Healthcare firm Novo Nordisk has unveiled plans to invest around $2bn to develop new production facilities in the US and Denmark, in a bid to meet the increasing demand for its diabetes medicines across the globe.
The company will invest the amount over the next five years to build the new facilities in Clayton of the US and Måløv of Denmark.
Clayton facilities will be involved in the production of active pharmaceutical ingredients (API) for both oral semaglutide and a range of the firm’s current and future GLP-1 and insulin products.
The investment in Clayton is expected to create around 700 new production and engineering jobs, the firm already employs about 700 people.
Novo Nordisk executive vice-president and product supply head Henrik Wulff said: "We decided to place the new API facilities in the US for strategic reasons.
"The US is by far our largest market and there are many logistical and economic advantages of having a larger part of our manufacturing in our main market."
Novo Nordisk will develop new production facility in Måløv, which will involve in tableting and packaging of oral semaglutide and future oral products. The investment is expected to create around 100 new jobs.
In 2016, the firm’s board of directors will present the final design and cost of the new production facilities, which are expected to start operations by 2020.
The firm’s current facility in Clayton of North Carolina is involved in the formulation, filling and packaging of diabetes care products. It also assembles and packages the FlexPen and FlexTouch prefilled insulin device for the US market.
The Kalundborg production site in Denmark includes several production plants, producing both diabetes and haemophilia products.
Image: Novo Nordisk Danish headquarters in Bagsværd. Photo: courtesy of Novo Nordisk A/S.