Company will invest more than $470 million to build new manufacturing facility.
RALEIGH, N.C. /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY), a global healthcare and biopharmaceutical company, will invest over $470 million and create more than 460 new jobs in Durham, Governor Roy Cooper announced today. The project will bring a new state-of-the-art pharmaceutical manufacturing facility to North Carolina's Research Triangle Park.
"Life science companies like Lilly continue to choose North Carolina," said Governor Cooper. "Our exceptional workforce draws global companies as we continue to grow North Carolina into a worldwide hub for the biotechnology industry."
Lilly, with headquarters in Indianapolis, Indiana, has a long heritage in discovering and making medicines. Established in 1876, today Lilly is attacking some of the world's most serious and debilitating chronic health issues -- diabetes, cancer, autoimmune conditions, chronic pain, and Alzheimer's disease, all among the world's leading causes of death or disability.
This new manufacturing site will be a state-of-the-art facility that produces parenteral (or injectable) products and delivery devices. To operate the site, Lilly will create more than 400 jobs in highly skilled positions such as scientists, engineers, quality professionals and manufacturing operations. Lilly currently has seven manufacturing sites located in the United States in Indiana, New Jersey and Puerto Rico.
"This next-generation manufacturing facility will allow us to expand our capacity to make the Lilly medicines that are helping people with serious illnesses today, and help us prepare for new medicines coming from our robust pipeline in the future," said David A. Ricks, chairman and chief executive officer of Lilly. "In the past two years, we have invested billions of capital in new U.S.-based manufacturing because the 2017 tax reform rebalanced the playing field in favor of the American worker. We're excited to be bringing more of these high-skill, high-wage advanced manufacturing jobs to North Carolina."
"North Carolina is one of the nation's leading centers for innovation in the life sciences," said North Carolina Commerce Secretary Anthony M. Copeland. "We welcome Lilly to the state's roster of biomanufacturers."
The North Carolina Department of Commerce led the state's support for the company during its site evaluation and decision-making process.
Although wages will vary depending on position, the average salary for all the new positions will exceed $72,000, which is greater than the current average wage in Durham County of $71,756.
Lilly's project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state's Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state's economy by $4.1 billion. Using a formula that takes into account the new tax revenues generated by the 462 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $8,689,500, spread over 12 years. The company's JDIG agreement lists its investment target as $474 million. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant's reimbursement payments to a given company.
Because Lilly chose a site in Durham County, classified by the state's economic tier system as Tier 3, the company's JDIG agreement also calls for moving as much as $2,896,500 into the state's Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Durham, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. More information on the state's economic tier designations is available here.
"This decision will only grow the reputation of Durham and the Research Triangle Park as a leading destination for life science companies," said N.C. Representative Zack Hawkins. "Everyone in our area stands ready to help Lilly succeed in North Carolina."
Partnering with N.C. Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Biotechnology Center, Durham County, the Greater Durham Chamber of Commerce and Duke Energy.
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about planned capital investments in a new manufacturing site and reflects Lilly's current belief. There are substantial risks and uncertainties in the manufacturing process, development, and commercialization of pharmaceutical products which could impact the overall commercial success of our products. For further discussion of these and other risks and uncertainties, see Lilly's most recent Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.
CONTACT:
Tamara Hull; hullta@lilly.com; 317-614-5132 (Lilly)
Scott MacGregor; jsmacgregor@lilly.com; 317-440-4699 (Lilly)
David Rhoades; drhoades@nccommerce.com; 919-814-4611 (State of North Carolina)
