03:16 PM EST, 01/30/2026 (MT Newswires) -- Eli Lilly ( LLY ) said Friday it intends to invest more than $3.5 billion in a new facility in Pennsylvania as part of its commitment to boost drug production in the US.

The planned site in the Lehigh Valley will serve as the company's latest injectable medicine and device making facility that will produce weight-loss therapies, including retatrutide, it said in a statement.

"To meet increasing demand, we're expanding our US manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines," Lilly Chief Executive David Ricks said.

The company expects groundbreaking this year, while the site will be operational in 2031.

Lilly shares were up 1.9% in Friday late-afternoon trade. The stock is down 3% so far this year.

Lilly said that since 2020, its capital expansion commitments amount to more than $50 billion and include new sites in Pennsylvania, Texas, Virginia, Alabama, North Carolina, and Indiana.

Last month, the company said a late-stage trial of retatrutide yielded encouraging results. Lilly is testing retatrutide in non-diabetic adults with obesity and knee osteoarthritis.

In October, Lilly raised its full-year outlook and reported third-quarter results above market expectations as sales of its Mounjaro diabetes treatment and weight-loss drug Zepbound more than doubled year over year.

The company is scheduled to report fourth-quarter results Wednesday.

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