Novo Nordisk announces €2.1 billion commitment to France

Novo Nordisk has announced a substantial investment of €2.1 billion to expand its production facility in Chartres, located to the south-west of Paris, in response to the increasing global demand for anti-diabetes and anti-obesity treatments. This move is aligned with French President Emmanuel Macron’s commitment to “reindustrialize” France. Novo Nordisk’s significant investment follows a €1.5 billion infusion by Pfizer into the French pharmaceutical sector earlier in May.

The surge in market capitalization has positioned Novo Nordisk as the most valuable company in Europe, primarily attributed to robust sales of its Ozempic and Wegovy treatments. Despite this success, the company has grappled with meeting the escalating demand for these drugs, both of which rely on GLP-1 analogues—a medication that enhances the secretion of insulin by increasing intestinal hormone levels.

The existing Novo Nordisk production site in Chartres, established in 1961 and currently employing 1,600 individuals, is set to undergo a transformative expansion through the new investment. This substantial injection of funds will lead to the doubling of the site’s size, the creation of over 500 jobs, and the implementation of continuous production operations once the expanded facilities are operational. The project, initiated with ongoing construction, is slated for completion in 2028.

President Macron, accompanied by the Ministers of Health, Aurélien Rousseau, and Industry, Roland Lescure, visited the site to underscore the strategic importance of the investment. Macron’s broader vision for relocalizing medicine production gained traction in June as a response to structural shortages exacerbated by the Covid crisis, particularly in antibiotics and paracetamol.

Novo Nordisk’s global investment in 2023 amounts to €10 billion, covering its production facilities worldwide, including the pivotal Chartres factory. This facility, a key player in providing treatments for over 10 million diabetics globally every day, highlights the company’s commitment to addressing the increasing health challenges associated with diabetes and obesity.

Novo Nordisk’s Ozempic, an injectable anti-diabetic treatment, gained notoriety on social media for its perceived slimming properties, although it is not officially approved for such use. Wegovy, featuring the same active ingredient as Ozempic but in a different dose, has received approval from US regulators for obesity treatment and is also available in several European countries. Novo Nordisk aims to secure certification for Wegovy in France by 2024.

The prevalence of obesity, a significant factor leading to diabetes, is escalating, with projections from the World Obesity Federation indicating that one in four individuals could be classified as obese by 2035. Professor Karine Clément, a nutrition expert, emphasizes that obesity evolves into a chronic illness with resistance to weight loss over time, challenging conventional beliefs centered on diet and exercise alone.

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