Eli Lilly and Company (LLY) Plans $6.5B Investment to Bolster Pipeline Production

Eli Lilly and Company (NYSE:LLY) is one of the best long-term growth stocks to buy and hold forever. On September 23, the company announced plans to invest $6.5 billion in the construction of a manufacturing facility in Texas.

The construction is part of the company’s push to boost pipeline production of the so-called small molecule drugs, including its experimental obesity pill. The $6.5 billion investment comes on the heels of the company’s plans to spend at least $27 billion to build four new domestic manufacturing plants, announced early in the year.

Eli Lilly is ramping up manufacturing capacity in the race to bring its obesity pill, orforglipron, to market. The company is also striving to strengthen its dominance in the rapidly growing GLP-1 market.

“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as an obesity and type 2 diabetes treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions,” Eli Lilly CEO David Ricks said.

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical corporation focused on discovering, developing, manufacturing, and selling medicines to address unmet medical needs in areas such as diabetes, cancer, immunology, neuroscience, and obesity. The company invests in groundbreaking research, state-of-the-art manufacturing facilities, and community initiatives to expand access to its treatments and improve public health.

While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Best FMCG Stocks to Invest In and 13 Best Cryptocurrency Stocks to Buy According to Wall Street Analysts

Disclosure: None. This article is originally published at Insider Monkey.