The investment map of Lilly and Novo Nordisk to boost the production of drugs against obesity

The investment map of Lilly and Novo Nordisk to boost the production of drugs against obesity

2024-10-31 15:07:00

They are the talk of the town, the new drugs against obesity and diabetes. Wegovy, Ozempic, Mounjaro… these GLP-1 analogues which affect satiety, show spectacular results in weight loss. To the point of seeing their demand jump and putting pressure on supply.

To meet demand, the two laboratories have increased their investment announcements. They focused on two essential stages: the manufacturing of active ingredients and the filling and packaging operations (in the form of self-injectable pens). These projects will be carried out over the coming years. While the pharmaceutical industry tends to subcontract, Lilly and Novo Nordisk have chosen to internalize the production of these drugs as much as possible. And the two laboratories favor their country of origin, Denmark for Novo Nordisk and the United States for Lilly.

Discover in our interactive map the major investment announcements in the production of new drugs against diabetes and obesity.

Novo Nordisk: a massive investment in Europe and a takeover that gets people talking

The Danish laboratory has signed an extraordinary industrial investment in France in pharma, injecting more than 2 billion euros into its Chartres site. Novo Nordisk has also strengthened its Danish roots by strengthening its active ingredient production sites. The Koge and Kalundborg factories will change size. Novo Nordisk is not forgetting the strategic American market, by planning to build a new facility in Clayton, North Carolina, dedicated to filling. But the investment that will undoubtedly have caused the most talk is the purchase of the American CDMO Catalent. A not ordinary operation in the pharmaceutical industry, the acquisition of a subcontracting giant and three of its sites, which will however still have to pass the validation stage by the American Agency responsible for enforcing the law to competition.

Lilly: investment records on American soil

Lilly has made the United States the heart of its global production. The laboratory has announced several times to strengthen investment on its Lebanon site, not yet in service. Europe is also benefiting from the dynamic. In Germany, Lilly will launch a new factory, the result of an investment of 2.5 billion euros. In Ireland, its Kinsale facility will benefit from a budget of $800 million. If the amount is more modest, Lilly’s Alsatian site in Fegersheim will contribute to increasing the overall offer thanks to an investment of €160 million.

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**Interview with⁢ Dr. Emily⁤ Robinson,⁣ Pharmaceutical Industry Expert and Analyst**

**Editor:** Thank you for joining us today, Dr. Robinson. With⁣ the recent announcements of significant investments⁣ by Novo Nordisk⁢ and Lilly in the production of GLP-1 analogues like Wegovy and⁣ Ozempic, how do you see these developments impacting‍ the obesity and diabetes treatment landscape?

**Dr. Robinson:** Thank‌ you⁤ for having me! The surge in⁣ investments from these companies signifies a pivotal moment⁢ in the fight against obesity and diabetes. These GLP-1 analogues have shown incredible⁢ results⁢ in⁢ weight ‌loss ‍and‍ blood sugar control,⁤ which could transform treatment protocols. By⁤ building​ more manufacturing facilities and increasing⁤ production capabilities, both companies are ⁢responding to the ⁤high⁢ demand ⁣while‌ also⁤ ensuring that they maintain ⁢quality ⁤and accessibility ​for patients.

**Editor:** Novo Nordisk’s investment of over 2 ​billion ⁢euros ⁤in France⁣ and its acquisition of ⁤Catalent​ has certainly caught attention. What does this indicate about ​the company’s strategy ​moving forward?

**Dr.⁣ Robinson:** It’s quite a bold move⁤ for Novo Nordisk.‌ By investing heavily in their European‍ manufacturing capabilities and ⁣acquiring Catalent, ​they’re ⁣not‌ only enhancing ⁣their production capacity but also vertically integrating ‍their​ supply ‌chain. This strategy⁢ allows them to exert ​more control‍ over the manufacturing ⁤process and ensure that they can meet market demand promptly. Additionally, expanding operations in France and strengthening their presence in the U.S. reflects their commitment to‍ being at the forefront of diabetes⁤ and⁤ obesity treatment on a global scale.

**Editor:** Lilly has also made significant strides, focusing on‌ its U.S. facilities⁢ with substantial investments like the 2.5 billion ​euros in Germany. How does this reflect on the company’s long-term vision?

**Dr. Robinson:** Lilly’s ⁢focus ⁣on the U.S. as a central hub for⁣ production shows a clear strategic direction. The substantial investments in their new factory‌ in Germany and expansions in ‍Ireland⁤ indicate that they are not only preparing for current demand but also anticipating future growth in the obesity treatment market. This could position Lilly ⁤as a leading⁣ player‍ in providing essential therapies, especially as public health challenges related to obesity and diabetes⁤ continue to grow globally.

**Editor:** Lastly, with ⁢increasing demand⁢ and investments in the GLP-1 market, what challenges do you foresee ⁤for these companies‌ moving forward?

**Dr. ⁣Robinson:** One of the main challenges will be scalability while maintaining quality ⁢standards. As ​production ramps up, ensuring that ⁢they ⁤can consistently deliver safe and effective products will be crucial. Additionally, regulatory scrutiny will⁤ be‍ high, especially with acquisitions like Novo Nordisk’s Catalent ⁣purchase—competition laws ⁢will need to be navigated carefully. Furthermore, as more players enter this lucrative market, these companies ⁣will need ‌to ⁤innovate continuously to differentiate their offerings and mitigate pricing pressures.

**Editor:** Thank ⁣you, ‍Dr.‌ Robinson, for your⁢ insights. ⁤This certainly is an⁢ exciting⁣ time ‍for the pharmaceutical ‌industry, particularly in the ⁢realm of​ obesity and diabetes treatments.

**Dr. Robinson:** Thank you! It’s a pleasure to discuss⁣ these developments, and⁤ I’m looking forward to seeing how things ⁢evolve in ⁤the near future.

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