Eli Lilly to Build $6.5B Houston Biomanufacturing Plant

Pharmaceutical giant Eli Lilly unveiled plans to build a $6.5 billion biomanufacturing plant in northeast Houston within the next five years, bolstering the region's bid to become a national biomanufacturing hub.

The global drugmaker had previously said it was considering Houston as one of several possible sites, but its announcement Tuesday confirms this choice and reveals a costlier project than originally expected.

The project represents the largest biotech manufacturing investment in Texas ever and one of the biggest single corporate investments in the Houston region, according to the Greater Houston Partnerships.

The 236-acre project will rise in Generation Park, a master-planned business complex near Beltway 8, about 10 miles east of George Bush Intercontinental Airport, according to Texas Comptroller records.

The plant is expected to generate 4,000 construction jobs and 615 permanent positions — including engineers, scientists, operations staff and lab technicians — the company said.

The project could also put Houston at the center of the fast-growing weight loss industry, which has exploded in recent years with the advent of injectable GLP-1 drugs such as Ozempic and Wegovy. Lilly hopes to eventually manufacture an oral GLP-1 drug called orforglipron, still pending regulatory approval, which would let patients take the weight-loss drug in pill form instead of injections.

"Our new Houston site will enhance Lilly's ability to manufacture orforglipron at scale, and if approved, help fulfill the medicine' potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food or water restrictions," said David A. Ricks, Lilly's CEO, in a statement. "This significant U.S. investment and onshoring of our API (active pharmaceutical ingredient) production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future."

The Houston plant could also be used to make other small molecule medicines across a range of therapeutic needs, from cancer treatments to immunology to neuroscience.

Timeline, details of Eli Lilly's Houston plant

With no set groundbreaking date, Lilly intends to start construction as soon as possible. Earth work is underway, and foundations and steel could rise by late 2026 or 2027, Ricks told the Houston Chronicle in an interview.

"We're in a hurry here," said Ricks. Assuming the FDA can approve its new oral GLP-1 drug next year, "We'll be on the clock to ramp this up quickly," Ricks added.

Generation Park already has much of the necessary infrastructure, but McCord Development expects to invest about $100 million for site-specific upgrades, such as roads and distribution lines, said Ryan McCord, president of McCord Development. Lilly itself will oversee the development of its own buildings.

The project site, which Lilly acquired in the past 30 days, is large enough to accommodate the potential for future expansions, McCord said.

Jobs

Hiring for the projects starting immediately, with an average salary of just over $100,000, according to the company. Education requirements for the jobs range from a high school degree to doctorate.

Although Houston lacks a large biotech workforce, Ricks said chemical industry workers could transfer many skills with the right training. San Jacinto College's new biotech manufacturing program in Generation Park will be a major help, he said.

"Those that want to repurpose their career from (the chemical) industry, or even others, can go to the San Jacinto program and learn those skills and apply for work," Ricks said.

A large presence of chemical manufacturers along the Gulf Coast will also enable Lilly to be close to its suppliers, another reason to locate in Houston, Ricks said.

Texas' business friendly environment was another major draw, he added.

Incentives, impact

Eli Lilly will receive $146 million in tax incentives from the state's Jobs, Energy, Technology and Innovation program, plus a $5.5 million grant from the Texas Enterprise Fund, said Gov. Greg Abbott, speaking at a press conference Tuesday in Generation Park.

Abbott shared a story about how Ricks asked the governor whether Texas would allow such a large manufacturing facility to move forward quickly. He offered Ricks the example of Elon Musk's Gigafactory in Austin, which rapidly transformed from an idea to operating a mile-long manufacturing complex that is still growing.

"Elon was able to complete that project, working with us, making sure that we cut into red tape to finish the project and got it done in less than 18 months," Abbott said.

Lilly is also expected to receive local incentives from the Generation Park Management District, including a sales tax rebate and property tax abatements, said Greater Houston Partnership's Craig Rhodes.

Lilly estimates that for every $1 the company spends in Houston, it will generate about $4 of economic impact, according to the company.

The Houston project is part of Lilly's broader push to onshore more of its manufacturing in the U.S. Recently, Lilly announced plans for a project in Virginia and expects to announce two additional sites later this year.

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