Novo Nordisk Acquires Purdue Pharma’s Treyburn Facility to Strengthen Oral Drug Supply Chain

On August 6, 2019, VCBeat (WeChat ID: vcbeat) learned that with the FDA approval of a new generation of oral GLP-1 antidiabetic drugs, Novo Nordisk is seeking opportunities to strengthen its supply chain. Novo Nordisk has turned its attention to Purdue Pharma in North Carolina, a company currently facing precarious development conditions. Not long ago, Purdue came under scrutiny from state and federal prosecutors for its aggressive marketing of the potent opioid OxyContin.

A statement issued last week by Craig Landau, CEO of Purdue Pharma, to employees stated that Purdue Pharma plans to sell its facility in Trebourne, North Carolina, to Novo Nordisk, with the transaction amount undisclosed.

A Novo Nordisk spokesperson stated that the plant’s location will enable the company to bolster its supply chain for its oral GLP-1 drug, which has been submitted to the FDA for review.

Novo Nordisk spokesperson Ken Inchausti stated in an email, “We aim to establish pharmaceutical production capacity in the United States to build a domestic supply chain for oral semaglutide and future oral medications. Given our existing manufacturing facilities and the ongoing expansion efforts near Clayton, North Carolina, the location of this plant makes strategic sense.”

Purdue Pharma plans to lease the 188,000-square-foot facility before fully vacating the site on December 1. The company will consolidate its manufacturing operations at its Wilson plant in North Carolina.

Landau stated in the announcement: “Although Treyburn is recognized as the most advanced manufacturing facility for solid oral dosage forms, it was built to provide redundancy and backup capacity for Wilson. Given current market conditions and the anticipated demand for our marketed products, continuing to operate Treyburn is no longer justified.”

Although Landau did not specify which drugs were being manufactured at the Treyburn facility, OxyContin was part of the company’s portfolio of oral solid-dose products. A female spokesperson for Purdue Pharma stated that it had long been the company’s policy not to comment on its financial strategies, and she did not disclose whether the factory’s “fewer than 80” employees would be laid off.

In April this year, Novo Nordisk pledged that its entire manufacturing chain would use 100% renewable energy by 2020. Inchausti stated that Novo Nordisk would consider implementing “eco-friendly upgrades” at the Treyburn facility to fulfill this commitment.

In July 2014, Purdue acquired Treybur’s land for approximately $2.7 million, a transaction that terminated Purdue’s five-year right of use to the property. At the time, Purdue paid approximately $53,000 per acre and invested around $59 million in the project.

Novo Nordisk is a global biopharmaceutical company. The company boasts an extensive portfolio of diabetes care products within the industry, including state-of-the-art insulin delivery systems. For over 80 years, Novo Nordisk has been a leader in global diabetes research and drug development. Furthermore, Novo Nordisk holds a leading worldwide position in hemostasis management, growth hormone therapy, and hormone replacement therapy. Headquartered in Denmark, Novo Nordisk employs approximately 40,000 people across 79 countries, with its products marketed in more than 170 countries worldwide.

Purdue Pharma is committed to researching, developing, and providing prescription medications to meet the evolving needs of healthcare professionals, patients, and caregivers. As a privately held company, Purdue introduces a range of new drugs and technologies through internal research and development as well as strategic industry partnerships. Purdue Pharma, a Connecticut-based company owned by the Sackler family, launched OxyContin onto the market in 1995. The Sacklers dismissed warnings about the drug’s addictive potential and launched a well-funded marketing campaign to promote it to physicians. Since then, Purdue Pharma and the Sacklers have faced thousands of lawsuits over their role in the opioid epidemic.

(Compiled by Tian Shuhang)