Novo Nordisk Invests $4.1 Billion For New US Facility—Boosting Ozempic Production

Core Viewpoint - Novo Nordisk is investing $4.1 billion to develop a new manufacturing facility in the U.S. to enhance production of its weight loss and diabetes drugs, Wegovy and Ozempic [1] Group 1: Investment and Facility Development - The new facility will be located in Clayton, North Carolina, covering 1.4 million square feet and will focus on filling the company's medicines into injector pens [2] - Novo Nordisk plans to spend a total of $6.8 billion on production this year, an increase from $3.9 billion last year [3] - The construction of the 56-acre facility is currently underway and is expected to be completed between 2027 and 2029, adding 1,000 new jobs [2] Group 2: Market Demand and Pricing Issues - There is currently "limited availability" for most injections of Wegovy due to increased demand, while Ozempic injections are available [2] - Monthly supplies of Ozempic and Wegovy cost approximately $1,000 and $1,300 in the U.S., significantly higher than the $300 and $400 prices in Canada [4] Group 3: Background and Industry Context - Novo Nordisk has been increasing its manufacturing capabilities significantly in recent years, including a $6 billion expansion in Kalundborg, Denmark, and a $2.3 billion investment in Chartres, France [5] - The company aims to significantly boost production capacity for its medicines, including Ozempic and Wegovy, by 2028 [5] Group 4: Competitive Landscape - Eli Lilly has also announced a $5.3 billion investment in a new manufacturing site to enhance production for its weight loss and diabetes medications, Mounjaro and Zepbound, amid similar demand challenges [6][7]