How Eli Lilly's GLP-1 Boom Reshaped the Indianapolis Economy
Lilly's Indiana operations generate nearly $20.7 billion in state GDP — 3.6% of Indiana's total — and support an estimated 46,600 jobs, per an IU Kelley School study, with more than $21 billion in new Indiana investment since 2020.
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Eli Lilly’s rise — powered by Zepbound for obesity and Mounjaro for type 2 diabetes — has made one Indianapolis company a pillar of the Indiana economy. A May 2026 study by the Indiana Business Research Center (IBRC) at Indiana University’s Kelley School of Business found that Lilly’s operations generate nearly $20.7 billion in Indiana GDP — 3.6% of the state’s total — and support an estimated 46,600 Indiana jobs, counting both its own 14,700 workers and ripple-effect employment [2]. On top of that, Lilly has committed more than $21 billion to expand its Indiana manufacturing footprint since 2020, most of it at a new campus in Lebanon, Indiana [3][4].
The engine behind the company’s growth is tirzepatide, the active ingredient in Zepbound and Mounjaro. Combined sales of the two drugs reached nearly $19 billion in the first nine months of 2025, passing Merck’s Keytruda as the world’s best-selling drug [1]. On Friday, November 21, 2025, Lilly briefly became the first drugmaker to reach $1 trillion in market value — a company whose shares traded under $100 as recently as 2018 and now trade at more than 10 times that [1]. Lilly employs 47,000 people worldwide, and Indiana is home to its headquarters operations and 28% of its global workforce [1][2]. The company, founded in Indiana 150 years ago, marks its sesquicentennial in 2026 [2][4].
How big is Lilly’s footprint in Indiana’s economy?
The IBRC study, “Measuring Lilly’s Economic and Civic Contributions in Indiana,” used input-output (IMPLAN) analysis to trace Lilly-related spending in the state [2]. Its findings on current operations:
- Lilly directly employs 14,700 people in Indiana (full- and part-time), and its supply-chain purchases plus its workers’ household spending support another 31,900 ripple-effect jobs, for a total employment impact of about 46,600 jobs [2].
- Lilly’s employment multiplier is 3.17, meaning every direct Lilly job supports another 2.17 jobs with other Indiana employers — or every 100 Lilly jobs create another 217 jobs elsewhere in the state [2].
- The 46,600 supported jobs generate more than $6.6 billion in total compensation, an average of $142,130 per job — more than 70% above the average compensation for all jobs in Indiana [2].
- Lilly’s direct operations contribute nearly $15.6 billion to Indiana GDP, or 2.7% of state output. Adding ripple effects and capital spending on existing facilities, the total impact is nearly $20.7 billion, or 3.6% of Indiana GDP [2].
- Lilly’s average annual capital spending on its existing Indiana facilities supports another 920 jobs [2].
Lilly itself estimates that every dollar it spends locally generates up to four dollars in additional local economic activity [3].
How many people does Eli Lilly employ in Indiana?
Lilly directly employs 14,700 people in Indiana on a full- and part-time basis, according to the IBRC study [2]. The Indianapolis Business Journal’s 2025 ranking of largest Indiana employers, which counts full-time equivalents, lists Lilly at 13,206 — 10th in the state [2].
Larger Indiana employers include federal and state government, three large nonprofit hospital systems and two multi-campus public universities. The only for-profit companies employing more Hoosiers than Lilly are Walmart (44,751) and Kroger (19,130) [2].
| Indiana employer (2025) | Jobs (FTE) |
|---|---|
| Walmart | 44,751 |
| Kroger | 19,130 |
| Lilly | 13,206 |
| FedEx | 11,200 |
| Thor Industries | 9,880 |
Lilly is the largest for-profit employer headquartered in Indiana, and it operates in what economists call a traded industry — its Indiana-made products are exported across the country and the world, bringing outside money into the state [2].
What is the LEAP district in Lebanon, Indiana?
The LEAP Research and Innovation District is a manufacturing and R&D campus Lilly is building in Lebanon, Boone County, Indiana [2][5]. Lilly is currently engaged in an $18 billion capital investment there to build three facilities, according to the IBRC’s Lilly economic impact report [2]. The IBRC’s 2026 Indianapolis forecast, a separate publication, cites Lilly’s Boone County footprint as a $13 billion investment [5]. The two figures differ; each comes from a different IBRC publication.
The three planned Lebanon sites are Lilly Lebanon Advanced Therapies, Lilly Lebanon API, and the Lilly Medicine Foundry [3]. On May 6, 2026, Lilly announced an additional $4.5 billion across two of those sites — Advanced Therapies and API — bringing its total Indiana capital expansion commitments since 2020 to more than $21 billion [3][4].
Lilly Lebanon Advanced Therapies opened on May 6, 2026, as the company’s first dedicated genetic medicine manufacturing facility [3][4]. CEO David Ricks has said the Lebanon API site will open in 2027 and be “the largest API production site in U.S. history” [3].
The IBRC study projects the construction phase — five years, completed by the end of 2027 — will support an estimated 9,470 Indiana jobs per year over the project’s life, with a peak of about 18,630 supported jobs in 2026, and will add an average of nearly $1.5 billion per year to Indiana GDP during the build [2]. Once operational, Lilly plans to employ 1,600 workers at the LEAP campus, with a total employment impact of an estimated 4,880 jobs including ripple effects [2]. By 2030, with LEAP fully running, the IBRC projects Lilly’s total Indiana employment footprint would climb to an estimated 52,400 jobs, with a total GDP impact of nearly $22.5 billion in 2026 dollars [2]. These are projections, not measured outcomes.
What drugs will be made in Lebanon, Indiana?
Lilly has announced plans to make Zepbound and Mounjaro at its Lebanon API site, along with Foundayo (orforglipron), its once-daily oral GLP-1 pill for weight loss, and retatrutide, an investigational triple hormone receptor agonist in late-stage development for obesity and cardiometabolic disease [3]. Retatrutide is investigational and legally available only to participants in Lilly’s clinical trials [3].
How much has Lilly invested in Indiana and the U.S. since 2020?
Lilly’s Indiana capital expansion commitments since 2020 total more than $21 billion [3][4]. Nationally, its U.S. capital expansion commitments since 2020 total more than $50 billion [2][3][9].
On February 26, 2025, Lilly announced plans to build four new U.S. manufacturing sites, an expansion the company called the largest pharmaceutical manufacturing investment in U.S. history [9]. Three of the four sites will focus on active pharmaceutical ingredients, and the fourth will extend Lilly’s parenteral (injectables) manufacturing network [9]. Lilly expects those four sites to create more than 3,000 permanent skilled jobs and nearly 10,000 construction jobs — a headline 13,000 high-wage manufacturing and construction jobs [9]. Its prior 2020–2024 U.S. commitments totaled $23 billion and included new sites in Research Triangle Park and Concord, North Carolina, and at the LEAP district in Lebanon, Indiana [9]. Lilly plans to break ground on several of the newly announced U.S. sites in 2026 [3].
What has the boom done to the Indianapolis job market?
The data show life sciences employment growing much faster than everything else in the Indianapolis metro, though the numbers alone don’t prove GLP-1 demand caused the growth.
Between May 2023 and May 2024, jobs in life, physical and social science occupations grew 17.1% in the metro, and architecture and engineering occupations grew 9.3% [5]. Biomedical engineers rose from 220 to 500 (+127%), microbiologists from 100 to 150 (+50%), biological technicians from 120 to 170 (+42%), and medical scientists from 900 to 1,010 (+12%) [5].
Between August 2024 and August 2025, chemical manufacturing — which is dominated by pharmaceutical production — grew 6.0%, and professional, scientific and technical services grew 4.8% [5]. Total employment grew 1.1% in metro Indianapolis and 0.4% in Indiana, versus 1.2% nationally [5].
| Indianapolis metro sector | Growth, Aug 2024–Aug 2025 |
|---|---|
| Chemical manufacturing (pharma-dominated) | +6.0% |
| Professional, scientific and technical services | +4.8% |
| Nondurable goods manufacturing (pharma-driven) | +4.4% |
| Durable goods manufacturing | -1.2% |
| Information industries | -5.2% |
| Leisure and hospitality | -1.8% |
Not every sector shared in the growth. Nondurable goods manufacturing rose 4.4% on pharmaceutical expansion, but durable goods fell 1.2%, with transportation equipment and motor vehicle parts each down 2.1% [5]. Information-industry employment fell 5.2%, and computer and mathematical occupations fell 2.5% [5].
The broader metro numbers are strong: real GDP grew 12.5% between 2019 and 2023 versus 9.7% nationally, and total wages grew 7.6% from 2024 Q1 to 2025 Q1 versus 4.8% nationally [5]. Unemployment in Indianapolis fell from 4.0% to 3.3% between August 2024 and August 2025 while the U.S. rate rose from 4.2% to 4.3% [5]. For 2026, the IBRC’s Indianapolis forecast projects metro real GDP growth of 1.5% to 2.0%, ahead of Indiana’s 1.0% and roughly on par with the nation’s 1.8%, with unemployment expected to rise to just over 4.0% [5].
What else is being built around Indianapolis?
Lilly’s LEAP construction is part of a larger regional pipeline of projects the IBRC’s Indianapolis forecast says are strengthening the area’s momentum [5]:
| Project | Investment |
|---|---|
| IU Health campus | $4.3 billion |
| Signia by Hilton hotel and convention expansion | $780 million |
| Circle Centre Mall conversion to Traction Yards | $600 million |
| Old Indianapolis City Hall redevelopment | $249 million |
| City Market redevelopment | $227 million |
| Elanco headquarters and One Health District | $200 million |
| Purdue Academic Success Building | $187 million |
| IU Launch Accelerator for Biosciences | $138 million |
| Westfield Park and Poplar project | $123 million |
| Heartland BioWorks headquarters at 16 Tech | $24 million |
The list also includes a planned agricultural and life sciences park on the I-69 corridor in Bargersville [5].
How does Lilly’s stock price reach Indiana nonprofits?
Through the Lilly Endowment, a private foundation that operates independently of the drugmaker but is Lilly’s largest shareholder [6][7]. The Endowment holds 92.5 million LLY shares, according to its latest SEC filing, and its assets reached roughly $102 billion as of November 25, 2025, after Lilly crossed $1 trillion in market value [6][7]. At the end of 2024, it was already the largest foundation in the United States with $79.9 billion in assets, ahead of the Gates Foundation’s $77.2 billion [6][7].
The Endowment directs its funding toward religion, education and community development, with a particular focus on Indiana [6][7]. In 2025 it announced GIFT IX, the ninth phase of its Giving Indiana Funds for Tomorrow community foundation initiative, with up to $271.5 million allocated [8]. GIFT IX Community Support Grants totaling $135.25 million were awarded in 2025, ranging from $500,000 to $15 million, and Matching Grants totaling $124.5 million were awarded in 2026, ranging from $250,000 to $13 million based on county population; that application window has closed [8]. Eligibility is limited to Indiana community foundations that satisfactorily participated in a prior GIFT phase or received special authorization [8].
What is Lilly doing for workforce training and the community?
Lilly has committed $57.5 million to Ivy Tech Community College and Purdue University for its Lilly Scholars programs, which include full scholarships for pharmaceutical manufacturing-related study [2]. The goal is up to 1,000 Lilly Scholars at Ivy Tech over five years and 75 to 100 per year at Purdue over ten years [2].
In 2025, 7,270 Lilly Indiana employees participated in company-organized service events, contributing 29,570 volunteer hours with an estimated value of nearly $943,000 [2].
Could the boom reverse if GLP-1 demand slows?
The concentration cuts both ways. Lilly accounts for roughly 72% of Indiana’s pharmaceutical manufacturing employment and about 70% of the state’s pharmaceutical manufacturing GDP [2][3]. Pharmaceutical manufacturing made up 3.9% of Indiana’s total GDP in 2024 — more than twice the share in any other state, compared with 0.6% in California, 1.8% in Illinois and 1.9% in New Jersey [2]. Indiana ranked second among states in pharmaceutical manufacturing employment in 2024 (19,735 jobs) and third in pharmaceutical manufacturing GDP ($20,116.2 million) [2].
The IBRC’s 2026 Indianapolis forecast identifies headwinds that could slow pharmaceutical growth: tariff-induced export reductions, government-mandated price discounts, and drug approval delays from a smaller-staffed FDA [5]. Slowdowns in logistics and durable goods manufacturing also cap metro growth [5]. And Lilly’s national buildout — four new U.S. sites announced in February 2025 — means Indiana is no longer the only place the company manufactures at scale [9].
How is Indiana responding?
Governor Mike Braun has announced a $1 billion agriculture and life sciences investment with a goal of creating 100,000 high-wage jobs over 10 years [4]. In May 2026, Corteva chose Indiana for the global headquarters of its new crop protection company, beating multiple other states, and Merrell Bros. announced a $16.5 million, 40,000-square-foot expansion in Kokomo creating 35 high-wage jobs by the end of 2028 [4].
Braun said that with the Lebanon investment, “Indiana is reinforcing its position as a prime destination for life sciences and advanced manufacturing, spanning innovation, production and global distribution” [3]. His administration created the Indiana Office of Commerce, led by Secretary of Commerce David J. Adams [4].
Sources
- BioPharma Dive. Eli Lilly becomes first drugmaker to hit $1 trillion in market value.
- Indiana Business Research Center, Kelley School of Business, Indiana University. Eli Lilly and Company’s Impact: Measuring Lilly’s Economic and Civic Contributions in Indiana. May 2026.
- Eli Lilly and Company. Lilly commits additional $4.5 billion across Indiana manufacturing sites, opens first dedicated genetic medicine facility. May 6, 2026.
- Indiana Economic Development Corporation. Indiana is Open for Business: May’s Jobs and Wages Wins. May 29, 2026.
- Indiana Business Research Center, Kelley School of Business, Indiana University. Indianapolis forecast 2026.
- Investing.com. Eli Lilly endowment tops $100 billion. November 25, 2025.
- TipRanks. Eli Lilly’s (LLY) Endowment Becomes the Largest in the U.S. with $100 Billion of Assets.
- Lilly Endowment Inc. Giving Indiana Funds for Tomorrow (GIFT) IX.
- Eli Lilly and Company. Lilly plans to more than double U.S. manufacturing investment since 2020 exceeding $50 billion. February 26, 2025.
- Office of the Texas Governor. Governor Abbott Announces New Eli Lilly Manufacturing Investment In Harris County. September 23, 2025.
- Office of the Governor of Alabama. Governor Ivey Announces Pharmaceutical Giant Lilly Plans $6 Billion Advanced Manufacturing Plant in Huntsville. December 2025.
- Commonwealth of Pennsylvania. Governor Shapiro Secures Historic $3.5 Billion Investment from Lilly to Build New Pharmaceutical Manufacturing Facility in Lehigh County. January 30, 2026.
- Indiana Capital Chronicle. Braun unveils $1 billion agriculture and life sciences initiative. March 17, 2026.
- Eli Lilly and Company. Lilly reports second-quarter 2026 financial results, raises full-year guidance, and highlights continued growth and pipeline progress. August 5, 2026.
- StockAnalysis. Eli Lilly and Company (LLY) Market Cap & Net Worth. September 14, 2026.
- Bloomberg. Lilly Endowment Is First to Hit $100 Billion Mark on Stock Surge. November 25, 2025.
- Lilly Endowment Inc. History and Founders.
Frequently asked questions
Is Eli Lilly the largest employer in Indiana?
No. Lilly was Indiana's 10th-largest employer in 2025 with 13,206 full-time-equivalent jobs, behind Walmart (44,751) and Kroger (19,130) among for-profit companies. It is, however, the largest for-profit employer headquartered in the state, directly employing 14,700 Hoosiers full- and part-time.
What is the LEAP district and where is it?
The LEAP Research and Innovation District is a Lilly manufacturing and R&D campus in Lebanon, Boone County, Indiana. Lilly is building three sites there — Lilly Lebanon Advanced Therapies, Lilly Lebanon API and the Lilly Medicine Foundry — an investment the IBRC's Lilly economic impact report puts at $18 billion, while the IBRC's 2026 Indianapolis forecast cites $13 billion.
How much has Lilly invested in Indiana since 2020?
More than $21 billion, after an additional $4.5 billion announced on May 6, 2026 across two of its three Lebanon sites. Nationally, Lilly's U.S. capital expansion commitments since 2020 total more than $50 billion.
Is Lilly Endowment the same thing as Eli Lilly and Company?
No. The Endowment is a private foundation that operates independently from the drugmaker, though it is Lilly's largest shareholder, holding 92.5 million LLY shares. It funds religion, education and community development, with a focus on Indiana.
How much is Lilly Endowment worth?
About $102 billion as of November 25, 2025, after Lilly hit $1 trillion in market value. At the end of 2024 it was already the largest U.S. foundation at $79.9 billion, ahead of the Gates Foundation's $77.2 billion. Its 2025 GIFT IX initiative allocated up to $271.5 million for Indiana community foundations.
Why did Indianapolis job growth outpace the rest of Indiana?
Life sciences led the way. Between August 2024 and August 2025, chemical manufacturing — dominated by pharmaceuticals — grew 6.0% and professional, scientific and technical services grew 4.8%, while total employment grew 1.1% in the metro versus 0.4% statewide. The data show pharma outpacing other sectors, not that GLP-1 demand alone caused the growth.
Could the boom reverse if GLP-1 demand slows?
It's a real concentration risk. Lilly generates about 70% of Indiana's pharmaceutical manufacturing GDP, and the IBRC's 2026 Indianapolis forecast flags headwinds including tariff-induced export reductions, government-mandated price discounts and FDA approval delays from a smaller staff. Lilly's four new U.S. sites also mean Indiana is no longer its only manufacturing base.
What drugs will be made in Lebanon, Indiana?
Lilly has announced plans to produce Zepbound and Mounjaro at the Lebanon API site, along with Foundayo (orforglipron), its oral GLP-1 pill, and retatrutide, an investigational medicine available legally only to clinical trial participants.
This article summarizes FDA labeling, published research and company information current as of October 18, 2026. It is not medical advice and does not replace a conversation with your own healthcare provider. How we research and verify.