Eli Lilly commits USD3B to expand production of weight-loss drugs in China

CHINA—Eli Lilly has announced a USD3 billion investment to expand its manufacturing capabilities in China, positioning itself to meet anticipated demand for orforglipron, its promising oral weight loss medication.

The pharmaceutical giant revealed the 10-year commitment through WeChat, simultaneously disclosing that it submitted an application to China’s National Medical Products Administration (NMPA) for orforglipron’s approval to treat type 2 diabetes and obesity in late 2025.

The company plans to make this investment through two main ways: expanding existing facilities and partnering with local manufacturers.

Lilly will increase its incretin injection production capacity at its Suzhou plant while adding oral solid-dosage-form production capabilities in Beijing.

Additionally, the drugmaker will collaborate with multiple Chinese production partners, beginning with a USD200 million partnership with Pharmaron, a Chinese contract development and manufacturing organization.

Building on decades of presence

Lilly’s Suzhou manufacturing site has served as a cornerstone of the company’s Chinese operations since its establishment in 1996.

The facility recently received a USD 212 million investment in October 2024, initiating a major expansion to boost production of diabetes and obesity treatments.

Huzur Devletsah, Eli Lilly’s vice president and general manager for China, emphasized the strategic importance of the Beijing expansion, stating it demonstrates the company’s dedication to strengthening its complete supply chain system to serve Chinese patients more effectively.

This latest commitment brings Lilly’s total investment in China to nearly USD6 billion, reflecting the country’s critical role in the company’s global manufacturing strategy.

The approach mirrors Lilly’s worldwide expansion efforts for orforglipron production.

In February 2025, the company announced the fourth and final manufacturing facility it plans to build in the United States as part of a massive USD27 billion investment initiative.

At least three of these American facilities will focus on producing weight loss therapies, including orforglipron.

Strong clinical results drive expansion

Orforglipron, a once-daily oral glucagon-like peptide-1 receptor agonist, delivered impressive results in Phase III trials, achieving 12.4% weight loss over 72 weeks in overweight adults at the highest dose.

GlobalData projects that orforglipron could generate USD 13 billion in global sales by 2031 if regulatory approvals proceed as expected.

Anticipating substantial demand, Lilly has already accumulated nearly $550 million worth of orforglipron-related inventory in the United States.

The company’s weight-loss portfolio continues to drive remarkable growth, with Lilly reporting a 45% increase in revenue in 2025.

This surge comes largely from sales of Zepbound and Mounjaro, which generated USD 13.5 billion and USD 23 billion, respectively, highlighting the market’s robust appetite for effective obesity treatments.