Novo Nordisk
NVO,
said Friday that it will invest more than $6 billion to expand manufacturing facilities in Kalundborg, Denmark, where the company produces GLP-1 drugs such as Wegovy as well as other products.
The investment, which is set to begin this year and includes the popular GLP-1 diabetes and obesity medications, “will increase Novo Nordisk’s ability to meet future market demands,” the company said in a release.
The announcement comes as the Danish drugmaker continues to struggle to meet demand for the weight-loss drug Wegovy. In a supply update on the drug dated Friday, Novo Nordisk said that “demand continues to outpace our increasing production of Wegovy. As a result, we anticipate ongoing supply disruption, and are aware that some patients will continue having difficulty filling Wegovy prescriptions.”
The company said it will continue to limit quantities in the U.S. of lower doses of Wegovy “in an effort to support continuity of care for existing patients.”
Wegovy will soon face fierce competition, with Eli Lilly & Co.’s newly approved obesity drug Zepbound set to hit U.S. pharmacy shelves after Thanksgiving.
The manufacturing investment announced Friday will also help boost production of active pharmaceutical ingredients and packaging, Novo Nordisk said. A new 1.8 million-square-foot facility for manufacturing active pharmaceutical ingredients will have the flexibility to accommodate future manufacturing processes, the company said.
The construction projects will be finalized from late 2025 through 2029, Novo Nordisk said.
The company also said earlier this year that it is awaiting approval for a new production site in Funen, Denmark.
Novo Nordisk American depositary receipts were roughly flat in early trading Friday and have climbed 48% in the year to date, while the S&P 500
SPX
has gained 13.7%.
This story originally appeared on Marketwatch
