Danish pharmaceutical company Novo Nordisk (NYSE:NVO) plans to invest $2.3 billion or €2.1 billion to expand its production capacity in France, as the demand for its weight loss drugs increases. The company has already started ramping up the construction work at its site in Chartres, southwest of Paris.
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This investment is expected to increase the production capacity of its diet drug, Wegovy, and its product for diabetes, Ozempic. Novo Nordisk expects that this investment will expand the site’s size by over twofold and generate over 500 new jobs.
Many pharma companies are eyeing the weight loss drug market, which is expected to balloon to $100 million by 2030. Earlier this month, the company announced an investment of $6 billion to expand its manufacturing facilities in Denmark.
Is NVO Stock a Buy?
Only two analysts have covered the stock in the past three months and both have rated NVO stock a Buy. Even as NVO stock has surged by more than 50% year-to-date, the average NVO price target of $110 implies an upside potential of 6.5% at current levels.
