TLDR
- Eli Lilly opened a new 82,514 square foot biotech innovation hub in San Diego that can house up to 15 companies and 250 employees
- The facility is the fifth Gateway Labs location, joining sites in San Francisco, Boston, and Beijing
- President Trump is threatening 100% tariffs on pharmaceutical imports unless companies invest in US manufacturing
- Eli Lilly has announced $27 billion in new US manufacturing investments, including a recent $6.5 billion Houston plant
- Gateway Labs companies have raised over $2 billion in funding since the program started in 2019
Eli Lilly just opened its newest biotech innovation hub in San Diego as the company navigates fresh political pressure from Washington. The pharmaceutical giant unveiled its fifth Gateway Labs facility on Friday, a sprawling 82,514 square foot space in the Torrey Pines area.
The new facility can accommodate up to 15 life sciences companies and more than 250 employees. It sits on the One Alexandria Square Megacampus and was developed through a partnership with Alexandria Real Estate Equities.
This marks the latest expansion of Lilly’s Gateway Labs network, which now spans five locations. The company operates two sites in South San Francisco, one in Boston, and one in Beijing.
The Gateway Labs model gives early-stage biotech companies access to wet lab facilities and scientific guidance. Companies also receive strategic support to help navigate the complex drug discovery process.
“The future of medicine depends on combining the strengths of academia, biotech and large pharma to solve some of the most difficult diseases facing patients,” said Daniel Skovronsky, Lilly’s chief scientific officer.
The San Diego opening comes as President Trump renews threats against the pharmaceutical industry. Trump has warned he will impose 100% tariffs on all pharmaceutical drugs imported into the US unless companies boost domestic manufacturing and lower prescription drug prices.
Lilly’s US Investment Surge
The timing of the new facility reflects Eli Lilly’s broader strategy to increase US operations. The company announced plans in September to spend $6.5 billion building a new manufacturing plant in Houston, Texas.
That Houston facility will produce Lilly’s upcoming weight-loss pill. The plant is expected to create 615 permanent jobs and about 4,000 construction positions.
The Houston investment is part of a larger $27 billion commitment to build four new US manufacturing plants. This adds to $23 billion in investments Lilly has made since 2020.
Several early-stage biotechnology companies have already moved into the San Diego facility. The space features flexible laboratory and office designs to accommodate different research needs.
Gateway Labs Track Record
Since the first Gateway Labs opened in 2019, the program has shown strong results. Companies based at these facilities have raised more than $2 billion in capital collectively.
These startups are currently developing over 50 different therapeutics and platforms. The Gateway Labs initiative operates under Lilly Catalyze360, which includes other programs like Lilly Ventures and Lilly ExploR&D.
The San Diego facility represents Lilly’s continued bet on supporting external innovation. The company views partnerships with smaller biotech firms as crucial for developing new treatments.
Wall Street analysts maintain a Strong Buy rating on Lilly stock based on 16 Buy and four Hold recommendations. The average price target of $909.31 suggests 26.77% upside from current levels.
The company has maintained dividend payments for 55 consecutive years and shows strong financial health with 37% revenue growth over the last twelve months.
