Eli Lilly Plans $3B Investment to Expand Next-Gen GLP-1 Weight-Loss Production in China

On March 12, a major US pharmaceutical company announced intentions to invest $3 billion over the next decade to significantly expand its supply chain capacity in China. This investment aims to increase production of its next-generation oral medication, a small molecule GLP-1 receptor agonist currently awaiting regulatory approval in the country.

The company plans to collaborate with local Chinese manufacturers to ramp up production of the drug, enhance the output at its Suzhou facility, and increase capacity for oral solid dosage forms at a facility in Beijing, according to a recent statement. The medication, named Orforglipron, marks the company’s first oral GLP-1 drug. The firm submitted an application for its approval as a treatment for type 2 diabetes and obesity late last year to China’s National Medical Products Administration.

Executives explained that the company will employ a hybrid approach—expanding its own production capabilities while partnering with other firms to boost supply. Besides scaling up operations at its Suzhou factory, the company intends to work with contract development and manufacturing organizations (CDMOs) in China and strengthen its procurement and supply chain management, noted an executive vice president.

Partnering with leading Chinese CDMOs will accelerate bringing innovative drugs from laboratory to market, ensuring faster access for patients. The executive also emphasized that this approach aligns with the company’s broader strategic plan to establish a long-term presence in China, fostering an agile, integrated manufacturing system that solidifies the country’s role within its global network.

The development of Orforglipron represents a significant breakthrough in treating cardiovascular and metabolic diseases. A company executive highlighted that the oral form benefits patients who prefer not to use injections and face challenges maintaining cold chain logistics, enabling earlier intervention and more consistent long-term disease management.

Separately, the company announced a cooperation agreement with Pharmaron, a Chinese contract research and manufacturing organization, to produce Orforglipron. The agreement involves a $200 million investment to enhance Pharmaron’s technological capabilities and expand joint efforts, depending on project progression.

This partnership represents a key milestone for Pharmaron’s formulation CDMO business, aiming to deliver innovative drugs to Chinese patients more efficiently and reliably. Pharmaron offers comprehensive R&D and manufacturing services, supporting numerous clients in securing drug approvals in China.

Following the announcement, Pharmaron’s shares surged—rising 5.5% to CNY 28.67 (around USD 4.18) in Shenzhen, and jumping 8.2% to HKD 20.12 (approximately USD 2.57) on the Hong Kong stock exchange.