Pharmaceutical giant Eli Lilly announced it will invest more than $1 billion in India over the coming years to expand manufacturing and supply capabilities through local drugmakers. The company aims to leverage India’s skilled workforce to strengthen its global production network.
Boosting Access to Key Medicines
The collaborations with Indian firms will increase availability of Lilly’s key drugs, including treatments for obesity, diabetes, Alzheimer’s, cancer, and autoimmune conditions. “We are making significant investments to increase manufacturing and medicine supply capacity worldwide,” said Patrik Jonsson, President of Lilly International, noting India’s strategic role in capability building.
Partnership with Local Manufacturers
Currently, Lilly does not operate its own manufacturing facility in India, which hosts multiple contract manufacturers producing complex drugs, vials, and injectables. The company confirmed it is actively engaging with these local manufacturers but did not provide further details.
Global Context and Strategic Expansion
Lilly’s investment in India comes as global drugmakers increase U.S. manufacturing capacity, partly in response to a 100% tariff on imported branded and patented drugs imposed in October. Last month, Lilly also announced a $5 billion investment in a new facility in Virginia, part of a broader $27 billion plan to build four new U.S. plants over five years.
Growing Obesity Treatment Market
Earlier this year, Lilly launched its blockbuster weight-loss drug Mounjaro in India. Alongside Novo Nordisk’s Wegovy, the launch has raised awareness of obesity treatments in a country projected to have the world’s second-largest obese population by 2050. Sales of both drugs doubled within months.
Preparing for Competition
Lilly is also anticipating competition from Indian generic drugmakers, who plan to introduce lower-cost versions of Wegovy once its main ingredient, semaglutide, goes off-patent next year.
New Facility in Hyderabad
To expand its presence, Lilly is establishing a manufacturing and quality facility in Hyderabad. The hub will manage its contract manufacturing network across India and provide technical capabilities. Recruitment will begin immediately, with plans to hire engineers, chemists, analytical scientists, and quality assurance professionals.
