Novo Nordisk To Inject Around DKK16B in API Facility to Boost Late-Phase Product Portfolio

Novo Nordisk A/S NVO disclosed its plan to invest DKK 15.9 billion in 2023 to expand its existing Active Pharmaceutical Ingredient (API) production facility in Denmark.

The investment aims to create additional production capacity and aid the development of its future clinical late-phase product portfolio.

The construction of the new multi-product facility, spanning around 65,000m, is underway and expected to start producing API by early 2029.

Upon completion, the facility is expected to create 340 new jobs.

“This important investment will ensure the continuous development of our late-phase pipeline into deliveries of important medicines for treatments to patients worldwide. The investment announced today confirms Hillerød and Denmark as cornerstones in our global footprint, and I would like to take this opportunity to thank the Danish Government and Parliament for their continued focus on ensuring good and stable infrastructure and supplies – allowing us to continue to expand our production capacity to the benefit of patients living with serious chronic diseases,” said Henrik Wulff, executive vice president of Product Supply, Quality & IT.

Last month, Novo Nordisk reported Q1 FY23 sales of DKK 53.37 billion, up 27% Y/Y (+25% on constant currency), and EPS of DKK 8.78.

Also Read: British Government Launches Pilot Program For Weight-Loss Shots To Tackle Shortage Of Novo Nordisk’s Wegovy

Price Action: NVO shares are trading higher by 1.44% at $160.32 on the last check Monday.