Novo Nordisk has announced a significant investment of 6.4 billion Brazilian reais ($1.09 billion) to expand its manufacturing facility in Montes Claros, Brazil, as part of the company's global strategy to increase production capacity for its highly demanded glucagon-like peptide 1 receptor agonist (GLP-1RA) medications.
The expansion, described as one of the largest pharmaceutical investments in Brazil's history, will enhance the site with new aseptic production processes, a warehouse, and a quality control laboratory. Construction has already begun, with operations expected to commence in 2028.
"With this expansion of the Montes Claros site, we are strengthening our global production capacity, which will enable us to meet both current and future demand for innovative medicines worldwide," said Henrik Wulff, Novo Nordisk's Executive Vice President of Chemistry, Manufacturing, Control & Product Supply.
Strategic Expansion Amid Growing Demand
The Montes Claros facility, already the largest insulin factory in Latin America, will now expand its capabilities to include production of various product formats, including the company's blockbuster GLP-1RA medications. These include Ozempic and Wegovy, both containing the active ingredient semaglutide, which have seen unprecedented demand for type 2 diabetes management and weight loss treatment, respectively.
This manufacturing expansion comes at a critical time for Novo Nordisk, which has struggled to meet global demand for its semaglutide products. The medication was only recently removed from the U.S. Food and Drug Administration's shortage list after the company assured regulators it could now meet demand.
Brazil represents one of Novo Nordisk's five largest markets globally. According to GlobalData, the GLP-1RA market in Brazil alone was estimated to be worth $581 million in 2024, highlighting the strategic importance of this investment.
Economic and Employment Impact
The expansion will create approximately 600 permanent jobs, adding to the 2,000 staff already employed by Novo Nordisk in Brazil, which includes workers at its administrative office in São Paulo. During the construction phase, up to 2,000 external employees will be working on site.
Reinaldo Costa, Corporate Vice President of Novo Nordisk Production Montes Claros, emphasized the significance of this development: "This announcement represents a historic milestone for Novo Nordisk in Brazil and reinforces our commitment to innovation and excellence in the country as we continue to invest in this strategic production site."
Competitive Landscape and Patent Considerations
Novo Nordisk's manufacturing push comes amid looming competitive pressures. Hypera, Brazil's largest pharmaceutical company by market capitalization, has already announced plans to launch a generic version of Ozempic when its patent expires in 2026.
This Brazilian investment is part of Novo Nordisk's broader global manufacturing strategy, which includes billions in facility expansions worldwide and the recent $16.5 billion acquisition of contract development and manufacturing organization (CDMO) Catalent in December 2023.
Sustainability Focus
The expanded facility will incorporate significant sustainability features, targeting Leadership in Energy and Environmental Design (LEED) certification. The design includes:
- 100% of power supply from solar photovoltaics
- Water conservation strategies including rainwater harvesting and reuse for production
- Low-carbon construction materials where possible
Global Manufacturing Strategy
While the expanded Brazilian facility will contribute to Novo Nordisk's global supply chain, reports indicate that products manufactured at this site will not be destined for the U.S. market. This comes amid ongoing trade tensions and potential pharmaceutical tariffs between the U.S. and other countries.
Novo Nordisk has operated in Brazil since 1990, and this investment reinforces the country's importance in the company's long-term manufacturing strategy as it works to secure sufficient production capacity for its in-demand GLP-1 medications.
