How a boom in weight loss drugs could fatten construction firms’ order backlogs

Drug companies like Danish firm Novo Nordisk and US company Eli Lilly have already made a series of announcements about pumping billions of dollars into new factories around the world.

And more competitors are entering the fray, as the GLP-1-based drugs, originally developed for sufferers of type-2 diabetes, have started to enter the mainstream as a means of suppressing users’ appetites and regulating their metabolisms.

In fact, investment bank Morgan Stanley last month amended its forecast for the global weight loss drugs market to increase to US$150 billion by 2035, up from its $105 billion, as the size of the population eligible for the drugs increases.

Amid shortages and high levels of demand, drug firms have been rushing to boost their manufacturing capacity.

Billions-of-dollars’ worth of new projects

In June 2024, Novo Nordisk announced a $4.1 billion investment to construct a 1.4 million square foot fill-finish facility in Clayton, North Carolina, adjacent to its existing operations. The new factory will boost production of its weight-loss drug Wegovy and diabetes treatment Ozempic.

A digital rendering of the expansed Novo Nordisk manufacturing facility in Clayton, North Carolina (Image: BE&K Group)

BE&K Building Group said it is directly performing a significant portion of the work at the North Carolina site as construction manager, as well as serving as agency construction manager. Work is expected to be completed in phases between 2027 and 2029.

Meanwhile, Novo Nordisk’s rival Eli Lilly is also making significant investments. Last year, it announced that it would more than double its investment in a new manufacturing site in Lebanon, Indiana. The new $9 billion manufacturing facility will enhance the company’s capacity to manufacture pharmaceutical ingredients for its obesity and weight loss drugs Mounjaro and Zepbound. US-based construction firm Fluor is building the facility, with the project expected to create 5,000 construction jobs, ahead of completion in 2027.

Eli Lilly also announced a $3 billion expansion of a facility in Kenosha County, Wisconsin, that it acquired in 2024, to expand manufacturing of its diabetes and obesity medicines. Outside of the US, the company announced in October last year that it would also expand its factory in Suzhou, Jiangsu province, China, to meet demand for the drugs locally and in Europe. The project its expected to require CNY 1.5 billion (US$208 million) in investment.

Meanwhile, the company this year announced plans to further bolster its domestic medicine production, with the construction of a further four pharmaceutical manufacturing sites in the US, creating nearly 10,000 construction jobs. One of those four sites, which require additional investment of $27 billion, is expected to focus on sterile injectable medicines that include its weight loss drugs.

A computer-generated image of Eli Lilly and Company’s new manufacturing site in Lebanon, Indiana (Image: Eli Lilly & Company)

Other manufacturers vie for market share

While Novo Nordisk and Eli Lilly produce what are arguably the best-known names in the sphere of weight-loss drugs, other companies are planning construction of new factories as they vie to take a share of the market.

Last month, Roche Group’s Genentech announced plans to invest more than US$700 million in a new 700,000 sq ft drug manufacturing facility in Holly Springs, North Carolina, USA.

The facility will support the company’s future portfolio of next-generation obesity medicines and is expected to generate 1,500 construction jobs.

Meanwhile, in March this year, Currax Pharmaceuticals announced it has won approval for a second manufacturing site for its oral weight loss medicine, Contrave, also marketed as Mysimba in the European Union and European Economic Area.

The location of the site and details of its construction have not been published so far.

Image: Patrick Bay Damsted via AdobeStock - stock.adobe.com

While many recent announcements have centred on new manufacturing facilities in Europe and the US, more construction projects could start to pop up in other parts of the world, particularly Asia.

Morgan Stanley equity analyst Thibault Boutherin said in a research note last month that the rate of penetration of obesity drugs could jump from about 1% of the obese population currently in the rest of the world to 10% in the next 10 years.

“We anticipate manufacturers’ focus on Asia’s obesity market will grow, particularly in China and Japan, where penetration is low and innovation continues to emerge,” he said.

And in April, Novo Nordisk and Lifera, a biopharmaceutical company owned by the Saudi Public Investment Fund, signed a memorandum of understanding (MOU) to pursue the localisation of semaglutide GLP-1 treatments in the Kingdom of Saudi Arabia, signalling the potential for more construction projects there.

Positive effect on backlogs

While manufacturing facilities for weight-loss drugs make up only one part of the wider life sciences category, major construction companies are reporting a healthy uptick in orders from the sector.

Last month, engineering consultancy Jacobs noted that life sciences were one of the main drivers of revenue growth within its Infrastructure & Advanced Facilities (I&AF) division in the second quarter of 2025. Jacob’s Chair and CEO Bob Pragada said that the company saw “tailwinds” in the I&AF segment, along with robust bookings.

Fluor also revealed in May that revenue in its Urban Solutions business increased to $2.2 billion in the first quarter of 2025, up from $1.5 billion, as it ramps up execution on new awards secured over the past 18 months, including several life sciences projects. Pharmaceutical projects have also contributed to its increased $5.3 billion backlog in Urban Solutions.

New facilities will have complex requirements including cleanroom environments, advanced HVAC systems and compliance with strict regulatory standards. Contractors with expertise in pharmaceutical construction are likely to remain in high demand as more projects are announced.