Danish drugmaker Novo Nordisk plans to invest 650 million krone, or $98 million, to upgrade and expand facilities at its site in Kalundborg.

The plants currently manufacture a range of diabetes products but will be rebuilt to allow for future production of next-generation products. Novo Nordisk anticipates completing the project in 2020.

Michael Hallgren, Novo Nordisk’s senior vice president for production in Kalundborg, said the investment highlights the company’s ambition to continue strengthening its presence, both in Denmark and Kalundborg, which manufactures about half of the world’s insulin.

Since the turn of the millennium alone, Hallgren said, Novo Nordisk has invested more than 15 billion Danish krone ($2.26 billion) in Kalundborg, which is a cornerstone of the company's global production network. The site also produces a range of biopharmaceutical products as well as housing facilities for biotechnology company Novozymes.

In March, Novo Nordisk announced that it had reached a settlement with the US subsidiary of Israeli generics manufacturer Teva Pharmaceuticals relating to its diabetes treatment Victoza.

The agreement means that Teva cannot launch a generic version of Victoza until Dec. 22, 2023. Under certain circumstances, Teva could launch a generic version of Victoza earlier, though not before Mar. 22, 2023. If Novo Nordisk is granted six months pediatric extension for the diabetes drug, these timelines will also be extended by six months.

The agreement remains subject to review by the US Federal Trade Commission and the US Department of Justice.