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US pharma giant Eli Lilly plans to invest more than $1 billion in India in the coming years. The company wants to grow its manufacturing and supply chain in India. It will partner with domestic drugmakers to grow the distribution of medicines for obesity, diabetes, Alzheimer's, cancer, and autoimmune disorders.
Eli Lilly is known for a widely used weight-control medicine Mounjaro. The company right now doesn’t have any exclusive manufacturing plant in India. So, this investment is a strategic initiative to tap into India's highly skilled pharmaceutical talent and sophisticated drug-manufacturing industry. The US giant will set up a new manufacturing and quality facility in Hyderabad. This unit will handle contract production while maintaining global quality standards.
The move follows the US's recent imposition of a 100% tariff on drugs imported under patent, encouraging international drug manufacturers to expand bases globally. Previously, Eli Lilly said it would spend $5 billion on a Virginia factory as part of its wider $27 billion international growth strategy. With an expansion of its presence in India, the pharma giant is also looking to remain competitive ahead of Indian generic firms planning to bring cheaper copies of weight-loss medicines such as Wegovy.
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Eli Lilly's billion-dollar gamble is a testament to India's increasing position in the global pharma supply chain. The country is gaining attention for its low-cost manufacturing and for next-generation therapeutics and innovation and quality. It remains to be seen if this move by Eli Lilly pays off in the long run or not.
