According to a report in the Fort Wayne Jounal Gazette, Eli Lilly has announced a significant investment exceeding $5 billion to expand its manufacturing facility in Lebanon, Indiana, aiming to increase the production of its highly popular weight-loss and diabetes medications, Zepbound and Mounjaro. This latest investment more than doubles the company’s initial commitment, marking the largest manufacturing investment in its extensive history, which dates back to the 19th century.

The pharmaceutical giant revealed on Friday that the expansion will build upon the $3.7 billion already allocated to the Lebanon site. Ground was broken on the facility last year, with production expected to commence by the end of 2026 and ramp up through 2028. This site will be dedicated to manufacturing tirzepatide, the key ingredient in both Zepbound and Mounjaro.

A recent study by by the Harvard school for Public Health found that, “If current trends in child obesity continue, more than 57% of today’s children in the U.S. will have obesity at age 35, according to a new study from Harvard T.H. Chan School of Public Health.”

The National Institute of Health currently suggests that the Primary prevention methods for childhood obesity are educating the child and family, as well as encouraging appropriate diet and exercise from a young age through adulthood.

Zepbound, a recently approved weight-loss treatment, along with Mounjaro, has significantly contributed to Lilly’s revenue, generating over $2 billion in sales during the first quarter of this year alone. Despite the high demand, both Eli Lilly and its competitor Novo Nordisk, which produces the weight-loss drug Wegovy, have faced challenges in meeting supply needs.

Eli Lilly’s executives have indicated that incremental production increases are anticipated to begin in the latter half of this year. Analysts project that the combined annual sales of Zepbound and Mounjaro could eventually exceed $30 billion, underscoring the tremendous potential of these treatments in the market.

The announcement has had a positive impact on Eli Lilly’s stock, with shares slightly rising to $809.70 on Friday morning, aligning with the overall performance of the S&P 500 index. This strategic investment reflects Eli Lilly’s commitment to addressing the growing demand for innovative treatments in the weight-loss and diabetes sectors.