Novo Nordisk to Invest $4.1 Billion in US Manufacturing Expansion
Money | June 24, 2024, 3:34 p.m.
Novo Nordisk, a leading obesity drug-maker, is investing $4.1 billion in a new U.S. facility to meet the growing demand for its popular weight-loss treatment Wegovy and diabetes drug Ozempic. The construction of the plant in North Carolina is set to be completed by 2029, adding 1,000 new workers to the existing 2,500. The company's shares have surged due to the success of Wegovy, but shortages have led to restrictions on patient numbers. With competitors like Eli Lilly entering the market, the demand for obesity treatments is expected to reach $150 billion annually by the early 2030s. Novo is ramping up production capacity by investing in new facilities and acquisitions such as buying a contract drugmaker. The focus of the new facility will be on producing Wegovy and Ozempic, with potential for manufacturing other medicines in the future.