Novo Nordisk will invest more than £5billion in its Danish factory to boost production of its ‘miracle’ weight-loss treatment.
The pharmaceuticals giant said it will expand its Kalundborg site as it battles to keep up with global demand for Wegovy.
The drug, which is used to tackle obesity and type-2 diabetes, has taken the world by storm and left Novo vying with luxury goods behemoth LVMH to be the most valuable company in Europe by market capitalisation. Novo’s investment in its production facility is the largest ever by a Danish private company.
Wegovy, which is available on the NHS, is an injection that users take once a week to trick the body into thinking its full. But with Novo struggling to keep up with demand, other players are trying to muscle in with their own weight-loss drugs.
Astrazeneca this week entered the race to develop a rival treatment through a £1.6billion deal with a Chinese medical group.
‘Miracle’: Novo Nordisk said it will expand its Kalundborg site as it battles to keep up with global demand for Wegovy
The group signed a licensing deal with Eccogene to create a pill, named ECC5004, which is designed to encourage the body to shed weight and lower glucose levels. Alongside treating obesity, the company said the drug could also be used to help combat type-2 diabetes and other conditions such as heart attacks and strokes.
Under the terms of the deal, the FTSE 100 firm will pay £151m to Eccogene upfront as well as up to £1.5billion in clinical and other milestones as the drug’s development progresses.
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