Ricks has led a $50 billion pharma manufacturing plan to safeguard Lilly's lead in obesity and diabetes treatments. By Jack Hough
Two years ago, Eli Lilly faced some high-class problems. GLP-1 drugs looked to be the biggest pharmaceutical moneymaker ever, and Lilly's Zepbound auto-injectors for obesity and Mounjaro for diabetes were best-in-class (and still are). Keeping them in supply would mean thinking beyond traditional drugmaking. Safeguarding their lead was paramount. And then, what to do with all that cash? After all, investors don't like one-trick pharmas.
Lilly CEO Dave Ricks, 59, led a $50 billion manufacturing Marshall Plan, building or expanding 11 plants. Today Lilly has 22 million square feet of production space. If you're into sports, picture 382 football fields. If you're not, just know that Boeing has the largest building in the world for making wide-body jetliners, and Lilly manufactures from the equivalent of five of those.
A direct-to-consumer platform has reduced patient friction, a new obesity pill expands sales potential, and deals with insurers are increasing access. A next-generation GLP-1 in development looks better than Zepbound. Acquisitions in neuroscience, cancer, genetic medicine, and infectious diseases are spurring diversification. Even so, free cash flow is expected to more than double this year to $22 billion, and double again in three years. And, as artificial intelligence moves drug discovery from test tubes to silicon, Lilly is in prime position to profit.
Write to Jack Hough at jack.hough@barrons.com and subscribe to his Barron's Streetwise podcast.
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(END) Dow Jones Newswires
June 19, 2026 21:31 ET (01:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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