Eli Lilly Invests $6.5B in Houston Plant to Boost Obesity Pill Production

Eli Lilly & Co. is doubling down on its obesity drug ambitions with a $6.5 billion investment in a Houston manufacturing facility. The plant will focus on producing orforglipron, an experimental oral GLP-1 treatment, as pharmaceutical giants race to capture market share in the lucrative weight-loss sector.

The Houston expansion marks phase two of Lilly's $27 billion U.S. manufacturing push announced earlier this year. When operational, the site will employ 615 workers and significantly increase production capacity for small-molecule medicines targeting cardiometabolic conditions.

Investors showed muted reaction to the news, with LLY shares dipping 1.06% to $746.98 on Tuesday before slipping further in after-hours trading. The market's tepid response suggests analysts had largely priced in Lilly's aggressive expansion plans following its February capital commitment announcement.