By: IPP Bureau
Last updated : April 14, 2026 4:33 pm
At the centre of this shift is Eli Lilly and Company, whose latest investments in China and Japan are helping redefine the next phase of GLP-1 supply strategy
Pharmaceutical companies are rapidly regionalising GLP-1 manufacturing capacity and redesigning supply chains to safeguard product availability, reduce launch risks, and mitigate rising geopolitical disruptions, according to GlobalData.
The trend reflects a broader structural shift in the pharmaceutical industry, where rising demand for metabolic therapies—particularly oral GLP-1 medicines—is converging with logistics volatility and regional policy pressures. Drugmakers are increasingly localising production, building strategic inventories, and strengthening Asia-focused manufacturing networks to ensure supply continuity across key markets.
At the centre of this shift is Eli Lilly and Company, whose latest investments in China and Japan are helping redefine the next phase of GLP-1 supply strategy. The company’s new regional manufacturing plans are designed to strengthen local production for high-demand metabolic therapies, while ongoing instability across Middle East logistics corridors is sharpening industry focus on resilience, route diversification, and stockpiling.
Lilly has already built approximately $1.5 billion in pre-launch inventory of orforglipron, now marketed in the US as Foundayo, ahead of its broader global rollout. The oral GLP-1 weight-loss therapy recently secured US FDA approval, reinforcing the urgency of securing scalable supply for anticipated global demand.
Edita Hamzic, Healthcare Analyst at GlobalData, says: “Lilly’s latest investments show that the GLP-1 market is no longer being shaped by demand alone. Companies are now building geographically segmented manufacturing networks to serve local markets, manage policy pressures, and protect against disruptions that could affect access to critical medicines.”
According to GlobalData’s latest “Bio/Pharmaceutical Outsourcing” report, Lilly plans to invest $3 billion in China over the next decade to build a more localised manufacturing and supply network for oral solid-dose medicines, including capacity linked to its Suzhou operations and oral GLP-1 candidate orforglipron. The company is also working with CDMO partners to support development and commercial supply for the once-daily oral therapy, which is under regulatory review in China.
In parallel, Lilly is investing JPY20 billion ($126 million) in its Kobe plant in Japan, adding production, warehousing, and digital process upgrades targeted for completion by 2028. Together, the China and Japan investments significantly strengthen Lilly’s Asia manufacturing footprint while keeping its US supply strategy aligned with domestic policy expectations.
Hamzic explains: “Building local manufacturing needs to be a commercial and operational priority if the return of recent GLP-1 shortages is to be avoided. Producing medicines closer to patients can reduce import dependence, shorten lead times, and improve compliance with local regulatory and labelling requirements. For Lilly, orforglipron is especially strategic because it opens the door to an early oral GLP-1 position in China, where competition remains limited.”