed, though specific partners were not disclosed.
A Strategic Move Amid Global Shifts
This billion-dollar investment comes at a pivotal time for the global pharmaceutical industry. The announcement follows the former Trump administration’s imposition of a 100% tariff on imported branded drugs, incentivizing companies to diversify and strengthen their supply chains.
Lilly’s strategy appears to be two-pronged: while it is investing $5 billion in a new U.S. facility in Virginia as part of a massive domestic expansion, it is simultaneously turning to India’s skilled workforce and manufacturing prowess to scale up production capacity efficiently for global markets.
Capitalizing on the Indian Market and Beyond
The investment will also support Lilly’s commercial ambitions in India itself. The recent launch of its weight-loss drug, Mounjaro, alongside Novo Nordisk’s Wegovy, has significantly raised awareness of obesity treatments in a country projected to have the world’s second-largest obese population by 2050. Sales for both drugs have reportedly doubled within months of their Indian launch.
To oversee this expanding network, Eli Lilly is establishing a new manufacturing and quality facility in Hyderabad. This hub will manage its contract manufacturing partnerships across India and provide crucial technical capabilities. Recruitment for engineers, chemists, and quality control experts for this center will begin immediately, further embedding the company’s operations within the Indian pharmaceutical landscape.
