DENMARK —Danish pharmaceutical company, Novo Nordisk has announced a significant investment of 15.9 billion Danish crowns (approximately US$2.29 billion) to expand its production facility in Denmark.
This expansion aims to boost the manufacturing capacity for chronic disease treatments, reinforcing Novo Nordisk’s commitment to developing life-saving medicines.
The investment aligns with the company’s celebration of its 100th anniversary since its founding in Denmark, where a significant portion of its global workforce is located.
Henrik Wulff, Novo Nordisk’s Head of Product Supply, Quality, and IT, emphasized the importance of this investment, stating, “This important investment will ensure the continuous development of our late-phase pipeline into deliveries of important medicines for treatments to patients worldwide.”
The expansion in Hillerød, Denmark, will create additional production capacity, enabling Novo Nordisk to meet future market demands and support the development of its clinical late-phase product portfolio.
Notably, the expansion plans do not include the production of semaglutide, the key ingredient found in Novo Nordisk’s popular diabetes and weight-loss drugs, Ozempic and Wegovy.
Instead, the new facility, spanning approximately 65,000 square meters, will be a state-of-the-art, multi-product site designed to accommodate new processes with maximum flexibility.
The construction of the facility focuses on delivering high-quality medications to patients globally while emphasizing efficiency and environmental sustainability.
The design incorporates optimal and compact process flows, allowing for a significant reduction in water and energy consumption.
The construction of the new facility is currently underway, and it is expected to begin producing active pharmaceutical ingredients (APIs) by early 2029.
Novo Nordisk had previously announced a separate investment of 5.4 billion Danish kroner (approximately US$749 million) to enhance API production for clinical trials at its Bagsvaerd site in Denmark.
Aside from Denmark, Novo Nordisk also manufactures APIs in New Hampshire and its expansive complex in Clayton, North Carolina.
The company recently completed a US$2 billion project in 2021, constructing a second plant at the North Carolina site and securing an additional 104 acres of land for future expansion.
This expansion aligns with Novo Nordisk’s current focus on the launch of its obesity drug, Wegovy.
Due to overwhelming demand, the company has made adjustments to its distribution strategy, throttling starter doses and temporarily pausing marketing efforts.
Wegovy, which shares the same active ingredient as the widely used diabetes drug Ozempic, is expected to generate significant revenue.
Analysts from ODDO BHF anticipate that Wegovy and Ozempic will generate US$4.2 billion and US$11.1 billion in sales, respectively, in 2023.
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