'Muskeu Obesity Drug' Novo Nordisk Acquires US Factory for 22 Trillion Won to Increase Production

Europe's Largest Market Cap Company
Expands Production Facilities for Wegovy and Ozempic

Denmark-based pharmaceutical company Novo Nordisk, the manufacturer of the obesity treatment drug 'Wegovy,' is acquiring the world's largest contract development and manufacturing organization (CDMO) for $16.5 billion (approximately 22 trillion KRW) to increase production capacity.

On the 5th (local time), according to major UK media outlets, Novo Holdings, the holding company of Novo Nordisk, announced that it is set to sign an acquisition deal worth $16.5 billion with Catalent, a contract development and manufacturing company based in New Jersey, USA. Novo Holdings stated that immediately after the acquisition is completed, it will sell three production facilities owned by Catalent to Novo Nordisk for $11 billion (approximately 14.63 trillion KRW).

This acquisition deal aims to increase production capacity in response to the explosive demand for Novo Nordisk's obesity treatment drug Wegovy and diabetes treatment drug 'Ozempic.' Last November, when supply could not keep up with demand, Novo Nordisk also made an additional investment of 2.1 billion euros (approximately 3 trillion KRW) in France to expand production facilities.

Having previously outsourced production to Catalent, Novo Nordisk will now have exclusive use of three Catalent factories located in Italy, Belgium, and the United States through this deal.

Wegovy and Ozempic are representative drugs leading the rapidly growing global obesity treatment market since last year. Last year, Tesla CEO Elon Musk and actress Kim Kardashian publicly revealed their success in dieting after receiving Wegovy injections, sparking a sensational popularity. Novo Nordisk estimates that about one million Americans have taken Wegovy since its approval in the US in 2021.

Since September last year, Novo Nordisk has risen to become the largest company by market capitalization in Europe. The current market value of the company is estimated to be about $500 billion (approximately 665.25 trillion KRW).