Wednesday, February 26, 2025

Lily to Invest $27B in New US Plants to Avoid Tariffs (Connecting the Dots: Eli Lilly and Company, Sidley Austin LLP, Obamacare, Commercial Club of Chicago, The Pharmaceutical Research and Manufacturers of America & Soros Funding, All Networking)

Lily to Invest $27B in New US Plants to Avoid Tariffs (Connecting the Dots: Eli Lilly and Company, Sidley Austin LLP, Obamacare, Commercial Club of Chicago, The Pharmaceutical Research and Manufacturers of America & Soros Funding, All Networking)  

Newsmax.com

Wednesday, 26 February 2025 11:25 AM EST

(AP)

https://www.newsmax.com/finance/streettalk/eli-lily-u-s-plants/2025/02/26/id/1200563/

Eli Lilly plans to spend at least $27 billion to build four new manufacturing plants in the U.S., the drugmaker said at a Washington press conference Wednesday, as it grapples with the threat of drug import duties from the Trump administration.

The new plants will be built over the next five years, and are expected to create more than 3,000 jobs for skilled workers like engineers and scientists as well as 10,000 construction jobs, the company said.

Lilly said it will announce the locations of the sites later this year.

The announcement comes less than a week after U.S. President Donald Trump met with chief executives from major drugmakers, including Lilly CEO David Ricks, to discuss industry concerns such as tariffs on drug imports.

U.S. Secretary of Commerce Howard Lutnick said at the press conference that Lilly was doing "exactly what the President was hoping would happen."

Ricks said he hoped the government would exempt medical supplies from potential tariffs and continue to pursue further tax reforms.

The CEO said in a statement earlier on Wednesday that tax-cutting legislation introduced in Trump's first term had been foundational to the drugmaker's domestic manufacturing investments.

Trump, who campaigned on a promise to boost domestic manufacturing, has been piling pressure on drugmakers since taking office to move medicine production to the U.S. He suggested last week that he could impose a 25% duty on pharmaceutical and other imports.

Other sectors are also making manufacturing announcements. Earlier this week, Apple said it would spend $500 billion in the U.S. over the next four years, but analysts said some of that included current commitments.

The U.S. and its major trading partners have agreed to reciprocal tariff elimination for pharmaceutical products and chemicals used in drug production for the past 30 years, according to the U.S. Trade Representative's office.

Despite telling Republicans in a White House meeting earlier this month that he was considering such an exemption, Reuters reported, Trump has yet to rule them out.

Ricks also said at the conference that he looked forward to working with the new administration to finalize a rule introduced by President Joe Biden last year that would require the Medicare and Medicaid government health programs to cover weight-loss drugs like Lilly's Zepbound.

Responding to a question about federal employee firings at the U.S. Food and Drug Administration, the CEO said Lilly's fees go toward funding staff at the agency and the company would be concerned if those funds "were directed towards something else."

Lilly, which has become the world's most valuable healthcare company worth more than $855 billion, said it has already committed $23 billion to boosting its U.S. manufacturing footprint since 2020. Its Wednesday announcement brings that total to more than $50 billion.

Three of Lilly's new plants will be used to manufacture pharmaceutical raw ingredients, while the fourth will make injectable medicines, the drugmaker said.

Connecting the Dots:

Sidley Austin LLP was the lobby firm for the Eli Lilly and Company, Pfizer Inc. and is the lobby firm for the Pharmaceutical Research and Manufacturers of America.

Barack Obama was an intern at Sidley Austin LLP and Obamacare was his signature policy initiative.

Michelle Obama was a lawyer at Sidley Austin LLP.

R. Eden Martin is counsel at Sidley Austin LLP, and the president of the Commercial Club of Chicago.

Newton N. Minow is a senior counsel at Sidley Austin LLP, and a member of the Commercial Club of Chicago.

W. James McNerney Jr. is a member of the Commercial Club of Chicago, and the chairman & president & CEO for the Boeing Company.

Boeing Company is a contractor for the National Security Agency (NSA).

Booz Allen Hamilton is a contractor for the National Security Agency (NSA).

Barbara G. Fast was a VP at the Boeing Company, and a VP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Obamacare is Barack Obama’s signature policy initiative.

Donna S. Morea was the EVP for the CGI Group Inc., and a trustee at the Committee for Economic Development.

Foundation to Promote Open Society was a funder for the Committee for Economic Development.

George Soros was the chairman for the Foundation to Promote Open Society.

Frederick W. Telling is a trustee at the Committee for Economic Development, and was the VP for Pfizer Inc.

Ellen R. Marram is a trustee at the Committee for Economic Development and a director at the Eli Lilly and Company.

Jeffrey N. Simmons is the SVP for the Eli Lilly and Company, and a director at Chiquita Brands International, Inc.

Cyrus F. Freidheim Jr. was the chairman & CEO for Chiquita Brands International, Inc., a managing director at Booz Allen Hamilton, is a member of the Commercial Club of Chicago and an honorary trustee at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank), a senior counsel for Akin, Gump, Strauss, Hauer & Feld, LLP and Valerie B. Jarrett’s great uncle. 

Akin, Gump, Strauss, Hauer & Feld, LLP is the lobby firm for the Pharmaceutical Research and Manufacturers of America.

Valerie B. Jarrett is Vernon E. Jordan Jr. great niece, a member of the Commercial Club of Chicago and was the senior adviser for the Barack Obama administration.
Robert S. Osborne
 is a member of the Commercial Club of Chicago and the EVP & general counsel for Booz Allen Hamilton.

Booz Allen Hamilton is a contractor for the National Security Agency (NSA).

Edward Snowden was an employee at Booz Allen Hamilton, and leaked information about National Security Agency (NSA).

Keith B. Alexander is the director for the National Security Agency (NSA), and a friend of Barbara G. Fast.

Boeing Company is a contractor for the National Security Agency (NSA).

Barbara G. Fast is a friend of Keith B. Alexander, was a VP at the Boeing Company and a VP for the CGI Group Inc.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Obamacare is Barack Obama’s signature policy initiative.

Donna S. Morea was the EVP for the CGI Group Inc. and a trustee at the Committee for Economic Development.

Frederick W. Telling is a trustee at the Committee for Economic Development, and was the VP for Pfizer Inc.

Ellen R. Marram is a trustee at the Committee for Economic Development and a director at the Eli Lilly and Company.

Resources: Past Research

Cost of Generic Drugs Soaring Due to Increased Demand from Obamacare (Past Research on the Eli Lilly and Company)

Saturday, February 1, 2014

https://thesteadydrip.blogspot.com/2014/02/cost-of-generic-drugs-soaring-due-to.html

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