Durham County awards Lilly $5M to expand RTP drug plant. Here’s what we know.

Pharmaceutical giant Lilly is expanding its presence in Research Triangle Park after securing $5 million from Durham County on Monday night.

Lilly started work on a $1.7 billion facility in RTP in 2020. It anticipates beginning production of Trulicity and Tirzepatide, two drugs that treat Type 2 diabetes, this year following Food and Drug Administration inspections.

The number of people with diabetes has surged in recent decades and is projected to continue rising, according to the World Health Organization. Type 2 diabetes — “largely the result of excess body weight and physical inactivity,” the WHO reports — accounts for 95% of cases.

Lilly said it will invest $450 million, create an additional 100 jobs and add nearly $10 million in local property tax revenue as it expands over the next five years.

“This investment is key to ensuring even more patients will have access to medicines they need in the future,” the company’s head of manufacturing operations Edgardo Hernandez said in a news release.

The Durham County Board of Commissioners voted unanimously Monday night to approve the deal and award the company $5 million in incentives.

Commissioners Vice-Chair Wendy Jacobs said the county is “thrilled” Lilly is expanding.

“This is a significant investment in our property tax base,” she said. “At the end of the day, that’s what pays for all the programs and services in our community.”

Durham Tech, public schools to partner with Lilly

The $5 million investment from the county, to be paid out by 2030, is contingent on the pharmaceutical company hitting the job creation, investment and community partnership metrics outlined in its proposal.

The site will house production lines for the two drugs and be fully operational by 2027. The company intends to hire employees with a two-year or technical degree for an average annual salary of $56,408.

It agreed to make “reasonable efforts” to partner with local institutions, including Durham Technical Community College, to hold workforce development events like job fairs and career panel courses.

“Ensuring a talented workforce is a team sport. It takes companies, state and local government, and Durham Tech working together to create a diverse talent pipeline of skilled individuals capable of fulfilling jobs in our region,” college President J.B. Buxton said in an email.

The company has also agreed to offer several more community outreach programs, including a paid internship for local college graduates, an apprenticeship program, and a lab technique teaching program at local community colleges.

“It’s essential to establish relationships from the middle schools and high schools on up to community college and universities,” the county’s Economic Development Director Andy Miracle told The News & Observer. “It benefits both the companies trying to meet their workforce needs as well as prepares our local talent for these tremendous career opportunities.”

Gov. Cooper: ‘Best state to do business’

Lilly, also known as Eli Lilly & Co., made another big investment last year in North Carolina, breaking ground in June on a $1 billion plant in Concord to produce medicines treating diabetes, obesity and Alzheimer’s.

The company, which has a market cap over $325 billion, estimates it’s invested $4 billion in the state since 2020.

“When companies already in North Carolina choose to expand here, it reaffirms our status as the best state to do business,” Gov. Roy Cooper said in a news release.

The name of the company involved in the Durham investment was kept confidential until the public hearing began Monday night, described only as “Project Carter.”

Miracle said Lilly’s expansion reinforces the Triangle’s strength in the life sciences sector.

“This is proof that Durham is a business-friendly community looking to make new and innovative investments,” agreed Bryan Fox, vice president at the Greater Durham Chamber of Commerce.

Catalent also awarded cash

In a separate vote, the county awarded biotech firm Catalent $150,000 for its expansion to RTP.

The N&O reported in December that Catalent planned to invest nearly $40 million and create 201 jobs at a new facility in RTP.

The state is putting $1 million toward the facility, which will be used for testing and analytical development.

“We’ve been committed to the state of North Carolina for 20 years,” Jeremie Trochu, who heads up Catalent’s bioanalytics division, said Monday.

The vote for Catalent’s incentives also was unanimous.