Novo Nordisk Invests $4.1 Billion in North Carolina Facility to Boost Wegovy and Ozempic Output
I recently came across a significant development in the pharmaceutical industry. Novo Nordisk, a leading manufacturer of injectable therapies, has announced a substantial investment of $4.1 billion to construct a new manufacturing facility in Clayton, North Carolina. This move aims to address the growing demand for its successful weight loss drug Wegovy and diabetes treatment Ozempic, both of which belong to the class of medications known as GLP-1s.
The company has faced challenges meeting the demand for these medications, leading to periodic shortages in the U.S. To boost its manufacturing capabilities, Novo Nordisk plans to invest a total of $6.8 billion in production, a substantial increase from the previous year's investment of about $4 billion. This investment will enable the company to better serve patients and further its presence in the U.S.
The new facility, which has already commenced construction, will focus on manufacturing and packaging syringes and injection devices for the drugs. The 1.4 million-square-foot plant is projected to be finalized between 2027 and 2029 and will employ 1,000 workers, supplementing the 2,500 employees currently working at Novo Nordisk's existing manufacturing sites in North Carolina.
Novo Nordisk operates production sites in various countries worldwide, including France, Japan, Brazil, and Russia. The company's commitment to expanding its manufacturing capabilities aligns with the increasing demand for its products, particularly in the U.S. market. With a rising number of patients initiating Wegovy treatment weekly, Novo Nordisk remains cautious about releasing lower doses to ensure continued treatment for existing patients with higher doses.
In response to the heightened demand for GLP-1 medications, competitor Eli Lilly has also dedicated substantial investments to enhance its manufacturing capacity for weight loss and diabetes treatments. The company's products, Zepbound and Mounjaro, are part of this class of medications and are also manufactured in multiple plants located in North Carolina.
Original Article: https://www.cnbc.com/2024/06/24/novo-nordisk-nc-facility-wegovy-ozempic-output.html
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