The Danish pharmaceutical giant Novo Nordisk, manufacturer of the popular weight-loss drugs Ozempic and Wegovy, has dethroned the French luxury group LVMH as the largest stock market capitalization in Europe. Analysts expect Wegovy to become the best-selling drug ever.
Novo Nordisk had a market capitalization of USD 428 billion after the stock markets closed on Monday. The stock has skyrocketed in recent days due to the launch of the popular obesity drug Wegovy in the UK.
The Danish pharmaceutical giant is not yet the most valuable European company ever. French luxury group LVMH became the first ever to reach the $ 500 billion mark earlier this year, but now feels the economic problems in China weigh and is now around $ 410 billion.
Larger than Denmark’s GDP
Not yet, because analysts do not consider that record unattainable for Novo Nordisk. “It is currently not only the largest in Europe, but also the largest in the pharmaceutical sector – larger than Johnson & Johnson, Pfizer and Sanofi,” says Danny Reweghs, director of strategy at Trends Investing. “The market capitalization of Novo Nordisk is now greater than the gross domestic product (GDP) of Denmark itself. If no bad news comes, it is not impossible that this will be the largest European market capitalization ever.”
Also view the stock market interview with Danny Reweghs on Kanaal Z or read more below.
About Novo Nordisk from 3:24 in this video
‘Wonder medicines’
Novo Nordisk is the manufacturer of the hyped drugs Wegovy and Ozempic. They artificially suppress hunger and give you the feeling that you are full, so that you eat less and therefore lose weight.
They are considered miracle drugs in the fight against obesity, because they give the perception that people can lose weight with a simple injection without having to watch their diet. However, experts warn that the drugs are not suitable as a substitute for a healthy diet and exercise (read more).
Only Wegovy is also officially registered as an obesity medicine, Ozempic as a diabetes medicine. Both products have the same active ingredient semaglutide, but Wegovy in a higher dose than Ozempic (up to 2.4 mg and 1 mg, respectively). Novo Nordisk’s own research has shown that Wegovy also reduces the risk of stroke or cardiovascular disease, although that may also be a result of the weight loss rather than the drug.
Demand greater than supply
Danny Reweghs: “That is a double game changer for Novo Nordisk: its diabetes drug Ozempic also appears to be a successful weight loss agent, while the obesity drug Wegovy also lowers the risk of cardiovascular disease. Wegovy has the potential to become the best-selling drug ever.”
Wegovy is not yet available in Belgium. It has been approved by the European Medicines Agency as a weight-loss drug, but will not be on the market until next year. Ozempic is already for sale in Belgium, but because the demand has become greater than the supply, many diabetes patients also have difficulty obtaining it.
Thanks to the pig
The fact that Novo Nordisk is now a billion-dollar company is thanks to the pig. Before the advent of synthetic insulin, human insulin was mainly extracted from the pancreas of slaughtered pigs. As a Danish company, Novo Nordisk had a double advantage: the country has five times more pigs than people and, thanks to Carlsberg’s brewing expertise, it was able to fine-tune the fermentation.
2023-09-06 19:53:48
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