Global Expansion Plan

On October 11, 2024, Lilly China announced an investment of approximately 1.5 billion RMB for upgrading the production capacity of its Suzhou plant. This upgrade aims to expand the production scale of innovative drugs for type 2 diabetes and obesity to meet the needs of Chinese patients and support the production of future pipeline products. This investment is also an important part of the largest global capacity upgrade plan in Lilly’s history.

Since 2022, Lilly's global production capacity for GLP-1 receptor agonists, injectable drugs for the treatment of type 2 diabetes and obesity, has doubled. This strategic investment will further accelerate the company's global capacity expansion, ensuring a stable and continuous supply of necessary drugs to patients. The investment is expected to create approximately 120 high-quality jobs and strengthen Lilly's innovation and excellence in pharmaceutical production in China. The expanded Suzhou plant will cater to both the European export market and the domestic drug supply.

With this additional investment, Lilly’s cumulative investment in the Suzhou plant has reached nearly 15 billion RMB. Established in 1996, the Suzhou plant now employs around 500 professionals, covering key functions such as research, production, and quality control. Lilly’s first overseas office was established in Shanghai in 1918. Today, Lilly China has more than 3,200 employees focused on R&D, manufacturing, and operations.

Earlier, on October 2, 2024, Lilly announced an additional 4.5 billion USD investment to create a new advanced production and drug development center, the Lilly Medicine Foundry. Once fully operational, the Medicine Foundry is expected to add 400 high-quality full-time jobs, including engineers, scientists, operators, and lab technicians.

Recent Performance

Lilly's revenue grew by 36% in the second quarter of 2024, largely driven by the contributions of Mounjaro (Tirzepatide – for type 2 diabetes), Zepbound (for long-term weight management), and Verzenio. Excluding the $579 million in revenue from the sale of Baqsimi (glucagon nasal powder) rights in the second quarter of 2023, revenue increased by 46% year-on-year; non-GLP-1 drug revenues grew by 17% globally and 25% in the U.S. Tirzepatide's total sales in the first half of 2024 reached $6.656 billion, a year-on-year growth of 329%. Lilly’s revenue for the first half of 2024 was $20.071 billion, a year-on-year increase of 31%, with net profits of $5.21 billion, growing 68% year-on-year.

The company has raised its full-year revenue guidance for 2024 by $3 billion. Core EPS guidance has been raised by $2.05, reaching $15.10-15.60; non-GAAP core EPS guidance has been increased by $2.60, reaching $16.10-16.60.

In Q2, several drug pipeline developments occurred: Kisunla* (donanemab-azbt) was approved in the U.S. for the treatment of Alzheimer's disease, and Jaypirca* was approved in Japan for the treatment of relapsed or refractory mantle cell lymphoma. Lilly has submitted applications in the U.S. and the EU for Tirzepatide to treat moderate to severe obstructive sleep apnea (OSA) in obese patients. Recently, Tirzepatide showed positive results in Phase 3 trials for treating heart failure with preserved ejection fraction in obese patients.

Several drugs were approved for market release in Q3. On October 30, 2024, the company will announce its latest Q3 performance updates. We are eagerly awaiting the results.