Last Year, Supply Shortages of Key Products Like Wegovy and Ozempic
$4.1 Billion Invested and 1,000 Jobs Created
Danish pharmaceutical company Novo Nordisk, which has led the obesity treatment drug boom, is investing $4.1 billion (approximately 5.7 trillion KRW) to expand its manufacturing plants. This is to meet the excess demand for its flagship products such as Wegovy and Ozempic.
According to major foreign media including CNBC on the 24th (local time), Novo Nordisk plans to invest $4.1 billion to expand production facilities in Clayton, North Carolina, USA, where its three manufacturing plants are located. The company stated that the new plant is expected to be completed between 2027 and 2029, and will handle packaging for medical syringes and injection pens. Additionally, it announced that 1,000 new jobs will be created on top of the 2,500 employees currently working at the three existing manufacturing plants.
The aggressive plant expansion is interpreted as being driven by the obesity treatment drug boom in the United States. Last year, there was excess demand for Wegovy and the diabetes treatment drug Ozempic in the US. According to the US Food and Drug Administration (FDA), there is especially a shortage of low-dose Wegovy supply. A company spokesperson explained that currently an average of 35,000 patients per week in the US are starting Wegovy injections, an increase from 27,000 last month. Fueled by this growing demand, Novo Nordisk, which invested $3.8 billion in expanding production facilities last year, announced plans to invest $6.8 billion this year as well.
Doug Langa, Novo Nordisk’s North America Head of Operations, said, "With this investment, we have the opportunity to serve more patients," and added, "We are particularly proud of the additional investment made in the United States." Novo Nordisk is known to have 12 manufacturing plants in Denmark, France, China, Japan, Russia, and other countries excluding the US.
Meanwhile, like Novo Nordisk, competitor Eli Lilly, which also has manufacturing facilities in North Carolina, is reportedly investing billions of dollars to increase production of obesity and diabetes treatment drugs, Zepbound and Mounjaro. On this day, Eli Lilly’s stock price closed slightly higher at $890.11 on the New York Stock Exchange. It has risen 52% so far this year.
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