Pharmaceutical giant Eli Lilly (LLY) has announced an additional $4.5 billion investment across two of its three Indiana manufacturing sites as sales of its weight-loss drugs take off.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The new investment brings Eli Lilly’s total capital expansion in Indiana since 2020 to $21 billion. The pharma giant is headquartered in Indianapolis, Indiana and has a sizable part of its U.S. operations in the midwestern state.
In a news release, Eli Lilly said the new manufacturing capacity will help its pipeline of potential new medicines move forward. The company also said its is growing its manufacturing capabilities due to anticipated demand for its medications, notably its new weight-loss pill called Foundayo.
Weight-Loss Drug Wars
As part of the new manufacturing investment, Eli Lilly said that it plans to incorporate new process designs and technologies at its Indiana operations. The new investment will also be used to open Eli Lilly’s first genetic medicine manufacturing facility.
The new money comes as the war with Eli Lilly’s archrival Novo Nordisk (NVO) intensifies. Novo Nordisk recently reported strong quarterly results fueled by brisk sales of its Wegovy and Ozempic weight-loss drugs, including a new pill version of Wegovy. Eli Lilly is seeking to maintain its global market share lead in the weight-loss drug category.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 19 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,262.85 implies 28% upside from current levels.
