Novo Nordisk, a Danish drugmaker, announced on Friday that it will invest over 42 billion crowns ($6 billion) in its Danish production facility in the coming years. The purpose of this investment is to meet the increasing global demand for the Wegovy weight-loss treatment. The company stated that the expansion at its Kalundborg site will not only enhance the capacity for manufacturing active pharmaceutical ingredients (API) but also improve other aspects of its value chain, including packaging.
The investment will specifically focus on increasing the capacity for GLP-1 products such as semaglutide, which is the API in Wegovy, as well as the company’s Ozempic diabetes treatment. Novo Nordisk has emphasized that all of its semaglutide is produced in Denmark. Henrik Wulff, Novo’s head of product supply, quality & IT, expressed confidence in the company’s current and future product portfolio, stating that the continued investment in global capacity reflects this belief.
This investment by Novo Nordisk, Europe’s most valuable company in terms of market capitalization, is the largest made by a private sector company in Denmark. According to a company spokesperson, a portion of this investment was already included in a 25 billion crowns capital expenditure plan announced in February. The construction projects are expected to be completed between the end of 2025 and 2029.
As a result of this news, Novo Nordisk’s share price rose by 0.8% as of 0910 GMT, outperforming the wider European stock market, which experienced a 0.6% drop. It is worth noting that the conversion rate is $1 = 6.9904 Danish crowns.
In conclusion, Novo Nordisk’s significant investment in its Danish production facility demonstrates its commitment to meeting the growing demand for the Wegovy weight-loss treatment. The company aims to enhance its manufacturing capacity for semaglutide and other products, reaffirming its confidence in its current and future product portfolio. This investment is the largest made by a private sector company in Denmark and is expected to be completed by 2029. The positive market response is reflected in the increase in Novo Nordisk’s share price.
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