Novo Nordisk To Invest $2 Bn in Production Facilities in US, Denmark
Novo Nordisk plans to invest an $2 billion US over the next five years in new production facilities in Clayton, North Carolina and MÃ¥lÃ¸v, Denmark to support production for its diabetes medicines. The final design and cost of the new production facilities will be presented for approval by the company’s board of directors in 2016. The facilities are expected to be operational during 2020.
The facilities in Clayton will produce active pharmaceutical ingredients (API) for oral semaglutide, a GLP-1 analogue formulated as a once-daily tablet for treating Type 2 diabetes and which is entering Phase III development, and a range of Novo Nordisk’s current and future GLP-1 and insulin products. The investment is estimated to create close to 700 new production and engineering jobs in Clayton where Novo Nordisk already employs more than 700 people.With the new plant in Clayton and continuous investments in its current API production plants in Kalundborg, Denmark, Novo Nordisk says it will have sufficient API capacity for diabetes products into the next decade.
Expanded several times since it went into operation in 1993, Novo Nordisk’s current plant in Clayton is one of the company’s strategic production sites responsible for formulation, filling, and packaging of diabetes care products. The plant also assembles and packages the FlexPen and FlexTouch prefilled insulin device for the US market.
Established in 1969, the Kalundborg production site is the largest in Novo Nordisk’s global manufacturing network. Housing several production plants for both diabetes and hemophilia products, the site employs more than 2,800 people. Several hundred new jobs are expected in the coming years as a result of ongoing and future investments in the plants.
“We decided to place the new API facilities in the US for strategic reasons,” adds Henrik Wulff, executive vice president and head of product supply at Novo Nordisk.”The US is by far our largest market and there are many logistical and economic advantages of having a larger part of our manufacturing in our main market. After a thorough evaluation of multiple sites and an extensive vetting process, Clayton ended up being our preferred location. We already have a large and very professional organisation there and an excellent collaboration with city, local and state leadership, and we appreciate the incentives they have secured in connection with this investment.”
Novo Nordisk also plans to establish a new production facility in MÃ¥lÃ¸v, Denmark for tableting and packaging of oral semaglutide and future oral products. The investment in MÃ¥lÃ¸v will create an estimated 100 new jobs. The facility in MÃ¥lÃ¸v currently products 250 employees and produces tablets for hormone replacement therapy. The plant is located next door to Novo Nordisk’s largest research & development campus, which employs more than 2,300 employees.
Source: Novo Nordisk