SAO PAULO, April 7 (Reuters) - Novo Nordisk,
the producer of Ozempic, Wegovy and other medications, will
invest 6.4 billion reais ($1.09 billion) in Brazil to boost
production, it said on Monday.
The investment aims to increase manufacturing capacity at Novo
Nordisk's facility in Minas Gerais state for injectable drugs
for the treatment of obesity, diabetes and other serious chronic
diseases, the company said in a statement.
"Brazil plays a strategic (role) in realizing our purpose,"
said Novo Nordisk Chief Executive Lars Fruergaard Jorgensen,
after announcing the investment at an event in the Minas Gerais
city Montes Claros.
Brazil is among the five largest markets for Novo Nordisk,
the Danish drugmaker said. It also exports to more than 70
countries out of Brazil.
With the investment, the production capacity will have "a
considerable and significant increase," said Reinaldo Costa,
corporate vice president of Novo Nordisk's factory in Montes
Claros, without detailing numbers.
Construction work has already begun and operations in the
new facility, to measure 74,000 square meters, are expected to
start in 2028.
The factory will cater to various product formats, including
GLP-1 medicines such as semaglutide, the active ingredient in
Ozempic and Wegovy.
Novo Nordisk's investment comes as Brazilian pharmaceutical
companies are preparing to make a push into the booming GLP-1
market.
In March, Brazil's Hypera announced plans to launch a
generic version of Ozempic as soon as the drug's patent expires
in Brazil.
Costa said Novo Nordisk is not concerned about the patent
expiration, as it is a normal process in the pharmaceutical
industry.
The executive also minimized the potential effects of the global
trade war triggered by U.S. President Donald Trump.
Novo Nordisk is expanding its factory in the U.S., which is
not one of the destinations for products manufactured in Brazil,
he said.
($1 = 5.8721 reais)