by WU Chao
Eli Lilly and Company will invest $200 million with Chinese drug developer Pharmaron (300759.SZ) to localize production of its oral GLP-1 drug candidate Orforglipron, expanding the U.S. drugmaker's manufacturing footprint in China as competition heats up in the fast-growing obesity drug market.
China has become a key battleground for obesity drugs as multinational pharmaceutical companies expand in one of the world's largest diabetes and obesity treatment markets.
Chinese contract development and manufacturing organization (CDMO) Pharmaron, a global supplier, said the funding will support technology upgrades and manufacturing capacity for Orforglipron, Lilly's first investigational oral small-molecule GLP-1 receptor agonist submitted for regulatory approval.
The agreement forms part of Lilly's $3 billion plan to expand manufacturing and supply chains in China over the next decade, including building localized production capacity for oral solid-dose medicines and pipeline products such as Orforglipron.
Dhaval Patel, Lilly's vice president and China general manager, said the investment would strengthen the company's supply chain in China to meet rising demand for metabolic disease treatments.
Building on its Suzhou plant, Lilly plans to expand production of incretin-based injectable medicines while adding oral solid-dose capacity in Beijing to support localized supply of innovative therapies.
China is one of the world's largest potential markets for obesity and diabetes treatments, with about 148 million people living with type 2 diabetes and more than 500 million people overweight or obese, according to official estimates.
Orforglipron, designed as an oral alternative to injectable GLP-1 therapies, is Lilly's first planned oral treatment in the class. The company's China unit submitted marketing applications to the National Medical Products Administration (NMPA) in late 2025 for the treatment of type 2 diabetes and obesity, which were accepted in January 2026. The drug has not yet been approved.
Demand for GLP-1 drugs used to treat diabetes and obesity has surged globally, with the market estimated at about $78 billion in 2025, up more than 50% year on year.
Lilly has been a major beneficiary of the boom, driven by strong sales of tirzepatide, its diabetes and obesity treatment. The company reported $65.2 billion in revenue in 2025, up 45% from a year earlier, while its market value surpassed $1 trillion. Sales of tirzepatide reached about $36.5 billion in 2025, overtaking Novo Nordisk's semaglutide franchise as Lilly and Novo Nordisk compete for dominance in the rapidly expanding GLP-1 drug market.
The deal adds to Lilly's expanding footprint in China. Over the past two years, Lilly has upgraded its Suzhou plant, set up a China medical innovation center and launched innovation incubators in Beijing and Shanghai. With the new $3 billion plan, Lilly's cumulative investment will approach $6 billion.
Other multinational drugmakers are also stepping up investment. Earlier in 2026, AstraZeneca announced plans to invest more than 100 billion yuan in China.
