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Novo Nordisk to invest $1.09 billion to boost Ozempic, Wegovy production in Brazil
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Novo Nordisk to invest $1.09 billion to boost Ozempic, Wegovy production in Brazil
Apr 7, 2025 9:33 AM

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)

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