Novo Nordisk, a leading pharmaceutical company, has announced plans to invest over 42 billion Danish kroner ($6.01 billion) in expanding its manufacturing capacity in Kalundborg, Denmark. The majority of this investment will be focused on increasing production of active pharmaceutical ingredients, particularly for its popular GLP-1 products used in diabetes and obesity treatment.
The decision to expand comes as Novo Nordisk faces challenges in meeting the growing demand for its GLP-1 drugs. In order to ensure an adequate supply for current patients, the company has had to limit the availability of lower-strength doses of its highly sought-after weight-loss medication, Wegovy, in the U.S. This limitation has led to an increase in demand for Novo Nordisk’s diabetes drug, Ozempic, as it shares the same active ingredient as Wegovy. As a result, there have been shortages of Ozempic among diabetes patients relying on it for their treatment.
The construction of the new production facilities will be completed gradually from the end of 2025 through 2029. This substantial investment follows Novo Nordisk’s previous announcements of DKK40 billion in production investments in Denmark over the past two years. Furthermore, the company has hired approximately 1,100 employees to support these investments in production. Additionally, Novo Nordisk is currently awaiting approvals for a new production site on Funen, Denmark.
Novo Nordisk’s commitment to expanding its manufacturing capacity in Denmark reflects its dedication to meeting the future market demands for its vital pharmaceutical products. With this significant investment, the company aims to ensure a stable and sufficient supply of medications for patients worldwide.