Topline
Novo Nordisk will invest $4.1 billion to develop a new manufacturing facility in the U.S., which will be used to boost production for the company’s weight loss and diabetes drugs Wegovy and Ozempic, the Danish firm said Monday.
Key Facts
Novo Nordisk said the funds will be used to develop a 1.4 million square foot facility in Clayton, North Carolina, where the company’s medicines—like Ozempic and Wegovy— will be filled into injector pens before they are shipped to customers.
The new facility will join three of the company’s existing facilities in the area while adding 1,000 new jobs, according to Novo Nordisk.
Construction for the 56-acre facility is underway and is expected to be completed between 2027 and 2029, Novo Nordisk said.
There is “limited availability” for most injections of Wegovy because of increased demand for the drug, according to the Food and Drug Administration, though each injection of Ozempic is available.
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Big Number
$6.8 billion. That’s how much Novo Nordisk said it plans to spend on production this year, up from last year’s investment of $3.9 billion.
What To Watch For
Lars Jorgensen, Novo Nordisk’s chief executive, will testify before a Senate committee in September about the prices of Ozempic and Wegovy in the U.S. Sen. Bernie Sanders, I-Vt., demanded Novo Nordisk lower the “outrageously high” price of Ozempic and Wegovy earlier this year. Monthly supplies of Ozempic and Wegovy cost about $1,000 and $1,300 in the U.S., compared to $300 and $400 in Canada, respectively.
Key Background
Novo Nordisk has spent billions of dollars to increase its manufacturing capabilities in recent years amid the rising popularity of its weight loss and diabetes drugs. In November, the company announced a $6 billion expansion to its drug ingredient factory in Kalundborg, Denmark. Less than two weeks later, the company said it would spend $2.3 billion to boost production at a manufacturing facility in Chartres, France. That investment will significantly increase production capacity for the company’s medicines, including Ozempic, Wegovy and other obesity treatments in development by 2028, Novo Nordisk said.
Tangent
Eli Lilly announced a $5.3 billion investment into a new manufacturing site earlier this year, boosting production for the company’s weight loss and diabetes medications Mounjaro and Zepbound. There is limited availability for some injections of either drug, according to the FDA, which cited increased demand. Production at the site is expected to begin toward the end of 2026, according to the company, which noted the investment is the largest in its 150-year history.