The Shapiro Administration is investing $100 million in Lilly’s expansion, creating 850 permanent new jobs and approximately 2,000 construction jobs in the Lehigh Valley.
This investment by the global pharmaceutical company is the largest ever by a life sciences company in Pennsylvania history — further reinforcing the Commonwealth’s position as one of the top biopharma destinations in the country.
Since taking office, the Shapiro Administration has attracted over $43 billion in private-sector investment, creating nearly 29,000 good-paying jobs statewide.
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Fogelsville, PA – Yesterday, Governor Josh Shapiro visited the Lehigh Valley for the groundbreaking of global pharmaceutical firm Eli Lilly and Company’s new, cutting-edge pharmaceutical manufacturing facility. This event follows the Governor’s announcement in January that his Administration had secured a $3.5 billion private-sector investment from the company for this project ― the largest investment by a life sciences company in Pennsylvania history. That project is moving ahead on schedule, as the Shapiro Administration works closely with the company and local leaders to ensure a smooth and predictable permitting process and invests in site readiness for the Fogelsville location.
The Commonwealth supported Lilly’s expansion with a $100 million investment, helping create at least 850 permanent new jobs and approximately 2,000 construction jobs, while continuing to grow Pennsylvania’s robust pharmaceutical and life sciences industries.
“Today marks another historic milestone in Pennsylvania’s thriving life sciences sector and reinforces my Administration’s commitment to advancing innovation, strengthening the economy, and creating good-paying jobs across the Commonwealth,” said Governor Shapiro. “We secured this historic, life-changing investment thanks to Pennsylvania’s world-class workforce, research institutions, infrastructure, and resources, and my Administration will continue working hard to ensure Pennsylvania remains a place where groundbreaking discoveries can translate into meaningful economic opportunities and results for patients and families.”
The Pennsylvania’s Office of Transformation and Opportunity (OTO) is supporting the project via the PA Permit Fast Track Program, created by Executive Order 2024-04 to streamline the Commonwealth’s permitting process for key economic development and infrastructure projects, increase transparency, and accelerate timelines to ensure state government delivers results quickly and efficiently. As a result, Lilly was issued a stormwater permit from the Department of Environmental Protection in just 47 days — nearly 60 percent quicker than the estimated processing time.
Lilly also received a funding proposal from the Pennsylvania Department of Community and Economic Development (DCED) for up to $50 million in tax credits through the PA Edge Tax Credit Program, a $25 million grant through the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) Program, and a $25 million Pennsylvania First grant.
“Lilly’s investment is a tremendous win for Pennsylvania and a clear example of what happens when we compete aggressively, work collaboratively, and make it easier for businesses to invest and grow,” said DCED Secretary Rick Siger. “This $3.5 billion investment by Lilly will create at least 850 new jobs, strengthen our life sciences sector, and bring new opportunities to families across the Lehigh Valley and beyond. We look forward to building on this partnership and bringing even more opportunities to communities across the Commonwealth.”
Lilly manufactures and distributes products through facilities in the US, Europe, and Asia and sells its products in approximately 90 countries. Established in 1876 by Colonel Eli Lilly, the company was an early mass producer of insulin and the polio vaccine. Lilly develops and manufactures various prescription medications across therapeutic areas, including cardiometabolic health, oncology, immunology and neuroscience.
The company’s multi-billion-dollar expansion project represents a huge win for growing the life sciences industry in the Lehigh Valley and builds upon the excellence in this sector that has been developing in the region over the past several years.
“Obesity is one of the biggest health challenges of our time, and the science to treat it is moving quickly,” said David A. Ricks, Lilly Chair and CEO. “Retatrutide is one of several next-generation medicines we’re developing that could help millions more people living with obesity, type 2 diabetes, or both. This $3.5 billion investment means we’ll be able to make these medicines in Pennsylvania for people here at home and around the world.”
Lilly purchased the site at 8810 Main Street in Fogelsville which will become the company’s first manufacturing facility in Pennsylvania ― representing a long-term commitment to the Commonwealth from one of the world’s leading drugmakers. The new facility will manufacture injectable medicines and devices, with a primary focus on next-generation obesity treatments.
“This is the largest economic development project in Lehigh Valley history, and it wouldn’t have happened without Lilly’s commitment to make products in the U.S. and the Shapiro Administration’s aggressive efforts for Pennsylvania to compete,” said Don Cunningham, President & CEO of Lehigh Valley Economic Development Corp. “It ushers in a new era of manufacturing in the Lehigh Valley, adding the production of medicines to the region’s rich history of producing goods and products for the U.S. and the world.”
The Commonwealth has also committed to providing a Redevelopment Assistance Capital Program (RACP) award of up to $5 million to a local community college and/or technical school to help create a workforce development training program that would serve as a talent pipeline for the company in the Lehigh Valley. Lehigh Carbon Community College has been selected as one of the institutions that will receive the RACP funding.
“This partnership is such a life-changing opportunity for our students and future generations, providing pathways to family-sustaining wages and rewarding, long-term careers,” said Dr. Ann Bieber, President of Lehigh Carbon Community College. “We are creating clear pathways to technical careers that offer both stability and the chance to contribute to life-saving medical advancements, ensuring our community’s residents and future generations directly benefit from this milestone investment.”
Investing in Pennsylvania’s Life Sciences Industry and Innovation Economy
As a national powerhouse, Pennsylvania’s life sciences industry is home to approximately 3,900 companies, employs more than 110,000 Pennsylvanians, and directly contributes $73 billion to the economy. The work by these researchers and companies over the last five years has secured more than 20,000 new life sciences patents — the sixth-highest total in the country.
Since taking office, Governor Shapiro has been laser-focused on supporting Pennsylvania’s biotech ecosystem — and he’s delivering. Life sciences companies like Lilly, Merck, Johnson & Johnson, Eurofins Lancaster Laboratories, B. Braun, and GSK have announced major expansions in Pennsylvania under the Governor’s leadership, bringing new jobs and investments in research and development into the Commonwealth.
In the 2026-27 budget, the Governor also secured $125 million to create Pennsylvania’s Innovate in PA 2.0 program to foster promising ideas and help growing companies thrive and succeed in the Commonwealth by:
- Strengthening Support for Clinical Trials – the Clinical Trial & Research Network Grant Program will invest in the Commonwealth’s clinical trial and research infrastructure to help reduce barriers and streamline these efforts.
- Investing in the Talent Companies Need – the Life Sciences Paths Grant Program will invest in talent pathways that address critical workforce gaps and help keep skilled workers in the Commonwealth and giving high-potential biotech and life sciences companies another reason to start, grow, and stay here.
- Building Economic Resilience – the Life Sciences Challenge Grant Program will support high-impact, high-potential economic development projects to advance collaboration between or-profit, non-profit, academic, and municipal partners to strengthen the life sciences ecosystem in Pennsylvania.
Pennsylvania’s Business Climate and Growing Economy Is Earning National Recognition
Since taking office, Governor Shapiro has made Pennsylvania more competitive — attracting over $43 billion in private-sector investment while creating nearly 29,000 good-paying jobs across the Commonwealth and earning national recognition.
- Pennsylvania is the only state in the Northeast with a growing economy, based on analysis done by Moody’s Analytics Chief Economist Mark Zandi.
- The Commonwealth was recently ranked the top state for business in the Northeast by CNBC in its Top States for Business in America rankings ― the highest Pennsylvania has been ranked in 15 years.
- Area Development ranked Pennsylvania among the top 20 “Best States for Business” — the only Northeastern state to make the list — and placed the Commonwealth in the top 10 for “Site Readiness Programs.”
- Site Selection Magazine named Pennsylvania one of the top business climates in the nation.
- Data from the U.S. Bureau of Labor Statistics shows that Pennsylvania ranks among the top states in the nation for five-year new business survival.
Learn more about the Shapiro Administration’s work to support Pennsylvania’s workers and businesses and spur the economy to build a stronger, more competitive economy for all Pennsylvanians.
Read more about Governor Shapiro’s 2026-27 budget, view the Governor’s remarks as prepared here, or watch the Governor’s delivered remarks here.