New York, January 30, 2026, 12:45 EST — Regular session
- Lilly shares climb midday following announcement of new U.S. manufacturing facility
- Drugmaker inked a $1.93 billion deal with Repertoire to collaborate on autoimmune research
- Upcoming catalyst: quarterly results and call on Feb. 4
Shares of Eli Lilly and Co (LLY.N) climbed roughly 1.6% to $1,040.80 by midday Friday, following the announcement of a $3.5 billion injection drug manufacturing facility near Allentown, Pennsylvania. The S&P 500 edged down about 0.5%, while Novo Nordisk’s stock showed little movement. (AP News)
Wall Street keeps returning to a key question: how quickly Lilly can ramp up supply of its obesity and diabetes drugs. GLP-1 medicines — which mimic a gut hormone to reduce appetite and blood sugar — have turned into the growth engine driving investor interest.
Lilly announced its Lehigh Valley facility will produce injectable weight-loss drugs, including the experimental retatrutide, which it says has surpassed its blockbuster Zepbound. Construction is slated to start in 2026, with the plant expected to be up and running by 2031. This move is part of a larger effort by drugmakers to boost U.S. manufacturing amid President Donald Trump’s threats of import tariffs on pharmaceuticals. Pennsylvania is pitching in $100 million for the project, Lilly added. “All these sites, including this one, will be really state of the art manufacturing to last many decades to come,” CEO David Ricks said. He also noted: “We’re finding these medicines are quite popular, but we still have work to do to expand access, to improve affordability.” (Reuters)
On Thursday, Trump stoked the narrative, claiming that Lilly’s CEO told him the company intended to build six large U.S. plants. Lilly has publicly committed to spending at least $27 billion to construct four new plants in the U.S. A company spokesperson noted that since 2020, Lilly has announced plans for nine new manufacturing sites across the country. (Reuters)
Beyond expanding its factories, Lilly is following the typical big pharma playbook when cash is abundant: locking in pipeline deals. Repertoire Immune Medicines announced a partnership valued at up to $1.93 billion, including an $85 million upfront payment, to develop treatments for various autoimmune diseases. “Decode provides the information that we then convert into a protein therapeutic,” Repertoire CEO Torben Nissen told Reuters. (Reuters)
Competition is heating up—beyond just the labs. According to MediaRadar, Novo shelled out roughly $487 million on U.S. ads for Wegovy and Ozempic in the first nine months of 2025. That’s more than twice the estimated $214 million Lilly spent promoting Zepbound and Mounjaro. Both companies stayed tight-lipped on their advertising budgets. “When it comes to weight loss, Lilly has that edge with Zepbound,” said Rajiv Leventhal, a senior analyst for digital health at Emarketer. (Reuters)
The Pennsylvania facility is a long-term wager — no product will roll out before 2031 — and investors have watched capacity timelines slip in the past once construction, equipment, and regulatory hurdles hit. Demand and pricing remain uncertain, particularly if payers resist more or competitors close the distance.
Investors are shifting focus to Lilly’s fourth-quarter earnings due Feb. 4. Executives are expected to address ongoing issues around supply increases, pricing strategies, and upcoming obesity drug launches. The company confirmed it will release results before a 10 a.m. Eastern conference call that day. (Nasdaq)
