A subsidiary of Danish drugmaker Novo Nordisk is investing 1.5 billion Danish kroner, or about $220 million, to build a new factory at an existing site in Køge, a small seaside town about 25 miles southwest of Copenhagen.
The facility will span some 8,000 square meters and support drug production and storage as well as contain office and laboratory space. It’s being built on land Novo’s Pharmatech unit purchased in March 2023.
“This is the largest investment in Novo Nordisk Pharmatech’s 75-year history,” said Ulla Grove Krogsgaard Thomsen, the unit’s head, in an Aug. 16 statement. “We are in a period of growth. In accordance with our growth strategy, we are expanding our production to ensure an even more robust and reliable delivery of our products.”
Specifically, the facility will make the raw materials that go into Novo’s medicines for chronic diseases, like those it sells for diabetes and obesity. The company has been investing billions of dollars to expand its manufacturing base as surging demand for its drugs Ozempic and Wegovy has outstripped supply. Most recently, Novo said it would spend $4.1 billion to construct a new factory in North Carolina.
In investing huge sums into manufacturing, Novo is keeping in step with rival Eli Lilly, which is also expanding production of its obesity and diabetes drugs Zepbound and Mounjaro as fast as it can.
The Køge site is a relatively small addition, creating around 50 new jobs. The facility is expected to be ready for production by 2027, Novo Nordisk Pharmatech said.
