Diabetes and obesity drug maker Novo Nordisk will invest "significantly" in its supply chain capacity to avoid future supply shortages, the company's CEO Lars Jorgensen told its annual general meeting on Thursday.
Novo Nordisk's new obesity drug, Wegovy, faced supply constraints when it was launched in the United States in June last year, leading to shortages.
The issue was exacerbated when a contract manufacturer in December halted deliveries and manufacturing temporarily after issues relating to good manufacturing practice.
"We are going to invest significantly in building resilience in our supply chain, so we are set up to grab the opportunities we have in the future," Jorgensen said, without providing further details.
"We'll have to spend some of our cash flow that we would otherwise return to our shareholders on building that capacity," he added.
Novo expects to be able to meet demand for Wegovy in the second half of this year.
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