Drugmakers are regionalising GLP-1 manufacturing as demand surges, shortages persist and geopolitical disruption threatens global pharmaceutical supply routes.

Drugmakers are increasingly regionalising manufacturing of GLP-1 therapies as soaring demand, periodic shortages, and geopolitical disruption reshape global pharmaceutical supply chains, according to industry analysis.

The shift is being driven by the rapid expansion of obesity and diabetes treatments, alongside pressure on production networks to remain resilient during logistics disruption and trade uncertainty. Companies are responding by expanding local manufacturing footprints in key growth markets and strengthening regional distribution systems to reduce dependence on long-haul supply routes.

Eli Lilly is among the most active in this transition, with plans to expand manufacturing and supply capabilities across Asia. The company is strengthening production capacity in China and Japan as part of a broader effort to support localisation of oral solid-dose medicines, including its oral GLP-1 candidate orforglipron, which is under regulatory review in China and progressing through global development pathways.

Lilly has also built significant inventory buffers for its metabolic portfolio, including reported stockpiling of around $1.5 billion in orforglipron supply ahead of wider rollout planning for the oral GLP-1 candidate, reflecting an emphasis on launch readiness and continuity of supply in high-demand therapeutic areas.

Edita Hamzic, healthcare analyst at GlobalData, said: “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.”

She added: “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.”

The company is also reported to be investing around $3 billion in China over the next decade to expand manufacturing infrastructure for oral solid-dose medicines, alongside upgrades linked to its Suzhou operations and broader regional supply network. In Japan, Lilly is investing JPY20 billion ($126 million) to expand its Kobe facility, adding production, warehousing, and digital upgrades expected to be completed by 2028.

Alongside Lilly’s expansion, other companies are also adjusting their manufacturing footprint. Novo Nordisk is upgrading its Athlone facility in Ireland to support production of tablet-form semaglutide for markets outside the US, while Samsung Biologics and Lilly are developing additional capacity partnerships in Asia, including a Lilly Gateway Labs site in Incheon. Aenova has also expanded high-speed packaging capacity in Germany to support increasing demand for oral and injectable therapies.

Geopolitical disruption is also contributing to supply chain reassessment, particularly across Middle Eastern logistics routes that connect Asia, Europe, and the Gulf. Industry participants are increasingly monitoring air cargo and temperature-sensitive transport corridors as they seek to protect biologics, raw materials, and finished dose supply chains from potential interruption.

Hamzic concluded: “The pattern is increasingly clear; pharma companies are building manufacturing capacity closer to demand centers while also insulating themselves from geopolitical shocks. Lilly’s China and Japan investments fit that trend, and the current Middle East situation is likely to reinforce it further across the sector.”