Novo Nordisk (NYSE:NVO) is investing $4.1 billion to expand its US manufacturing capability, focusing on its high-demand weight-loss drugs, Ozempic and Wegovy.
The investment will fund a new 1.4 million square foot plant near Raleigh, North Carolina, doubling the site’s size. The additional capacity is expected to be operational between 2027 and 2029.
Shortages have affected Novo Nordisk (NYSE:NVO)’s Wegovy and Ozempic, as well as Eli Lilly and Co's (NYSE:LLY) Zepbound and Mounjaro, according to the US Food and Drug Administration.
The new North Carolina facility will also create 1,000 jobs, adding to the 2,500 employees already in the area.
Eli Lilly has also been expanding, with plans to spend $5.3 billion on a new manufacturing site in Indiana for its weight loss drugs and $18 billion since 2020 on manufacturing operations across the US and Europe.
This expansion comes as Novo Nordisk (NYSE:NVO) and Eli Lilly compete in the growing market for GLP-1 diabetes and weight loss drugs, which are anticipated to generate $42 billion in sales this year and potentially $130 billion by 2030.