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Released November 18, 2025 | GALWAY, IRELAND
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
Eli Lilly and Company (Indianapolis, Indiana) has announced plans to expand its European manufacturing base with a US$3 billion investment in the Netherlands that will support the rollout of its new obesity drug, orforglipron, and others.
New Dutch Plant
U.S. pharma major Eli Lilly and Company (Indianapolis, Indiana) has announced plans to spend US$3 billion to build an oral medicines manufacturing facility in Katwijk, Netherlands. The decision follows an aggressive expansion plan announced for the U.S. earlier this year, where it plans to spend US$27 billion on four new production plants.
A Phased Approach
The new plant in south Holland will be constructed in two phases, comprising a 753,000-square-foot (sqft) facility to start and another 800,000-sqft facility to follow. The project will create 1,500 construction jobs and 500 permanent positions. Located within the Leiden Bio Science Park, the plant will support Lilly's growing portfolio of oral solid medicines in cardiometabolic health, neuroscience, oncology and immunology. The company claimed the facility will boast a number of "innovative capabilities," including dock-to-dock automation and material flow, paperless manufacturing, process analytical technology, and spray-dried dispersion that allows oral medicines to be more effectively absorbed. It will also be ready to produce its new obesity pill, orforglipron, which is still awaiting approval.
"With extensive investments already underway in the U.S., our planned expansion in Europe further strengthens our ability to deliver medicines to patients worldwide," said David A. Ricks, Lilly's chief executive officer. "Localized manufacturing ensures we can quickly respond to meet regional demand and accelerate distribution within Europe. Leiden Bio Science Park offers access to a skilled workforce, reliable infrastructure and proven pharmaceutical manufacturing capabilities."
A Warm Welcome
The investment was praised by the Dutch government. "I'm truly proud that Lilly has chosen the Netherlands, Katwijk and the Leiden Bio Science Park after considering many locations across Europe," said Vincent Karremans, Minister of Economic Affairs of the Netherlands. "The arrival of Lilly will not only bring new jobs and investments but also boost collaboration in the field of innovative medicines, helping us work together on solutions that truly improve people's health and lives."
A New Kind of Weight-Loss Drug
The new site will also be geared towards the production of Lilly's new type-2 diabetes and obesity drug, orforglipron. It is the company's first oral, small-molecule GLP-1 receptor agonist that will be submitted to global regulatory agencies by the end of this year. It is aiming for U.S. Federal Drug Administration (FDA) clearance by next March. Whereas many of the market's most successful weight-loss drugs, like Wegovy and Zepbound, are injectables, Lilly claims its pill can be taken once a day at any time and without any food or water restrictions. Novo Nordisk (Copenhagen, Denmark) is also developing an obesity pill version of Wegovy and is hoping for FDA approval by the end of this year.
The Profitable War on Obesity
In 2024, global sales of weight-loss medications topped US$15 billion, with the U.S. leading the charge. However, in the coming decade, sales are predicted to rocket to US$150 billion by 2035 according to the latest estimates from Morgan Stanley. The pace of adoption internationally is likely to be higher than in the U.S. over the next 10 years. The new estimate is a significant bump from the previous prediction of US$104 billion. According to Morgan Stanley the key drivers will be:
- Greater supply: Supply shortages have been reduced and additional production investment is underway.
- Clinical benefits for new diseases: Evidence that obesity drugs can also be used in the treatment of conditions such as coronary heart disease and stroke, hypertension, kidney disease and sleep apnea.
- Expanded payer coverage: Insurance coverage is likely to expand as obesity drugs are approved to treat new diseases. Prices will also fall.
- Introduction of pills: Some drugmakers are successfully developing obesity drugs in pill form instead of injectable medications, making them easier to take and more popular in the long run.
- Next delivery mechanisms: Companies are developing innovations that could improve the way the drugs are taken, with new dosing schedules that could be reduced from the typical weekly dose to monthly or even less frequently.
Key Takeaways
- Eli Lilly to invest US$3 billion in new Dutch oral medicines plant
- Plant will also manufacture new obesity pill, orforglipron
- Weight-loss drug market to rocket from US$15 billion in 2024 to US$150 billion by 2035
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