Eli Lilly plans $3 billion China weight loss drug expansion

Eli Lilly and Company has announced a $3 billion investment in China over the next decade to expand production capacity for its experimental weight loss and diabetes medication. The United States-based pharmaceutical company confirmed on Wednesday that the investment will support the development of orforglipron, an oral treatment for which a marketing application was submitted to Chinese regulators at the end of 2025.

Orforglipron is a once-daily oral non-peptide GLP-1 agonist. In late-stage clinical trials, the drug helped overweight adults without diabetes lose 12.4% of their body weight over 72 weeks at the highest dose. Research also indicated the pill's effectiveness in maintaining weight loss for patients switching from injectable GLP-1 therapies, such as Novo Nordisk A/S's Wegovy or Lilly’s own Zepbound.

The company aims to establish a localized manufacturing and supply system for oral solid dosage forms. This expansion follows similar recent investment moves by other Western healthcare firms, including Haleon plc and AstraZeneca PLC. These strategic developments come ahead of a planned summit between the American and Chinese presidents later this month.

While some firms are increasing their presence, others have chosen to exit. Bristol Myers Squibb signed an agreement in September to sell its 60% stake in a Chinese pharmaceutical joint venture, which included a manufacturing facility in Shanghai.