Treasurer Folwell Announces Approval of Clayton Infrastructure Financing; Eases Path for Global Drugmaker to Produce Diabetes Medications Local Government Commission Action Sets Stage for Industrial Growth
(Raleigh, N.C.) – Local Government Commission (LGC) action is helping a global pharmaceutical company to open a plant in Clayton that will manufacture diabetes medications, and state Treasurer Dale R. Folwell, CPA, said State Health Plan (SHP) members could see some benefits.
Novo Nordisk, a Danish drugmaker that supplies more than half of the world’s insulin, is investing more than $2 billion in a new, active pharmaceutical ingredient production facility expected to go online in Clayton in 2021. The 825,000-square-foot facility would be responsible for GLP-1 medications, which help control blood sugar levels. The product line features Rybelsus, an innovative type 2 diabetes oral tablet recently approved by the U.S. Food and Drug Administration.
An approximately $125 million wastewater treatment plant is being built to provide for the needs of Novo Nordisk and other companies such as Grifols Therapeutics, a Spanish plasma-based therapy company currently conducting clinical trials for treatment of COVID-19 at its Clayton site.
LGC staff have worked with Clayton officials for the past year on financing the project. In September the LGC, chaired by Treasurer Folwell and staffed by the Department of State Treasurer, approved a $12 million revolving loan funded by the N.C. Department of Environmental Quality for design and engineering.
“This is an important health, environmental and economic development project for Clayton, and it’s exactly the type of assistance the Local Government Commission was created to provide,” said Treasurer Folwell. “By replacing aging facilities and infrastructure, and increasing the treatment capacity, it will meet the continued growth of Clayton and Johnston County.”
“Long-term contracts for wastewater treatment with customers like Novo Nordisk and Grifols are essential elements of the repayment plan for debt to be issued by the town for the construction of the new plant,” Treasurer Folwell said. “The contracts will ensure Novo Nordisk and Grifols have a dedicated share of the new wastewater plant’s treatment capacity for its current and future needs.”
Grifols’ commitment to the project was demonstrated in a memorandum of understanding (MOU) that was signed in August. Novo Nordisk recently signed an MOU with the town.
Discussions are continuing to ensure the companies would use the capacity they requested or pay the full amount if they do not require that level of use. In that way taxpayers and ratepayers don’t assume the additional costs of unused capacity, Treasurer Folwell said.
The presence of Nov Nordisk’s manufacturing plant producing diabetes medications in North Carolina has the potential to be a plus for the SHP as it continues efforts to help members manage the disease.
Diabetes treatment is one of the main costs for SHP. The disease has a disproportionate impact on racial and ethnic minorities. Starting in January, SHP will waive costs for members under 65 who take insulin. The goal is to incentivize members to take their medication by making it affordable to all, thus reducing medical expenses due to serious complications from untreated diabetes.
The SHP, a division of the Department of State Treasurer, provides health care coverage to more than 727,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, and their dependents.
For information on diabetes, please visit the SHP Diabetes Resource Center at https://www.shpnc.org/wellness/diabetes-resource-center