This article first appeared on GuruFocus.
Eli Lilly (LLY, Financials) is investing big on India. The U.S. pharmaceutical business announced that it will invest over $1 billion in the country to expand its manufacturing.
Lilly is helping Indian drugmakers produce obesity, diabetes, Alzheimer’s, cancer, and autoimmune disease medicines. Patrik Jonsson, Lilly’s head of worldwide operations, said India is becoming a key element of the company’s global network due to its skill and promise.
Mounjaro, the company’s weight-loss and diabetic medicine, launched earlier this year and has shown considerable demand. Lilly is building a Hyderabad facility to manage its contract producers and maintain product quality. The location will seek engineers, chemists, and quality professionals as part of a larger hiring effort.
The investment comes as global drugmakers adapt to trade regulations and rising demand. After new U.S. taxes on imported branded medications took effect in October, many pharmaceutical businesses sought strategies to improve local and regional supply networks.
The India investment is part of Lilly’s $27 billion global development, which includes new Virginia and other operations. Staying ahead of demand for its blockbuster pharmaceuticals and producing closer to important markets is the goal.
Lilly wants to establish a long-term presence in India, a rapidly growing healthcare industry, not only cut expenses.