The GLP-1 weight loss drug, which is in a race for development, is also highly competitive in terms of production capacity.
Recently, Lilly held a groundbreaking ceremony for a new factory in Frankfurt, Germany. The factory is mainly used for producing injectable drugs and pens. It is expected to start construction this summer and officially operate in 2027, with shipments to the world. It is reported that Lilly plans to invest $2.5 billion in the factory to address drug shortages, including the GLP-1 drug Zepbound.
Zepbound is a weight loss version of Lilly's GLP-1 drug Tirzepatide, which was approved for weight loss in the United States on November 8, 2023. The 2023 financial report shows that within less than two months of approval, Zepbound's sales reached $176 million.
Due to the efficacy in treating diabetes, obesity and other aspects, GLP-1 drugs are in short supply globally. In the 2023 financial report, Lilly also mentioned the supply and demand of GLP-1 weight-loss drugs: the company continues to implement the production expansion plan, but considering the strong demand and the time required for full production, it is expected that the demand for diabetes and weight loss drugs will exceed the supply in 2024.
The FDA drug shortage database shows limited supply of Zepbound
At present, the drug shortage database on the official website of the US Food and Drug Administration also includes Tirzepatide of Lilly, Zepbound of 5mg and 12.5mg, and Mounjaro of diabetes of 10mg, 7.5mg, 12.5mg and 15mg. In China, the diabetes indications of Tirzepatide have already been declared for listing, waiting for approval.
In terms of production capacity, Lilly announced at the end of 2023 that it would invest $450 million in a factory in North Carolina, USA, to provide additional drug filling, equipment assembly, and packaging capabilities for products including GLP-1 drugs. Lilly executives have also publicly stated that there will be a significant increase in production in the second half of 2024, and the production of GLP-1 drugs with saleable doses will increase by at least 1.5 times compared to the same period in 2023.
Novo Nordisk, also known as the "GLP-1 duo" alongside Lilly, is increasing its production capacity for GLP-1 drugs. Novo Nordisk executives have publicly stated that in 2023 alone, the company announced a total investment of over 75 billion Danish kroner to expand its production base worldwide. The construction of these projects is currently underway, with efforts to operate existing facilities 24 hours a day, 7 days a week.
Novo Nordisk's Smeglutide has already been approved for use in diabetes in China, and the weight reduction version is expected to be approved in China this year, when the product demand may further expand. Regarding how to ensure the production capacity of related products, Novo Nordisk China recently stated in a written interview with Paper that all production plants of the company are making every effort to ensure the supply of products to existing patients. From 2022 to 2023, the company has invested over 5 billion US dollars in all related production plants to expand production capacity and respond to the growing market demand.
Novo Nordisk China stressed that from 2023 to 2024, it will continue to increase the supply of Novotel (the trade name of Smeglutide for diabetes indications) in the Chinese market, so as to better help Chinese patients with type 2 diabetes.
On March 19th, Novo Nordisk China announced an investment of approximately 4 billion RMB in Tianjin for the expansion project of sterile preparations, and held the groundbreaking ceremony for the expansion project. Regarding whether the base is involved in the production of GLP-1 drugs, Novo Nordisk China told reporters that the Tianjin production plant is one of Novo Nordisk's global strategic production bases, where products are filled, assembled, and produced. We do not disclose the specific production location of the products.