Ozempic craze: Novo Nordisk invests $4.1B in US to expand manufacturing

Company Investment and Expansion - Novo Nordisk is investing $4.1 billion to expand its U.S. manufacturing capacity to meet the rising demand for weight-loss drugs [1] - The total production investment for this year will increase to $6.8 billion, up from $3.9 billion in 2023 [1] - The expansion will add 1.4 million square feet of production space, effectively doubling the size of its existing facilities in North Carolina [1] - The company plans to create 1,000 new jobs in the region, adding to the nearly 2,500 employees already working there [1] Market Outlook - Morgan Stanley projects the diabetes and obesity drug market will reach $105 billion by 2030, with potential growth to $144 billion over the next six years due to extreme demand [2][4] - Sales of branded obesity drugs reached $6 billion in 2023 [4] - The number of individuals using these drugs could increase to 9% of the population by 2035, which is five times the current rate [5] Demand and Production Challenges - Novo Nordisk has faced production capacity challenges due to the high demand for its drugs, particularly Wegovy and Ozempic, which have gained popularity since 2022 [2] - At least 25,000 Americans are starting treatment with Wegovy each week, a significant increase compared to December 2023 [3] - The demand for these medications could further increase if evidence shows they improve outcomes for obesity-related ailments [5]