New York, Jan 31, 2026, 09:59 EST — The market has closed.
Shares of Eli Lilly (LLY.N) finished Friday up about 1.3%, closing at $1,037.15. The boost came after the company unveiled a $3.5 billion plan for a new manufacturing facility in Pennsylvania. This plant will produce injectable weight-loss drugs, including retatrutide—a next-gen medication Lilly says has outperformed Zepbound. “All these sites, including this one, will be really state of the art manufacturing to last many decades to come,” CEO David Ricks said in Allentown. Drugmakers like Pfizer and Merck & Co are also expanding U.S. capacity amid Donald Trump’s threat of import tariffs. Meanwhile, Lilly is racing Novo Nordisk for U.S. approval of an oral weight-loss pill, which it plans to price at $150 a month and launch in several countries. (Reuters)
Markets are closed until Monday, shifting attention to how this spending spree will impact supply in 2026 and beyond. Manufacturing remains the bottleneck for blockbuster obesity drugs, so any hint of expanded capacity could reshape outlooks for volumes and margins down the line.
In Europe, the European Medicines Agency’s Committee for Medicinal Products for Human Use declined to approve a separate indication for Mounjaro to treat HFpEF — heart failure with preserved ejection fraction, where the heart pumps normally but fails to fill properly — in adults with obesity. Despite this, the EU regulator said it will incorporate data from the submission into the drug’s product information for prescribers. (European Medicines Agency (EMA))
Lilly announced its new facility in Fogelsville, Lehigh Valley, will generate 850 permanent jobs and roughly 2,000 construction positions, targeting operational status by 2031. “Our mission starts with patients and delivering the medicines they need,” Ricks said in the company statement. Pennsylvania Governor Josh Shapiro hailed the investment as a significant boost for the region’s workforce efforts. (PR Newswire)
Demand stands out clearly. Zepbound and Mounjaro together generated $10 billion in sales during the third quarter, helping Lilly report a profit of $5.58 billion on $17.6 billion in revenue, according to the Associated Press. (AP News)
Up next, earnings: Lilly plans to release its fourth-quarter results on Feb. 4, followed by a conference call at 10 a.m. Eastern, the company confirmed. (PR Newswire)
Investors are keenly awaiting updates on near-term supply for its obesity drugs, beyond just long-term construction plans. Any new guidance on manufacturing costs, pricing, and market access—covering who pays, how much, and where—usually moves the stock fast.
The new Pennsylvania project is a long-term, capital-intensive effort, and the regulatory hurdles for expanding blockbuster drug uses remain unpredictable. If regulators clamp down on obesity drug pricing or reimbursement, it could disrupt near-term prospects before the physical expansion makes a difference.
When U.S. markets reopen, Lilly’s shares will juggle a long-term capacity gamble against upcoming regulatory and earnings news. Investors will focus on Feb. 4, when the company’s executives will field questions about 2026 supply strategies, pricing, and demand for Zepbound and Mounjaro.
