Novo Nordisk eyes 1,000-job expansion in Johnston County as sales of weight-loss drugs surge

Novo Nordisk is poised to launch a massive expansion in Johnston County — part of the Danish drugmaker’s efforts to ramp up global production to meet demand for its popular diabetes and weight-loss treatments.

The project could bring roughly 1,000 new jobs and an investment of more than $1.5 billion to the county, people familiar with the company’s plans told WRAL News on Tuesday. An announcement about the expansion could come as early as Monday, according to the people, who spoke on the condition of anonymity because they weren’t authorized to discuss the company’s plans.

Novo Nordisk has long manufactured and packaged treatments for diabetes and obesity at facilities in Johnston and Durham counties, where the company employs about 2,500 people. Last year, the company saw net sales surge 31% due in large part to the popularity of those drugs. It is now in the midst of an $11 million global manufacturing expansion to keep up with demand.

The company filed for a new building permit late last week for a project estimated to cost $165.2 million on land near its Johnston County operations. The application, filed with the county on Thursday, was just the latest in a string of land purchases, building-permit requests and rezonings by the company centered on an assemblage off Powhatan Road, east of the intersection of U.S. 70 and Interstate 42.

Since the beginning of last year, Novo Nordisk has snapped up more than 200 acres near its existing operations through a sequence of land deals worth at least $14.3, county property records show. Less than a year ago, Johnston commissioners agreed to rezone more than 100 acres to allow for industrial use by Novo Nordisk.

The company has also sought roughly two dozen building permits during the past two years, according to records with the Johnston County Building Inspections Department. The permit requested Thursday listed the largest associated construction cost of the bunch.

“As we assess market demand and supply chain solutions, North Carolina remains a cornerstone of our manufacturing operations,” Stacy Beard, a Novo Nordisk spokeswoman said in a statement. “We have no further details to share on any construction or permits at this time, but we will be making a public announcement about our plans in the coming weeks.”

Possible incentives

The Johnston County Board of Commissioners is scheduled to hold a special meeting Monday to discuss a proposed 12-year economic development grant for an unidentified company that wants to expand existing manufacturing facilities in the Johnston County Research and Training Zone in Clayton, an area that includes operations for Novo Nordisk and dozens of other companies. People familiar with the company’s plans told WRAL that the hearing was related to Novo Nordisk.

Later that day, Novo Nordisk is scheduled to host a press conference at its existing facility, according to language from an invitation to the event that was shared with WRAL. Companies often announce major expansions shortly after governments have agreed on incentives deals tied to expansions.

Economic development deals tend to be highly secretive; companies request anonymity as they weigh expansion plans, negotiate with state and local governments and work to line up real estate. Information about such deals are often exempt from open records laws.

Butch Lawter, the chairman of the Johnston County Board of Commissioners, didn’t respond to messages seeking comment. Chris Johnson, the county’s director of economic development, declined to identify the company.

“It’s a big, big opportunity for Johnston County,” Johnson said. “But then there’s also equal opportunity for individuals that live [in the greater region] to have good paying quality jobs.” Johnston County is part of the BioPharma Crescent, the five-county region in Eastern North Carolina that is home to a large cluster of biotech and pharmaceutical manufacturers.

More than half Johnston’s workforce travels outside the county for employment, Johnson added. “Any time that we have any expansion or any new company coming into Johnston County, it’s very exciting,” he said.

The state Department of Commerce is scheduled to hold a regular meeting of its Economic Investment Committee, which reviews and approves state incentives deals. A spokesman for the department declined to say whether the state was considering an incentives package for the drugmaker. The department typically doesn’t disclose details about incentives deals until they’re voted on.

Ramping up production

Demand for the GLP-1 class of drugs — which are effective at help people manage weight and treat diabetes but can be extremely expensive — has been outstripping supply ever since the U.S. Food and Drug Administration began approving them for a variety of conditions.

In 2023, Novo Nordisk saw a 154% increase in sales of weight-loss drugs such as Wegovy and a 29% increase in sales of diabetes medicines such as Ozempic. Last year, the company announced about $11 billion in investments aimed at expanding production around the world. The company said it seeks to operate its production facilities around the clock to keep up with demand.

“Tackling the supply problems that prevent us from meeting the growing demand for our products is a top priority for Novo Nordisk,” the company said in its 2023 annual report. “We know we must do more to ramp up capacity, and our colleagues in production are working around the clock to get additional supplies onto pharmacy shelves and into the hands of patients.”

Despite the investments, the company expects demand and supply constraints to lead to some shortages in 2024.

The expansion comes as North Carolina officials attempt to negotiate lower prices with Novo Nordisk amid broader pricing pushback from some insurers and federal lawmakers.

The list price of Ozempic, which is approved to treat Type 2 diabetes, is about $968 per package. Wegovy, which is approved for weight loss and to reduce the risk of heart problems in some adults, has a list price of about $1,349.02 per package.

Increased production —and competition — are expected to put downward pressure on prices. In May, Novo Nordisk said it reduced prices of Wegovy and Ozempic due in part to increased volume and competition.