Pharmaceutical company to invest $3.5 billion in Pa.

Allentown, Pa. — A global pharmaceutical company plans to invest billions in Pennsylvania to build a manufacturing facility.

On Friday, Governor Josh Shapiro and Pennsylvania Department of Community & Economic Development (DCED) Secretary Rick Siger announced the Commonwealth has secured a $3.5 billion private-sector investment from global pharmaceutical firm Eli Lilly and Company to build a new, state-of-the-art pharmaceutical facility in Lehigh County. 

Lilly’s investment is the largest by a life sciences company in Commonwealth history.

Supported by $100 million in Commonwealth investment, this expansion project will create at least 850 new jobs over the next five years and continue growing Pennsylvania’s robust pharmaceutical and life sciences industries.

Lilly is purchasing a site in Fogelsville. This will be the first Lilly manufacturing facility in Pennsylvania and represents a long-term commitment to the Commonwealth from one of the world’s leading drugmakers.

'Life-changing deals'

“When we announced our Economic Development Strategy here in the Lehigh Valley two years ago, we set out to win historic, life-changing deals like the one we’re announcing with Lilly today,” Shapiro said. “Before I took office, Pennsylvania wasn’t even in the conversation for major investments like this, but thanks to our work to cut red tape, invest in site development, and expand our workforce, our Commonwealth is now competing — and winning — on a national scale. Lilly’s commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry.”

Lilly received a funding proposal from 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.

The state 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.

“Lilly’s investment is an important win for the Lehigh Valley and the entire Commonwealth, creating at least 850 new jobs and further solidifying our position as a leader in economic development and life science innovation,” said Secretary Siger. “This announcement also further proves that our Economic Development Strategy is working to attract historic, new investments to Pennsylvania. We will keep competing  for major projects like this one that will continue to strengthen our life sciences industry, create good-paying jobs, and fuel economic growth across the Commonwealth.”

Founded in 1876 

Lilly manufactures and distributes products through facilities in the United States, including Puerto Rico, and in Europe and Asia. Their products are sold in approximately 95 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.

“Our mission starts with patients and delivering the medicines they need. To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines. We’re creating high-quality jobs and collaborating across the region — with suppliers, educators, and workforce-development partners — to make critical medicines in the U.S.,” said David A. Ricks, Lilly chair and CEO. “That’s our commitment—to patients, to our new Pennsylvania home and to our country.”

Lilly is also receiving assistance through Pennsylvania’s Office of Transformation and Opportunity (OTO) on the project via the PA Permit Fast Track Program.

In November 2024, the Governor signed Executive Order 2024-04, creating the PA Permit Fast Track Program 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. Through OTO, the program helps develop, manage, and coordinate permitting for complex and impactful economic development and infrastructure projects across government agencies and private partners in order to get project sponsors answers in a timely manner.

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Deal in the works for years 

Lilly’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.

“The Lehigh Valley is honored to welcome Lilly to the region,” said Don Cunningham, President & CEO, Lehigh Valley Economic Development Corporation. “It took numerous key partners working behind the scenes in a multi-year process to attract Lilly and this multi-billion-dollar investment, but none more critical than Governor Shapiro and his excellent team. We're grateful for his leadership and partnership and the confidence and investment of Lilly.”

Today’s announcement is another example of how the Shapiro administration is focused on supporting Pennsylvania’s biotech ecosystem. Life sciences companies like Eurofins Lancaster Laboratories, Apozeal Pharmaceuticals, B. Braun, and GSK have announced expansions in Pennsylvania, bringing new jobs and R&D investments into the Commonwealth.

This project was coordinated by Shapiro’s BusinessPA team, an experienced group of economic development professionals dedicated to helping businesses succeed in Pennsylvania through tailored guidance, strategic partnerships, and financial resources. Whether based in the Commonwealth, another state, or across the globe, the team moves at the speed of business to set up companies for long-term growth and success here in Pennsylvania.

Pennsylvania’s Business Climate and Growing Economy is Getting National Recognition

• Pennsylvania is the only state in the Northeast with a growing economy, according to a report from Axios based on analysis done by Moody’s Analytics Chief Economist Mark Zandi. This latest recognition builds on growing evidence that Pennsylvania’s economy is strong, competitive, and on the rise.

• Recently, "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" has named Pennsylvania one of the top business climates in the nation. The Commonwealth is 11th in the 2025 Business Climate Rankings, up seven spots from last year.

• New 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, underscoring the strength and resilience of the Commonwealth’s economy under Governor Shapiro’s leadership.

Unleashing Pennsylvania’s Economic Potential, Streamlining Permitting to Drive Economic Growth, and Supporting Pennsylvania’s Small Businesses

• Since taking office,
• Shapiro has made Pennsylvania more competitive — cutting red tape, streamlining permitting and licensing, and attracting over $39  billion in private-sector investment that has created more than 21,500 good-paying jobs across the Commonwealth. That includes the largest private-sector investment in Pennsylvania history — Amazon’s initial $20 billion investment to build new AI and cloud computing campuses, creating thousands of high-tech and construction jobs.

• Governor Shapiro has made economic competitiveness and government efficiency top priorities, launching Pennsylvania’s first comprehensive economic development strategy in nearly two decades, cutting permit backlogs — including eliminating the Department of Environmental Protection’s backlog of 2,400 permits — and investing $550 million to prepare more sites for business expansion, strengthen main streets, and support small businesses and entrepreneurs.

• The Governor’s 2025-26 budget continues to make historic progress on permitting reform, funds key staff at agencies responsible for processing permits, licenses, and certifications, and invests in Pennsylvania’s main streets.

Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy, and discover how the Administration is creating economic opportunity to build a stronger, more competitive economy for all Pennsylvanians.