Novo Nordisk to Invest $4.1 Billion in Expanding Manufacturing Capabilities in the United States

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Novo Nordisk announced plans to invest $4.1 billion toward the expansion of its manufacturing capacity in Clayton, North Carolina. The funding will be used to construct a new fill and finish manufacturing facility aimed at increasing the production of injectable treatments for obesity and chronic diseases. According to the company, the investment is one of its largest, with an estimated addition of 1,000 jobs expected to be added to an existing workforce of 2,500 people. Additionally, the expansion will add 1.4 million square feet to the site.¹

“It took us a century to reach 40 million patients, but through this expansion and continued investment in our global production, we’re building Novo Nordisk’s ability to serve millions more people living with serious chronic diseases in the future,” said Lars Fruergaard Jørgensen, president, CEO, Novo Nordisk, in a press release. “This is yet another real signal of our efforts to scale up our production to meet the growing global need for our life-changing medicines and the patients of tomorrow.”

Construction of the 56-acre facility is expected to be completed anywhere between 2027 and 2029, engaging around 2,000 external contractors at its peak. This year, the company is expected to increase its overall production investment to approximately $6.8 billion, up from $3.9 billion last year, with the goal of further boosting its supply capabilities. Additionally, the facility will include solar panels and innovative water strategies, with the goal of achieving LEED Gold certification for environmental sustainability.¹

“Clayton was the first manufacturing site for Novo Nordisk in the US, and this new, large-scale investment confirms the continued importance of our production facilities there as cornerstones of our company’s growth,” said Henrik Wulff, EVP, Product Supply, Quality & IT, Novo Nordisk, in the press release. “For decades, we have partnered to foster a well-trained, dedicated and diverse local workforce in North Carolina. In Clayton and across our global manufacturing sites, we are driven by one purpose: to deliver more for the millions of people living with chronic diseases—and this facility will help us achieve just that.”

Last month, the manufacturer of Ozempic and Wegovy announced plans to invest $6 billion to help alleviate shortages of these drugs and to keep up with high demand. According to the FDA, the three smallest doses of Wegovy are currently low in availability. Ozempic has also experienced shortages as a result of the high demand. Despite the shortages, Novo Nordisk stated that it has enough supply to start 25,000 patients on Wegovy weekly.²

Last year, Novo Nordisk warned of counterfeit Ozempic pens being sold in the United States and announced that it was working with the FDA to curb fake treatments.³

“It’s a historic day for Johnston County,” said Butch Lawter, chair, Johnston County Board of Commissioners, in the press release. “Thirty-one years ago, Novo Nordisk decided to make a new home here in Clayton. Then, in 2016, they announced a new facility right across the street - the single largest life sciences investment on state record at the time. Today, they’re breaking that record again…with a third facility, 1,000 new jobs and a vote of confidence in the partnerships we have forged in the community over the decades.”

Lawter also announced county grants to further support the expansion project.¹

References

1. Novo Nordisk announces 4.1 billion USD investment to expand US manufacturing capacity. Novo Nordisk. June 24, 2024. Accessed June 25, 2024. https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=168528#

2. Novo Nordisk announces $6B investment in Ozempic, Wegovy amid shortages. ABC News. May 2, 2024. Accessed June 25, 2024. https://abcnews.go.com/GMA/Wellness/novo-nordisk-announces-6b-investment-ozempic-wegovy-amid/story?id=109869113

3. Novo Nordisk warns of counterfeit Ozempic® (semaglutide injection) pen found in US. Novo Nordisk. June 15, 2023. Accessed June 25, 2024. https://www.novonordisk-us.com/media/news-archive/news-details.html?id=166119