What Does Eli Lilly’s US$3bn Dutch Pharma Investment Mean?

Eli Lilly and Company has announced an investment of US$3bn for a new manufacturing facility in the Netherlands. The site is intended to increase the firm's production capacity for oral medicines for distribution to patients globally.

The new development will be located at the Leiden Bio Science Park in Katwijk. Its primary function will be to expand Eli Lilly's ability to manufacture oral solid-dose medicines that could strengthen its international supply chain. This facility is part of a wider investment in Eli Lilly’s manufacturing infrastructure across Europe.

Expanding oral medicine manufacturing in Europe

This latest site joins an existing European network with facilities in France, Ireland, Italy and Spain. The announcement follows similar plans for new sites in Ireland and Germany. Eli Lilly’s portfolio covers cardiometabolic health, neuroscience, oncology and immunology.

Once it becomes operational, the Katwijk facility will be one of the locations producing or forglipron.

This product is Eli Lilly’s first oral small molecule GLP-1 receptor agonist. A GLP-1 receptor agonist is a type of treatment that emulates a hormone in the body that helps to regulate blood sugar and appetite.

According to Eli Lilly, it intends to submit orforglipron for regulatory approval in the obesity treatment category before the end of the year.

Advanced production and pharmaceutical technology

The plant is set to utilise advanced production systems. These include dock-to-dock automation: a system where materials are handled automatically from the point of goods-in through to the distribution of the finished product.

This integrates and automates the material flow, removing the need for manual transfers. The site will also implement paperless manufacturing processes and process analytical technology.

It will use a method known as spray-dried dispersion, which can improve how oral medicines dissolve within the body, thereby enhancing their absorption and efficacy.

This investment will also lead to job creation with 500 new full-time positions in engineering, scientific and operational fields.

An additional 1,500 construction jobs could be created during the building phase, which is scheduled to start in 2026 pending final government permits.

Strategic growth and regional collaboration

David Ricks, Chair and CEO at Eli Lilly, says: “With extensive investments already underway in the US, our planned expansion in Europe further strengthens our ability to deliver medicines to patients worldwide. Localised manufacturing ensures we can quickly respond to meet regional demand and accelerate distribution within Europe.”

“Leiden Bio Science Park offers access to a skilled workforce, reliable infrastructure and proven pharmaceutical manufacturing capabilities," he adds.

"We look forward to working closely with the EU national and local governments to create a more favourable and predictable policy environment open to fully harnessing innovative medicines to deliver faster access to patients.”

Elsewhere, Vincent Karremans, the Dutch Minister of Economic Affairs, says: “I’m truly proud that Lilly has chosen the Netherlands, Katwijk and the Leiden Bio Science Park after considering many locations across Europe. The arrival of Lilly will not only bring new jobs and investments but also boost collaboration in the field of innovative medicines, helping us work together on solutions that truly improve people’s health and lives."

The Netherlands' high ranking in international comparisons for its life sciences business climate was noted by Eli Lilly as a contributing factor in its decision. Eli Lilly also pointed to the benefits of connecting with local universities, start-ups and the wider life sciences ecosystem in the South Holland region.

Edgardo Hernandez, EVP and President of Lilly Manufacturing Operations, explains: "At Lilly, we are investing in next-generation manufacturing facilities around the world to ensure our medicines are made and distributed closer to the communities and patients we serve.”

This new facility is a component of Eli Lilly's broader global manufacturing growth strategy, which includes expansions in the US with facilities being developed in Texas and Virginia, and an existing site in Puerto Rico being expanded.