04:15 PM EDT, 04/07/2025 (MT Newswires) -- Novo Nordisk ( NVO ) will invest 6.4 billion reais ($1.09 billion) to expand its manufacturing capacity in Brazil, Reuters reported Monday, citing CEO Lars Fruergaard Jorgensen.

The investment will support increased production of treatments for obesity, diabetes, and other chronic diseases at the company's facility in Minas Gerais. Construction is underway on a new 74,000-square-meter facility in Montes Claros, with operations expected to begin in 2028.

The site will produce various formulations, including GLP-1 drugs such as semaglutide, the active ingredient in Ozempic and Wegovy.

Patent expiration is not seen as a major issue, according to Reinaldo Costa, corporate vice president of the Montes Claros facility. The company is also expanding a separate manufacturing site in the US, which does not source products from Brazil, according to the news outlet.

Novo Nordisk ( NVO ) did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)