Novo Nordisk (NVO.US) invests $1.2 billion in new factory in Odense, Denmark, expected to be completed in 2027

Novo Nordisk (NVO.US) will invest DKK8.5bn ($1.2bn) in a new large factory in Denmark to meet growing demand for its blockbuster drugs, the company said on Monday. The Danish biotech giant said it will build a 40,000 sq m production facility and warehouse in the suburbs of Odense, the third largest city in Denmark, about two hours' drive from Copenhagen. Novo Nordisk said the new plant, which will be designed as "modular and flexible", will be able to produce a range of products for rare diseases such as haemophilia. The company said the factory would "help meet the growing global demand for Novo Nordisk's medicines", but did not say whether it would support production of its blockbuster weight loss drugs Wegovy and Ozempic. Novo Nordisk expects the plant, which has already begun construction, to create 400 permanent jobs when it is completed in 2027. It will also employ up to 1,000 external workers during the construction process. The company acquired land and planning permission for its Odense factory earlier this year, according to reports. As part of the permitting process, Novo Nordisk submitted an environmental report that outlined plans to expand the factory in stages over 11 years. Novo Nordisk is trying to increase supply of its popular diabetes and weight loss drugs. The company recently announced plans to spend billions of dollars expanding several factories in Denmark, France and the US. In June, Novo Nordisk said it expected to invest $6.8bn in production this year, up from $3.9bn in 2023. The success of drugs such as Wegovy and Ozempic has helped Novo Nordisk become Europe's most valuable company, but has also raised concerns about Denmark's reliance on the biotech giant. Novo Nordisk has had a significant impact on the region, driving economic growth and employment, but has also presented challenges for other businesses — its hiring spree and generous pay packages have led to labour shortages for other companies.