Novo Nordisk expands Danish production facilities

Almost US$100 million will be spent in Danish production sites to upgrade facilities to manufacture next generation diabetes treatment products

Novo Nordisk is fighting tooth and nail to keep its place as one of the top diabetes drug providers, producing 50% of the world’s insulin. With a patent settlement buying the company four years to grow its diabetes brand 'Victoza' before Teva Pharmaceuticals can create generics, the next move by the company focuses on increasing its own next-gen capabilities.

Predicted to be in action by 2020, Novo Nordisk plans to invest DKK 650 million (US$100 million) in upgrading and expanding facilities at its production site in Kalundborg, Denmark. The facilities in question are currently manufacturing a range of products for diabetes treatment and will be rebuilt to allow for future production of the next generation of products.

Michael Hallgren, SVP for Novo Nordisk production in Kalundborg, said: "The investments in production facilities highlight Novo Nordisk's ambition to continue strengthening its presence in Denmark and Kalundborg. Today, Novo Nordisk manufactures around half of the world's insulin in Kalundborg and we have had a presence in Kalundborg for 50 years. Since the turn of the millennium alone, Novo Nordisk has invested more than DKK 15 billion ($2.26 billion) in Kalundborg, which is a cornerstone of the company's global production network."

Novo Nordisk's production site in Kalundborg also houses production facilities for Novozymes. Established in 1969, the site today covers a total area of 1,200,000 sqm. Novo Nordisk Kalundborg employs close to 3,500 people, and the 14 factories housed on the site are a cornerstone of Novo Nordisk's global production network.

The upgrade should help Novo Nordisk further widen their portfolio, and so income sources, to prepare for 2023 when generic versions could detract from Victoza earning potential.

Efficient use of resources

At this Danish site there is also an eco-friendly money-saving initiative in force. Novo Nordisk and Novozymes are active partners of the Kalundborg Symbiosis, a resource partnership between six private companies and three public operators.

The main principle of the industrial symbiosis is that a residue or byproduct from one company becomes a resource in another company's production process. Today, 22 different types of resources are exchanged in the network, resulting in economic and environmental benefits.

Companies