Novo Nordisk A/S NVO plans to invest more than DKK 42 billion ($6 billion) starting in 2023 to expand existing manufacturing facilities in Kalundborg, Denmark, as the company seeks to meet the increasing demand for its popular weight-loss products and other drugs.
The investment will create additional capacity across the entire global value chain from manufacturing active pharmaceutical ingredients (API) to packaging, with the vast majority invested in API capacity.
The investment, which includes GLP-1 products, will increase Novo Nordisk's ability to meet future market demands.
The new API facility will have a footprint of 170,000 m2. The construction projects will be finalized gradually from the end of 2025 through 2029.
The projects are expected to create 800 new jobs in the facilities when construction is completed and fully equipped.
During the construction phase, up to 3,000 external employees will be employed.
Over the past two years, Novo Nordisk has announced DKK 40 billion production investments in Denmark.
In an interview with Reuters, Novo Nordisk's CEO Lars Fruergaard Jorgensen said the company wants to buy more companies with drugs in the early- to mid-stages of development through "bolt-on" deals of up to a few billion dollars.
"So diabetes, obesity, cardiovascular disease, the whole cardiometabolic space, but also in the rare blood disorders, hemophilia, sickle cell, we believe that we have a stronghold there," Jorgensen said in an interview.
Novo's M&A strategy focuses on disease or therapeutic areas where the company has a "deep biological understanding" and also on "a set of technologies" the company wants to leverage, he added. He cited "protein engineering," saying the company had done that for years.
Price Action: NVO shares are up 0.05% at $100.08 during the premarket session on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
