Novo Nordisk Pharmatech is building a new facility in Denmark to expand capacity for raw material production due to “significantly higher demand” from its parent company.
“This is the largest investment in Novo Nordisk Pharmatech’s 75-year history. We are in a period of growth,” said Ulla Thomsen, CEO of the subsidiary, in a Friday press release.
The new 8,000 square-meter building will make and supply Novo Nordisk with raw materials for its chronic disease therapies. But the announcement did not provide any further details on which raw materials or for what chronic diseases.
The building will cost 1.5 billion Danish kroner ($220 million) and will be completed in 2027, adding 50 new jobs. The facility will be located in Køge, a town south of Copenhagen. The company bought the 47,000 square-meter site in March 2023.
Novo Nordisk has previously touted it keeps all of its raw material production for its blockbuster GLP-1 drugs Wegovy and Ozempic inside company walls, dubbing its API as its “core technology.” The Danish pharma has a total of 16 manufacturing sites for all its drugs, five of which (three in Denmark, two in the US) are used to manufacture APIs.
Due to consistently unwavering demand, Novo Nordisk has been very focused on expanding its production for its GLP-1 drugs and has set aside $6.5 billion to ramp up its manufacturing this year.
API manufacturer Pharmatech was originally named FeF Chemicals before being bought by Novo Nordisk in 1986.