Factories for the future

Novo Nordisk is building a new facility for the production of insulin crystals and a new factory for the production of NovoSeven®.

With transparent glass facades, the new facility at Hillerød is designed to fit into the beautiful landscape.

With the prospect of a dramatic increase in the number of people with diabetes worldwide and the expectation that the haemophilia preparation NovoSeven® in time will also be used for treating bleeding episodes in patient groups other than the currently approved indication, Novo Nordisk is currently going through a peak in investments.
The total investment for Novo Nordisk this year is estimated at DKK 3.5 billion, of which the bulk will be used in Kalundborg for a facility for the production of insulin crystals and in Hillerød for a NovoSeven® factory. With the investment in these two facilities, Novo Nordisk expects to be well prepared for the needs of the future. Both plants will be finished and expected to start production in 2004.
Net turnover has risen sharply in recent years due to strong development in underlying business. One consequence was increased investments in 2000 - about 10% of turnover compared to 8% in 1999.
As indicated in the financial statement for the first half of 2001, Novo Nordisk also expects to realise a relatively high investment level in 2001 - estimated at about DKK 3.5 billion. Also for the next couple of years the investment level is expected to be elevated due to the positive underlying development in the business and the expected commercial potential of late stage development projects and products not yet commercialised. Even with these elevated investment levels Novo Nordisk expects to realise positive free cash flows.

Crystals for the whole world
A new facility for the production of insulin crystals is now under roof at the Kalundborg site, which supplies crystals to all of Novo Nordisk's strategic finishing plants around the world.
The new facility is the first of its kind in Novo Nordisk, with fermentation, recovery and purification designed as an integrated process. Traditionally the various steps have been carried out at several factories. Now all of the steps in the process of raw materials production will be under the same roof.
Right now workers are busy installing process equipment. Installation will be followed by a very demanding period in which the new plant has to be tested and prove that it lives up to Good Manufacturing Practice (GMP) requirements as well as the requirements of the US Food and Drug Administration (FDA).
"We supply raw materials to all the company's finishing plants for insulin products and insulin analogue products. Once we can use the new factory, which features top technology from start to finish, we will be able to upscale raw materials production to meet the needs of the future," says Jesper Bøving, site manager in Kalundborg.

NovoSeven® factory
At the Hillerød site, another new factory is under way designed to support Novo Nordisk's expectations about the expansion strategy for NovoSeven®. The expansion strategy itself, as detailed in the May/2001 issue of Perspective, aims to expand the use of NovoSeven® outside its current indication. In practice, Novo Nordisk is conducting several clinical studies intended to lead to some certain indications of where the use of NovoSeven® can make a difference in conjunction with bleeding episodes/treating illness.
In just a few years the coagulation disorders business has grown to more than 13% of the total turnover for Novo Nordisk, with the insulin business dominating with 65%. The expectation is that NovoSeven® has wide potential for treating bleeding episodes far beyond its original approval as a haemophilia preparation. This is where the factory at the Hillerød site comes into the picture.
True to Novo Nordisk tradition, the factory will be designed to fit into its surroundings. Thus the building will be highly transparent, with large glass facades ensuring that employees have plenty of light and the opportunity to see and enjoy the beautiful landscape around them. The factory is designed for 24-hour production 365 days a year. The factory is also designed for expansion by an entire production unit within the existing space, so that capacity can be increased substantially relatively quickly, if needed.
In practice, the effect of the increased capacity can be measured in kilograms. However, to keep that in perspective, it is worth noting that a dosage of NovoSeven® is measured in milligrams.

Investments and cash flow

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