Greater Richmond’s Pharma Cluster Keeps Compounding
The steady run of investment since, from Lilly’s $5 billion plant to a 10,500-square-foot lab expansion in downtown Richmond, suggests the region intends to keep building on it. The post Greater Richmond’s Pharma Cluster Keeps Compounding appeared first on GEN - Genetic Engineering and Biotechnology News .
A year after Eli Lilly's $5 billion manufacturing announcement, Greater Richmond's pharmaceutical cluster continues to expand, driven by companies and institutions already established in the region. The anchor for this growth is Lilly's new facility, set to create 650 high-wage jobs and 1,800 construction jobs. CEO Dave Ricks chose Richmond due to the local workforce, incentives, utility access, and favorable zoning.
This is just the first of four domestic facilities Lilly plans to open as part of its $50 billion reshoring commitment.
Within weeks of Lilly's announcement, AstraZeneca and Merck joined, committing $120 million to the Virginia Center for Advanced Pharmaceutical Manufacturing. This workforce training program, developed with the Virginia Innovation Partnership Corporation and local colleges, aims to graduate 2,000 to 2,500 Virginians annually with skills ranging from technician certifications to advanced degrees.
While Lilly's move was the anchor, the region's pharmaceutical cluster began taking shape in 2020. Private companies, elected officials, economic development organizations, and university researchers started discussing reshoring pharmaceutical manufacturing. This effort formed the Alliance for Building Better Medicine, anchored by the Medicines for All Institute at Virginia Commonwealth University.
The Institute secured $60 million from the Gates Foundation to develop low-cost AIDS drugs, inspiring the continuous-manufacturing approach behind Richmond-based Phlow Corp.
The Alliance secured $15.9 million from the U.S. Economic Development Administration in July for an "end-to-end" commercialization project. This project will see Phlow and Occam Systems manufacture chemical building blocks and active ingredients for drugs like ketamine, midazolam, norepinephrine, and succinylcholine, used in emergency, anesthesia, and critical care settings. Civica Rx will then produce the finished medicines at its nearby plant.
Greater Richmond's research infrastructure has grown alongside these developments. Activation Capital announced a 10,500-square-foot addition to the Virginia Bio+Tech Park in downtown Richmond, doubling the center's lab capacity. Existing employers have also expanded, with Haleon investing $54 million to upgrade its Richmond facility and launch a paid internship pipeline.
Anton Paar is building out its U.S. headquarters in Hanover County, and Civica is constructing a 50,000-square-foot R&D and quality-testing lab in Chesterfield.
These investments reflect a strategy pursued since 2020: building manufacturing capacity, research space, and trained workforce simultaneously. The region's Tech Hub designation from the U.S. Department of Commerce in 2023 gave this strategy federal recognition. The steady stream of investment since Lilly's announcement suggests the region intends to continue this momentum.
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