The expansion aims to boost the production of its popular drugs, Zepbound and Mounjaro.

The company revealed its intention to double its investment in a site near its headquarters in Indianapolis. Although the production at the location is expected to commence by the end of 2026, it will take time for the output to reach optimal levels. The Lebanon, Indiana manufacturing plant began construction last year and is set to gradually increase production until 2028.

Eli Lilly's additional investment of $5.3 billion is the largest manufacturing investment in the company's extensive history, which dates back to the 19th century. The primary focus of the site will be on producing tirzepatide, the main ingredient used in both Mounjaro and Zepbound.

The weight-loss treatment, Zepbound, received regulatory approval in the United States in the fall of last year. Combined, these two drugs have already generated over $2 billion in sales for the company during the first quarter of this year. However, Eli Lilly has faced challenges in meeting the growing demand for its products, similar to its competitor, Danish drugmaker Novo Nordisk, which manufactures another popular weight-loss drug called Wegovy.

The company expects manufacturing increases to commence in the latter half of this year, which should assist in alleviating the supply shortage. Analysts have projected that Zepbound and Mounjaro could potentially generate consolidated annual sales exceeding $30 billion for Eli Lilly, according to data from FactSet.

With this significant investment, Eli Lilly aims to address the increasing demand for its sought-after weight-loss and diabetes treatments. The expansion of its Indiana manufacturing site marks a pivotal step towards meeting the needs of patients worldwide and capitalizing on the drugs' promising market potential.