Allentown & Philadelphia, PA — January 30, 2026 — In a landmark economic and industry announcement, Eli Lilly and Company will invest $3.5 billion to build a cutting-edge pharmaceutical manufacturing facility in Fogelsville, Pennsylvania – “Lilly Lehigh Valley” – the largest life sciences investment in Commonwealth history. The announcement was made today by Governor Josh Shapiro and the Pennsylvania Department of Community & Economic Development, capping a competitive multi-state process and underscoring Pennsylvania’s rise as a national life sciences leader.
A Game-Changing Investment for Pennsylvania
The new state-of-the-art facility — Lilly’s first manufacturing plant in the Commonwealth — is expected to:
- Create at least 850 new full-time jobs over the next five years,
- Spur thousands of construction roles during build-out,
- Drive substantial regional supply chain activity,
- Expand capacity for next-generation injectable medicines, including advanced weight-loss therapies like retatrutide.
“We set out to win historic, life-changing deals like the one we’re announcing with Lilly today,” Governor Shapiro said. “Lilly’s commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry.”
Corporate Commitment — Patients, Jobs, and Local Impact
Lilly Chair and CEO David A. Ricks emphasized the company’s mission-driven expansion and regional integration:
“Our mission starts with patients and delivering the medicines they need. To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines. We’re creating high-quality jobs and collaborating across the region — with suppliers, educators, and workforce-development partners — to make critical medicines in the U.S. That’s our commitment — to patients, to our new Pennsylvania home and to our country.”
The press release also quotes Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations, underscoring the long-term local partnership:
“Lilly Lehigh Valley — our newest injectable medicine and device manufacturing facility — will increase access to next-generation weight-loss treatments and improve the domestic supply of essential medicines for current and future patients. Our investment here is more than just building a facility — it’s about building a shared future with the people and communities of the Commonwealth.”
Strategic State Support and Workforce Development
Pennsylvania is backing the project with a comprehensive support package, including:
- Up to $50 million in PA EDGE Tax Credits,
- A $25 million PA SITES grant,
- A $25 million Pennsylvania First grant,
- A Redevelopment Assistance Capital Program (RACP) workforce training commitment to support local talent pipelines.
Continued Biotech Momentum Across the Commonwealth
Today’s announcement builds on Pennsylvania’s recent life sciences momentum. In late 2025, Lilly selected Philadelphia as the location for its Lilly Gateway Labs, an innovation hub at 2300 Market Street dedicated to supporting early-stage scientific ventures and strengthening the region’s research ecosystem.
The Gateway Labs initiative — designed to provide flexible lab space, technical support services, and strategic partnership opportunities — marked a major investment in Philly’s burgeoning biotech ecosystem in November 2025 and signals Lilly’s multi-layered engagement across the state.
Why This Matters
Pennsylvania’s winning of this facility — from over 300 candidate sites — highlights:
- Regional infrastructure and workforce readiness,
- Competitive economic development strategy execution,
- Growing appeal for life sciences manufacturers,
- And a burgeoning innovation ecosystem that now stretches from startup laboratories to large-scale production facilities.
With a strategic footprint now spanning Philadelphia’s innovation corridor to Fogelsville’s manufacturing landscape, Pennsylvania is visibly expanding its life sciences ecosystem, creating jobs, and anchoring future growth.
