Eli Lilly, the American pharmaceutical giant, has made two significant announcements that could substantially impact its market position and future growth trajectory. The company revealed a major European manufacturing investment while simultaneously negotiating a potential landmark agreement with the White House that might expand access to its popular weight-loss medications for millions of Americans.
Manufacturing Expansion in the Netherlands
The company disclosed plans on Monday to establish a state-of-the-art production facility in Katwijk, Netherlands, with a substantial investment commitment of $3 billion. This new operation will be situated within the Leiden Bio Science Park and will specialize in manufacturing oral medications. The facility’s primary focus will be producing Orforglipron, an promising GLP-1 receptor agonist in tablet form that is scheduled for global regulatory submission later this year.
This European investment represents just one component of Eli Lilly’s unprecedented expansion strategy. Since 2020, the pharmaceutical leader has channeled more than $50 billion toward enhancing its manufacturing capabilities worldwide. This aggressive capital allocation directly addresses the surging global demand for Mounjaro and Zepbound, the company’s diabetes and obesity treatments that propelled third-quarter 2025 revenue upward by an impressive 54 percent.
Potential Medicare Agreement Could Transform Market Access
The manufacturing announcement was followed just one day later by reports of advanced negotiations between Eli Lilly and the Biden administration. According to insiders familiar with the discussions, the proposed arrangement would establish a monthly price of $149 for the lowest dosage of the company’s weight management medications. In exchange, these treatments would gain coverage under the Medicare program, potentially revolutionizing patient access.
Should investors sell immediately? Or is it worth buying Eli Lilly?
The pharmaceutical industry has faced mounting political pressure regarding medication pricing, with critics consistently highlighting how life-changing therapies remain financially out of reach for many patients. Medicare coverage for these weight-loss drugs would dramatically alter this landscape, opening access to tens of millions of older Americans who currently cannot afford these treatments through traditional payment channels.
Market Expectations and Future Catalysts
Despite the promising nature of these developments, market analysts note that investor expectations already appear substantially priced into Eli Lilly’s current valuation. The company’s shares advanced significantly following both announcements, reaching levels that suggest limited tolerance for potential disappointments. The current stock price reflects substantial confidence in the company’s ability to maintain its robust growth trajectory.
Two critical near-term catalysts will likely determine Eli Lilly’s continued market performance: official confirmation of the proposed Medicare pricing agreement and regulatory approval for Orforglipron, expected by year-end. Successful execution on both fronts would significantly strengthen the company’s dominance within the metabolic therapy market. However, should either milestone encounter unexpected obstacles, the recent positive momentum could face considerable pressure.
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