Pharmaceutical giant Eli Lilly and Co. is exploring a potential $5.9 billion biomanufacturing facility in Northeast Houston, according to documents filed with the Texas state comptroller. The Indianapolis-based company is considering a 236-acre tract within McCord Development's Generation Park for what would become one of its four new U.S. manufacturing sites.
The proposed facility would have a direct economic impact worth $2.5 billion over 10 years and create approximately 600 permanent jobs across operations, engineering, quality assurance, and administration. Additionally, the project is expected to generate more than 2,000 construction jobs during its five-year development phase.
Tax Incentives and Economic Impact
As part of the site selection process, Eli Lilly has applied for tax incentives through Texas' new Jobs, Energy, Technology and Innovation program, which replaced the previous Chapter 313 incentive system. The proposed agreement would limit the local school district to taxing only 50% of the project's appraised value for a decade.
The company's application outlines a capital investment of nearly $5.75 billion in facility development, plus an additional $150 million for land and equipment. According to economic impact statements filed with the state, the project would generate approximately $2.4 billion in local tax revenue over a 10-year period.
Part of Larger Manufacturing Expansion
The Houston facility, if selected, would be part of Eli Lilly's broader manufacturing expansion announced in February. The company plans to more than double its U.S. manufacturing investment, bringing its capital expansion commitments to over $50 billion since 2020. The additional $27 billion would fund four new pharmaceutical manufacturing sites across the country.
Eli Lilly manufactures several high-demand medications, including Mounjaro and Zepbound, which compete with Ozempic in the rapidly growing GLP-1 receptor agonist market for diabetes and weight management.
"As announced in February, Lilly is actively evaluating manufacturing site locations throughout the U.S. to expand capacity to meet the growing demand for our current and future pipeline medicines across multiple therapeutic areas," a company spokesperson said in a statement to the Houston Chronicle. "Any future decisions will be shared at the appropriate time."
Houston's Growing Life Sciences Sector
The potential Eli Lilly facility represents a significant opportunity for Houston's emerging life sciences sector. McCord Development has strategically positioned Generation Park as a hub for biotech and advanced manufacturing, particularly after Amgen selected North Carolina over Houston for a $550 million biomanufacturing project in 2022.
To strengthen the area's appeal to life sciences companies, McCord Development has partnered with San Jacinto College and Ireland's National Institute for Bioprocessing Research and Training (NIBRT) to establish a biotech workforce pipeline. The San Jacinto College's Center for Biotechnology, which will provide NIBRT-licensed programs, is scheduled to open this summer.
"We've continued to fortify the infrastructure within Generation Park so companies of this size can be confident they'll be able to operate efficiently," said Shawn Cloonan, general counsel for McCord Development.
The developer is also advancing BioHub Two, a 45-acre biomanufacturing campus within Generation Park, further enhancing the area's appeal to pharmaceutical manufacturers.
Decision Timeline
While the tax incentive application signals serious interest, Eli Lilly has not yet confirmed its final decision regarding the Houston site. The company continues to evaluate multiple locations across the United States as part of its manufacturing expansion strategy.
If selected, the Houston facility would include multiple buildings, manufacturing operations, and support facilities, establishing a significant pharmaceutical manufacturing presence in the region and potentially anchoring further life sciences development in the area.
