Novo Nordisk, renowned for its diabetes and weight-loss treatments, Ozempic and Wegovy, is making a significant investment to expand its production capabilities. The company announced on Monday that it will allocate 8.5 billion kroner ($1.2 billion) to construct a 40,000-square-meter (430,000-square-foot) facility in Odense, Denmark. This marks the company’s first new production site in Denmark in over 20 years.
The new facility is designed to be modular and adaptable, allowing it to produce a variety of drugs for rare diseases, including treatments for hemophilia. “This investment will help meet the growing global demand for our life-changing medicines,” said Henrik Wulff, executive vice president at Novo Nordisk.
The decision to build the new factory comes as Novo Nordisk faces capacity limitations at its existing sites. Despite a strong financial performance, including a 21% rise in net profit to 27.3 billion kroner ($3.85 billion) for the third quarter of 2024, the company has acknowledged the need for expanded production to keep up with demand.
The facility is expected to create 400 jobs once completed in 2027. Construction has already begun, signaling Novo Nordisk’s commitment to bolstering its manufacturing footprint in its home country.
Novo Nordisk’s products have seen remarkable growth, driven by the global rise in obesity and diabetes. Sales of Wegovy, approved for obesity treatment in countries including the UK, US, and Germany, rose by 42% in the first nine months of 2024. Meanwhile, sales of Ozempic, originally an anti-diabetic drug now widely used for weight loss, surged by 54% in the same period. The company holds a commanding 74% share of the weight-loss treatment market.
The World Obesity Federation predicts that over half the global population will be overweight or obese by 2035, with an economic impact exceeding $4 trillion annually. Novo Nordisk is well-positioned to address the growing health crisis with its expanding portfolio of obesity and rare disease treatments.
