Biotech
Tuesday, June 25th, 2024 5:13 pm EDT
Key Points
- Novo Nordisk is investing $4.1 billion to construct a new manufacturing plant in Clayton, North Carolina, aimed at increasing production of Wegovy, Ozempic, and other injectable therapies. This move responds to high demand that has led to intermittent shortages in the U.S., prompting the company to ramp up its manufacturing footprint significantly.
- The new facility, slated to be completed between 2027 and 2029, will span 1.4 million square feet and employ 1,000 workers, supplementing the existing 2,500 employees across Novo Nordisk’s three current manufacturing sites in North Carolina. These sites include facilities in Clayton and Durham, handling various stages of production for different medications.
- Wegovy and Ozempic, both GLP-1 medications, are in high demand for their effectiveness in weight loss and diabetes treatment. Despite shortages of lower doses in the U.S., Novo Nordisk remains committed to ensuring patients can access these therapies, managing distribution carefully as demand continues to rise. Additionally, competitor Eli Lilly is similarly investing heavily to expand production capacity for its own GLP-1 medications in North Carolina.
Novo Nordisk announced a $4.1 billion investment to build a new manufacturing plant in Clayton, North Carolina, aiming to boost the supply of its popular weight loss drug Wegovy and diabetes treatment Ozempic, along with other injectable therapies. The Danish pharmaceutical company has faced significant demand for these drugs, leading to intermittent shortages in the U.S. over the past year. To address this, Novo Nordisk plans to increase its production investment to $6.8 billion this year, up from approximately $4 billion last year.
The new facility, designed for filling and packaging syringes and injection pens, marks a significant expansion in Novo Nordisk’s manufacturing capabilities in the U.S. According to Doug Langa, the head of North American operations, this investment underscores the company’s commitment to serving more patients and furthering its presence in the U.S. The 1.4 million-square-foot plant is currently under construction and is expected to be operational between 2027 and 2029, creating 1,000 new jobs. This will add to the existing workforce of 2,500 employees at Novo Nordisk’s three current manufacturing sites in North Carolina.
In Clayton, the company already operates two facilities—one for fill and finish work and another for producing the active ingredient in the diabetes pill Rybelsus. Additionally, there is a site in Durham for manufacturing and packaging oral drugs, and a facility in West Lebanon, New Hampshire. Globally, Novo Nordisk operates twelve other production sites across Denmark, France, China, Japan, Algeria, Brazil, Iran, and Russia.
The high demand for Wegovy has led to shortages of its three lower doses in the U.S., as noted in an FDA database. Wegovy and Ozempic are GLP-1 medications that help suppress appetite and regulate blood sugar by mimicking gut hormones. Currently, around 35,000 U.S. patients start Wegovy each week, up from approximately 27,000 in May. However, the company is carefully managing the release of lower doses to ensure continuity of treatment for existing patients progressing to higher doses.
Eli Lilly, a competitor, is also investing billions to expand its manufacturing capacity for its GLP-1 drugs for weight loss and diabetes, such as Zepbound and Mounjaro. Like Novo Nordisk, Eli Lilly has several production facilities in North Carolina, reflecting a broader industry trend of expanding manufacturing capabilities to meet growing demand for these therapies.
Overall, Novo Nordisk’s substantial investment in its North Carolina plant is a strategic move to address the surging demand for its GLP-1 medications, mitigate shortages, and reinforce its commitment to the U.S. market, thereby ensuring that more patients have access to these critical treatments.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/24/novo-nordisk-nc-facility-wegovy-ozempic-output.html
