One of Novo Nordisk’s Largest Production Investments in History
Novo Nordisk has revealed plans to invest $4.1 billion (approximately DKK 27 billion) to construct a second filling and finishing plant in Clayton, North Carolina. This investment will also expand the capacity to produce both current and future injectable medications aimed at treating obesity and other serious chronic diseases. This is a huge investment. The expansion will add 1.4 million square feet of aseptic and finished product manufacturing space, effectively doubling the total footprint of the company’s three existing facilities in North Carolina. Aside from that, the expansion will create 1,000 new jobs, adding to the nearly 2,500 employees Novo Nordisk already has in this U.S. hub of innovation and biotechnology. In 2024, the company plans to significantly boost its production investment to around $6.8 billion (DKK 45 billion), up from $3.9 billion (DKK 26 billion) the previous year.
• Some key figures about Novo Nordisk. It is a global leader in healthcare founded in 1923 and based in Denmark. The company employs approximately 66,000 people across 80 countries, with its products available in around 170 countries.
• About existing production. Novo Nordisk already has a global manufacturing network with five strategic production sites in Denmark, the USA, France, Brazil, and China. These facilities are responsible for producing nearly 50% of the world’s insulin, GLP-1 medications for diabetes and obesity, and treatments for rare diseases like hemophilia and growth disorders. The production division employs 20,000 people.
• In line with the times. The new facility is characterized by its commitment to environmental sustainability, incorporating advanced technologies, rooftop solar panels, and innovative water supply strategies. The aim is to attain LEED Gold certification, a recognized standard for constructing healthy, efficient, carbon-neutral, and cost-effective green buildings. Clearing and foundation work have already begun on the 56-acre site, with construction expected to be completed gradually between 2027 and 2029. At the project’s peak, around 2,000 external contractors will be involved.
• In reality, the investment is part of Novo Nordisk’s strategy to compete with Lilly (Eli) for a greater market share in the burgeoning segment of GLP-1 medications used to treat diabetes and weight-loss. This market is expected to grow from $42 billion this year to an estimated $130 billion by 2030. Novo Nordisk’s weight-loss drug Wegovy and diabetes drug Ozempic, alongside competing medications Zepbound and Lilly’s Mounjaro, have faced shortages recently, as reported by the U.S. Food and Drug Administration (#LLY). Both firms have invested billions to boost the production of these self-administered injectable drugs. This year, Novo Nordisk reached an agreement to acquire three fill-and-finish facilities from Catalent for $11 billion. This transaction was part of a larger deal involving the U.S. contract drugmaker and Novo Nordisk’s parent company, Novo Holdings. Last month, Lilly announced a $5.3 billion investment to construct a facility in Indiana for manufacturing tirzepatide, the key ingredient in its weight-loss medications. Since 2020, Lilly has invested $18 billion in constructing production facilities across five locations in the United States and Europe. The soaring demand for weight-loss drugs has propelled Novo Nordisk to become the most valuable company in Europe. Since the beginning of the year, Novo Nordisk has risen by 38%, while Lilly has increased by 53%.