Novo Nordisk Partners With South Africa-Based Aspen To Supply Insulin For African Countries

Novo Nordisk A/S NVO announced a new partnership with Aspen Pharmacare to establish human insulin production in South Africa.

Aspen Pharmacare will manufacture human insulin in South Africa, specifically for export to African nations, through a cost-effective government tender system. 

Under this contract, Novo expects the production of 16 million insulin vials next year, equivalent to the yearly consumption of 1.1 million people. 

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By 2026, this number will increase to 4.1 million people living with type 1 and type 2 diabetes across Africa.

Currently, Novo reaches 500,000 people with diabetes in sub-Saharan Africa. 

By 2030, over 60 million individuals worldwide who rely on insulin for their diabetes management are projected to face inadequate access to this essential medication. 

This issue will particularly impact those in low- to middle-income nations, notably the 24 million adults grappling with diabetes in Africa. Projections suggest that this number could surge to 55 million by 2045.

Novo disclosed that the insulin produced by Aspen will be supplied to health authorities and non-governmental organizations through a tender system with a guaranteed maximum price of $3 per vial. 

Detailed financial terms of the contract were not provided.

Recently, the FDA issued a report detailing quality control lapses at Novo Nordisk's Clayton, North Carolina plant, a major site for the company's production of its active pharmaceutical ingredients, including semaglutide, which is used in its hugely popular weight-loss drug Wegovy and type 2 diabetes drug Ozempic.

Price Action: NVO shares are down 0.18% at $186.28 during the premarket session on the last check Tuesday.