Catalent to produce Novo’s Wegovy injection pens in Indiana
Catalent, one of the world’s largest contract manufacturers, has secured a contract to produce injection pens for Novo Nordisk’s weight-loss drug Wegovy, according to two sources familiar with the matter.
The sources, who declined to be named because the information is confidential, told Reuters that Catalent’s plant in Bloomington, Indiana, will be part of the expanded supply agreement between Novo and Catalent.
What is Wegovy?
Wegovy is a new class of highly effective weight-loss drugs that are used alongside changes to diet and exercise. It leads to an average weight loss of around 15%, according to Novo.
Novo launched Wegovy in June 2021 and has been facing strong demand for its product, especially in the United States, where more than 40% of the population is obese. However, Novo has struggled to keep up with demand even as it has added production capacity.
Novo’s CEO Lars Fruergaard Jorgensen said at a Reuters Newsmaker event on Friday that the company hoped to have a third external facility filling and finishing the Wegovy injection pens by 2024. The first facility is Catalent’s factory in Brussels. Reuters reported this week that the second facility is Thermo Fisher’s factory in Greenville, North Carolina.
Jorgensen also said he was confident that Catalent would resolve its quality issues at its Brussels plant, which have led to repeated breaches of U.S. sterile safety rules and staff failures to perform required quality checks.
Catalent made a huge windfall during the COVID-19 pandemic as it was contracted to help make vaccines by several companies. However, the company faces a range of problems, such as falling COVID-vaccine revenue and rising costs due to corrective actions at three plants. Its stock has fallen about 57% since late August 2022.
Catalent is also under pressure from activist investor Elliott, which was reported last month to have taken a stake in the company.
Source: Conversation with Bing, 12/21/2023
(1) Exclusive-Catalent’s Indiana Plant to Make Novo’s Wegovy Weight-Loss …. https://www.usnews.com/news/us/articles/2023-08-25/exclusive-catalents-indiana-plant-to-make-novos-wegovy-weight-loss-drug-sources.
(2) Exclusive-Catalent’s Indiana plant to make Novo’s Wegovy weight-loss …. https://www.aol.com/exclusive-catalents-indiana-plant-novos-145152411.html.
(3) EXCLUSIVE-Catalent’s Indiana plant to make Novo’s Wegovy weight-loss …. https://www.nasdaq.com/articles/exclusive-catalents-indiana-plant-to-make-novos-wegovy-weight-loss-drug-sources.
(4) Exclusive-Catalent’s Indiana plant to make Novo’s Wegovy weight-loss …. https://www.investing.com/news/stock-market-news/exclusivecatalents-indiana-plant-to-make-novos-wegovy-weightloss-drugsources-3161544.
(5) Catalent’s Indiana plant to make Novo’s Wegovy weight-loss drug. https://www.reutersagency.com/en/reutersbest/article/catalents-indiana-plant-to-make-novos-wegovy-weight-loss-drug/.