One Is Not Enough For Famed Weight Loss Drug: Novo Nordisk Taps Thermo Fisher To Ramp Up Wegovy Production

Novo Nordisk A/S NVO has reportedly enlisted the services of Thermo Fisher Scientific Inc TMO as its second contract manufacturer for its highly sought-after weight-loss drug, Wegovy.

Thermo Fisher has been tasked with filling Wegovy injection pens at its production facility in Greenville, North Carolina.

In May, Novo Nordisk's Chief Financial Officer, Karsten Munk Knudsen, shared with Reuters that the company had secured a second contract manufacturer in the U.S. 

However, until now, the identity of this additional manufacturer had not been publicly disclosed.

While Novo Nordisk's spokesperson declined to provide commentary on the matter, the pharmaceutical giant's move to secure a second contract manufacturer underscores its eagerness to ramp up the production of Wegovy

The drug's immense popularity in the United States has prompted the company to meet the soaring demand proactively.

This decision comes after production challenges encountered at Novo Nordisk's factory in Brussels, Belgium, managed by its first contract manufacturer, Catalent Inc CTLT

Catalent's facility has faced repeated violations of U.S. sterile-safety regulations in recent years, and compliance issues have been observed regarding mandatory quality checks.

Wegovy, introduced to the U.S. market in June 2021, represents a pioneering entry in a new category of highly effective weight-loss drugs. It has demonstrated the potential to lead to an average weight reduction of approximately 15% in conjunction with dietary and exercise modifications.

Knudsen had previously disclosed plans to initiate production at a third facility later in the current year. He expressed the hope of further expanding the network of manufacturing sites. However, the identity of the third partner remains undisclosed.

Price Action: NVO stock is up 1.54% at $187.85, and TMO shares are up 3.65% at $546 on the last check Wednesday.

Market News and Data brought to you by Benzinga APIs
Posted In: BiotechLarge CapNewsHealth CareContractsGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!