Novo Nordisk, the renowned Danish pharmaceutical company known for its blockbuster obesity drug Wegovy, has announced plans to invest more than $6 billion in expanding its production capacity. The majority of this investment will be dedicated to manufacturing active pharmaceutical ingredients, including those used in Wegovy and Ozempic, a drug used to treat diabetes and obesity.
Due to the surging demand for these drugs, Novo Nordisk has faced challenges in meeting supply requirements. As a result, the company has been compelled to limit the availability of lower-strength doses of Wegovy in the United States to ensure an adequate supply for existing patients.
The restricted availability of Wegovy has led to increased usage of Novo Nordisk’s Ozempic diabetes drug as an alternative. Both medications share the same active ingredient. Unfortunately, this influx in demand for Ozempic has caused shortages and has impacted diabetic patients relying on it for their treatment.
Despite these supply constraints, Novo Nordisk recently reported impressive sales and profit gains attributed to the success of both drugs. However, the company anticipates continued periodic supply challenges and related drug-shortage notifications during its ongoing efforts to invest in and gradually expand its supply capacity.
The investment in boosting production capacity is expected to equip Novo Nordisk to meet future market demands. The construction of new facilities, located in Kalundborg, Denmark, will be completed gradually from the end of 2025 through 2029, according to the company’s announcement on Friday.
Over the past two years, Novo Nordisk has committed DKK40 billion to production investments in Denmark. Additionally, around 1,100 employees have been hired in relation to these investments. Earlier this year, the company confirmed its plans for a new production site in Funen, Denmark, pending necessary approvals.