Wegovy Maker Novo Nordisk to Spend $6 Billion Boosting Production Capacity -- Update

By Dominic Chopping

Novo Nordisk, the Danish pharmaceutical giant that makes the blockbuster Wegovy obesity drug, said it will invest more than $6 billion to boost production capacity.

Most of the new capacity will be dedicated to manufacturing active pharmaceutical ingredients, including for Wegovy and Ozempic, used to treat diabetes and obesity.

Novo Nordisk has been struggling to meet surging demand for these drugs, and has been forced to limit supply of lower-strength doses of Wegovy in the U.S. as it seeks to safeguard supplies for current patients.

With the limited supply of Wegovy, obesity patients have been turning to Novo Nordisk's Ozempic diabetes drug as an alternative because both medications share the same active ingredient, which in turn has led to Ozempic shortages affecting patients who use it for treating their diabetes.

The company last week reported strong sales and profit gains thanks to the success of both drugs but said it expects continued periodic supply constraints and related drug-shortage notifications as it continues to invest and gradually expand supply capacity.

The new investment will increase the company's ability to meet future market demands, with construction of the new facilities in Kalundborg, Denmark, to be finalized gradually from the end of 2025 through 2029, it said Friday.

Over the past two years, Novo Nordisk has outlined DKK40 billion in production investments in Denmark. It has also added around 1,100 employees related to these investments. Earlier this year, it confirmed that it is awaiting approvals for a new production site in Funen, Denmark.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 10, 2023 03:25 ET (08:25 GMT)

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