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The Commonwealth is investing $100 million to support the manufacturing site’s project
in the Lehigh Valley – the largest life sciences investment in PA history.
Pennsylvania, which competed aggressively against other states to win this Lilly project,
is the only Northeast state with a growing economy and is a top destination for life
sciences companies. Since taking office, the Shapiro Administration has attracted over
$39 billion in private sector investment, creating more than 21,500 good-paying jobs statewide.
Allentown, PA – Today, 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 manufacturing 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.
“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,” said Governor Josh Shapiro. “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.”
Lilly manufactures and distributes products through facilities in the United States (U.S.),
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.
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 Governor 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, Governor 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.
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