Novo Nordisk A/S, the maker of the popular weight-loss medication Ozempic, is set to invest €2.1 billion ($2.3 billion) in expanding its production facilities in France. The Danish pharmaceutical company is grappling with supply challenges due to soaring demand for its blockbuster weight-loss medicines, particularly Wegovy and Ozempic, prompting this substantial investment.
France’s President Emmanuel Macron is expected to officially announce the investment at Novo’s site in Chartres, southwest of Paris. While Macron’s office confirmed the creation of over 500 jobs through this investment, there was no immediate response regarding whether the sum includes public subsidies.
Novo Nordisk’s move is a response to the surging demand for its weight-loss drugs, endorsed by high-profile figures such as Elon Musk, leading to a remarkable increase in the company’s stock value by approximately 50% this year. The investment aims to bolster the production of Wegovy and Ozempic, along with their injection pens.
Both drugs, containing the active ingredient semaglutide that mimics a gut hormone’s action, are facing shortages. Wegovy, known for aiding users in shedding about 15% of their body weight on average, has also demonstrated recent studies indicating heart benefits. However, its availability in France is currently limited to morbidly obese patients with additional risk factors like heart disease or sleep apnea.
The investment in Novo Nordisk’s French production site aligns with Macron’s efforts to reverse the country’s industrial decline. Macron has previously outlined economic measures, including expanded tax credits for investment and streamlined procedures for opening new factories, to boost industrial growth.
This move may further enhance France’s appeal as an investment destination, especially in the wake of a recent German court decision impacting industrial projects. Novo Nordisk’s investment in France comes as part of the company’s broader strategy to expand its manufacturing capacity globally, with a recent announcement of a $6 billion investment in a manufacturing facility in Denmark.
This latest investment follows a €130 million commitment made by Novo Nordisk in January to expand production capacity at the Chartres site, which currently employs 1,450 people and produces insulin for over eight million patients worldwide.
