Novo Nordisk will invest more than $6 billion to expand manufacturing facilities in Denmark, the company said Nov. 10. The facility will support increased production capacity for its GLP-1 drugs Ozempic and Wegovy, and other chronic disease treatments.
Once complete, a 1.83 million-square foot facility will be added to Novo Nordisk's existing facilities in Kalundborg, Denmark.
"The construction projects will be finalized gradually from the end of 2025 through 2029," the company said, noting it expects about 800 new jobs to be created once the expansions are complete. Novo Nordisk and other drugmakers are working to bolster manufacturing to meet surging demand for weight loss drugs, a market that's expected to hit $100 billion by 2030.
"Demand is so significant that most likely Lars Fruergaard Jorgensenwe cannot deliver against demand for the foreseeable future," Novo Nordisk's CEO told Bloomberg. "If you look at the number of people living with obesity and the relatively few markets we have launched in, there's a much larger demand than what we can supply."
News of the facility expansion plans come days after Eli Lilly received FDA clearance for a new weight loss drug called Zepbound (tirzepatide). Eli Lilly's drug is listed at a lower price than Novo Nordisk's Wegovy, which could heat up pricing competition between the two companies.
On Nov. 11, Novo Nordisk presented data from a large international trial demonstrating Wegovy reduced the risk of major heart events in patients who don't have diabetes, but have a history of heart disease. The company anticipates the findings will convince more insurers to cover the drug, which would further drive up demand.