Eli Lilly says its injectables pipeline and Trump-era tax laws prompted the decision to build new plant in North Carolina.

Gareth Macdonald

January 24, 2020

2 Min Read
Trump tax and pipelines behind Lilly’s $470m NC injection
Image: iStock/Vepar5

Eli Lilly says its injectables pipeline and Trump-era tax laws prompted the decision to build new plant in North Carolina.

Earlier this week Lilly announced it would build an injectable drug manufacturing facility in Durham County, North Carolina as part of a $470 m investment.

The facility located at Research Triangle park will make injectable drugs and delivery devices according to Lilly, which said it expects to create more than 460 new jobs.


Image: iStock/Vepar5

A Lilly spokeswoman told us “The new site is expected to be operational by 2023, and it will primarily support the US market.”


CEO David A Ricks said the new plant would help Lilly prepare to make “new medicines coming from our robust pipeline in the future.”

Lilly has bought a number of injectable drug products in recent years.

For example, earlier this month it acquired skin disease drug developer Dermira for $1.1bn in a deal that included the injectable dermatitis monoclonal antibody candidate, lebrikizumab.

The investment also reflects Lilly’s commitment to the US according to Ricks, who cited changes to tax laws as a factor.

“In the past two years, we have invested billions of capital in new U.S.-based manufacturing because the 2017 tax reform rebalanced the playing field in favor of the American worker. We’re excited to be bringing more of these high-skill, high-wage advanced manufacturing jobs to North Carolina.”

The tax legislation which was signed into law by US President Donald Trump in December 2017 were designed to incentivize industry to manufacture products in the US.

Level playing field

The Lilly project will be supported by a Job Development Investment Grant (JDIG) approved by the North Carolina’s Economic Investment Committee.

Under the grant Lilly could receive reimbursement to the company of up to $8,689,500, spread over 12 years based on its achievement of specified investment and job creation targets.

In addition, because Durham County is classified as a tier 3 region Lilly is required to move as much as $2,896,500 into the state’s Industrial Development Fund – Utility Account.

According to North Carolina the account helps rural communities finance necessary infrastructure upgrades to attract future business.

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