Ozempic Maker Novo Nordisk Invests Over $1 Billion In New Denmark Production Facility, Closer To Add 3 More From Catalent

On Monday, Danish pharmaceutical firm Novo Nordisk A/S NVO announced plans to invest approximately $1.20 billion (8.5 billion Danish kroner) to establish a new production facility in Odense, Denmark.

The investment marks the first time in this century that Novo Nordisk breaks ground in Denmark by establishing a new production site. The new site will feature a finished production facility and warehouse of over 40,000 m2.

Also Read: Novo Nordisk's Ozempic Potentially Linked To Rare Vision Loss Risk, But Absolute Risk Is Low: Study

Designed to be modular and flexible, it will accommodate multiple product types within rare diseases, such as hemophilia. Construction work has commenced and is scheduled to be completed in 2027.

The investment is expected to create 400 permanent jobs upon completion of the facilities. Up to 1,000 external employees will be working on-site during the construction process.

On Friday, Novo Holdings announced it had fulfilled all regulatory requirements to finalize its acquisition of Catalent Inc. CTLT.

The closure comes amid a coalition of unions, consumer groups, and public interest organizations voicing strong opposition to Novo Holdings' proposed $16.5 billion acquisition of Catalent.

Last week, the European Commission approved Novo Holdings' acquisition of Catalent and Novo Nordisk's subsequent acquisition of three manufacturing sites from Novo Holdings.

The deal for the three sites is expected to close in the coming days. Once completed, the acquisition will affect Novo Nordisk's financial outlook, including:

2024 Impact: A slight negative effect on operating profit growth and a reduction in free cash flow by $11.7 billion, the acquisition's cost. The ongoing 20 billion Danish krone share buyback program remains unaffected.

2025 Impact: Operating profit growth is projected to face a moderate negative impact, with interest payments from debt financing affecting net financial items. Novo Nordisk does not plan to launch a share buyback program in 2025.

Price Action: At last check on Monday, NVO stock was up 0.93% at $107.94 during the premarket session.

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