Novo Nordisk plans to invest $745 million (5.4 billion Danish kroner) to expand its existing facilities in Bagsværd, the pharma giant said in a statement Tuesday.
Novo, the world's leading insulin maker, said the project is expected to be finalized in 2024 and will create around 160 new jobs.
The investment will boost capacity in research and development for manufacturing active pharmaceutical ingredients (API) to supply global clinical trials, added the company. It also plans to construct a new plant, set to be located in the extension of the existing facilities.
These expansions aim to provide capacity for developing Novo Nordisk’s future oral and injectable product portfolio.
“Increasing our API capacity in R&D will be a key enabler in bringing new innovations to the market and meet the future demand of our patients,” said Jesper Boving, senior vice president, of CMC Development, Novo Nordisk.
Novo Nordisk currently produces API at two facilities in Denmark and one in Clayton in the US, Reuters reported, citing a company spokesperson.
According to Forbes, the company has a market capitalization of $193.1 billion and has $7.6 billion in annual profits. Employing 47,792 workers in 80 countries, the Bagsvaerd-headquartered healthcare company ranked number 333 on Forbes' 18th annual ranking of the world’s 2,000 largest public companies “Global 2000” list.
Earlier this month, the Danish company raised its full-year earnings outlook after reporting a better-than-expected profit in the third quarter on strong sales of diabetes treatment Ozempic, lifting its shares to a three-month high. The company predicted 2022 operating profit growth at constant exchange rates of 13-16%, up from a previous target range of 11-15%. Third-quarter operating profit rose by almost a third to $2.7 billion.
Novo Nordisk was founded in 1925 in Denmark. The healthcare company is engaged in the research, development, manufacture, and marketing of pharmaceutical products. It operates through two segments - Diabetes & Obesity Care, and Biopharmaceuticals. The Diabetes & Obesity Care segment covers products for insulin; GLP-1 and related delivery systems; oral antidiabetic products; and obesity. The Biopharmaceuticals segment offers products for hemophilia; growth hormone therapy; and hormone replacement therapy.
