Mounjaro maker Eli Lilly charts billion-dollar India plan amid 100% US tariff on pharma

Eli Lilly's billion-dollar India investment plan includes contract manufacturing in the world's third largest pharma market and a capability centre in Hyderabad

Eli Lilly & Co., the maker of the blockbuster Mounjaro diabetes drug, plans to invest more than $1 billion for contract manufacturing in India, amid 100% US tariff on the pharma sector.

Eli Lilly, which recently launched its blockbuster Mounjaro diabetes drug in India, currently has operations in Gurugram, Bengaluru and Hyderabad. (Reuters)

The Indianapolis, US-based drugmaker will set up a new manufacturing and quality centre in Hyderabad, according to a statement on Monday. The facility will serve as a control centre for the company's contract manufacturing in the world's third largest pharmaceutical industry. Hiring for the Hyderabad office, including engineers, chemists and managers, is expected to start soon.

“We are making significant investments to increase manufacturing and medicine supply capacity around the world,” Patrik Jonsson, executive vice president and president at Lilly International, said in the statement. “This investment reaffirms our confidence in India as a hub for capability building within our global network.”

Eli Lilly, which recently started selling Mounjaro in India, did not disclose specific details of the billion-dollar investment.

US Tariff On Pharma

Eli Lilly's India investment plan comes days after US President Donald Trump announced a 100% tariff on pharma imports, specifically branded or patented drugs. These, however, are unlikely to have an impact on India's pharma industry as it primarily makes and sells generic drugs.

Trump has repeatedly threatened levies on drugs imported from overseas. Since his inauguration several major drugmakers, including Merck & Co. and AstraZeneca Plc, have announced billions of dollars of investments to expand US manufacturing operations.

Eli Lilly In India

Over the last five years, Eli Lilly has committed investments of more than $55 billion globally, with an aim to build a network of factories, the company said in the statement.

“This initiative reflects Eli Lilly’s intent to leverage India’s highly skilled talent pool to support its global manufacturing growth and deliver medicines to patients worldwide,” according to the statement.

Eli Lilly currently operates a commercial site at Gurugram with specialised operations at Bengaluru and Hyderabad.