Merck, Lilly Commit Large Investments to US R&D and Manufacturing Expansion
Merck Animal Health will invest $895 million to expand vaccine manufacturing and R&D in Kansas, while Lilly is committing $250 million to pharmaceutical innovation and workforce development through its extended partnership with Purdue University.
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Merck Animal Health and Eli Lilly and Company have individually announced major US investments totaling more than $1 billion combined, reinforcing their commitments to domestic innovation in biomanufacturing, R&D, and workforce development.
Merck Animal Health
Merck Animal Health, a division of Merck & Co., revealed plans to invest $895 million to expand its manufacturing and research capabilities in De Soto, Kansas. This includes $860 million dedicated to increasing large molecule vaccine and biologic production at its existing site, along with $35 million to enhance R&D efforts focused on parasiticides and novel therapeutics.
Construction on the 200,000-square-foot facility is set to begin immediately and is expected to generate more than 200 full-time jobs. The expansion will include new filling and freeze-drying capacity for the location, positioning it to become a key site for Merck Animal Health’s global manufacturing operations.
Since the 2017 Tax Cuts and Jobs Act, Merck has invested more than $12 billion into strengthening its US-based manufacturing and R&D infrastructure. The company plans to invest an additional $9 billion in domestic operations by 2028.1
“Our De Soto, Kansas manufacturing facility is strategically located in the heart of the Animal Health Corridor,” said Richard DeLuca, president, Merck Animal Health, in a press release. “This region is renowned for its concentration of animal health companies, fostering an unparalleled ecosystem for innovation, collaboration and industry leadership. This investment in our site is designed to increase Merck Animal Health’s ability to meet the growing customer demand for its portfolio of animal biologics products and ensure the company remains at the forefront of innovation in the animal health sector. This initiative also reflects our dedication to advancing animal health and our on-going investment in the communities where we operate.”
Eli Lilly and Company
Lilly announced an expansion of its longstanding partnership with Purdue University, with plans to invest up to $250 million over eight years through the Lilly-Purdue 360 Initiative. The collaboration aims to accelerate pharmaceutical innovation across research, development, and manufacturing pipelines.2
"As potentially the largest single university-industry research agreement in American history, Lilly and Purdue are blazing a new trail to the endless frontier," said Mung Chiang, president, Purdue University, in a press release. "As for our state, when its largest company and the largest university expand collaboration at a scale never seen before, especially in the backdrop of Lilly's manufacturing facility in LEAP, today marks a monumental watershed in the generation of jobs, workforce, and innovation along America's Hard-Tech Corridor. We thank Lilly for its pioneering impact on health and medicine in our society and for what is now the largest single research funding, from public or private capital, in Purdue's history."
With the new agreement extending through 2032, Lilly and Purdue will focus on several strategic priorities: integrating AI and data analytics to enhance drug discovery and enable personalized treatments; using technology to accelerate the transition of therapies from clinical trials to scalable manufacturing; adopting robotics and advanced digital tools to improve compliance, efficiency, and sustainability in production; and advancing workforce development programs to support talent needs across Indiana’s life sciences sector.2
"Accelerating the delivery of life-changing medicines demands a highly skilled workforce and continuous innovation across discovery, process development and manufacturing," said David A. Ricks, chair, CEO, Lilly, in a press release. "Through this expanded collaboration with Purdue, we look forward to combining our strengths in advanced technologies and cutting-edge science to pioneer new methods of delivering next-generation medicines to advance human health."
References
1. Merck Animal Health and State of Kansas Announce $895 Million Investment in Manufacturing and Research & Development Facilities in De Soto. Merck. May 8, 2025. Accessed May 9, 2025. https://www.merck.com/news/merck-animal-health-and-state-of-kansas-announce-895-million-investment-in-manufacturing-and-research-development-facilities-in-de-soto/
2. Lilly plans to expand Purdue University collaboration with up to a $250 million investment to accelerate pharmaceutical innovation. Lilly. May 9, 2025. Accessed May 9, 2025. https://investor.lilly.com/news-releases/news-release-details/lilly-plans-expand-purdue-university-collaboration-250-million
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