Novo Nordisk invests US$1.2 B in new production facility in Odense, Denmark

DENMARK—Danish pharmaceutical leader Novo Nordisk has announced an ambitious plan to invest 8.5 billion Danish kroner (US$1.2 billion) in a state-of-the-art production facility in Odense, Denmark.

This marks the company’s first groundbreaking project in Denmark this century, highlighting its commitment to its home country. 

The new facility, covering over 40,000 square meters, will feature advanced production lines and a warehouse designed with modularity and flexibility.

It aims to accommodate multiple product types, particularly for rare diseases like hemophilia, ensuring the company can meet future demands.

Additionally, Novo Nordisk has pledged to prioritize sustainability throughout the project. Plans include planting over 4,000 trees, equipping buildings with solar panels, and reusing materials such as excess soil and wood to create lakes, forests, and public community spaces. 

Henrik Wulff, Novo Nordisk’s Executive Vice President for Product Supply, Quality & IT, emphasized the company’s dedication to maintaining high-quality standards for its life-changing medicines.

 He also highlighted Odense’s strategic location, dynamic community, and talented workforce as key factors in the decision. 

Construction on the facility has already begun and is expected to be completed by 2027.

Once operational, the site will create 400 permanent jobs, while up to 1,000 external workers will be employed during construction. 

Novo Nordisk acquires of Catalent for US$11.7 Billion

This announcement comes shortly after Novo Nordisk fulfilled all regulatory conditions for acquiring Catalent, Inc., a global contract development and manufacturing organisation based in New Jersey, USA.

The deal includes three manufacturing sites from Novo Holdings A/S, announced in February 2024, and is expected to close in the coming days. 

The US$11.7 billion acquisition is set to impact Novo Nordisk’s financial outlook.

The company anticipates a slight decline in operating profit growth and a reduction in free cash flow in 2024 due to the acquisition’s cost.

In 2025, operating profit growth is expected to take a moderate hit, primarily due to debt financing and interest payments.

Despite these challenges, Novo Nordisk remains committed to internal growth investments, supply chain expansion, and dividend payments, though it does not plan to launch a share buyback program in 2025. 

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