Ozempic maker Novo Nordisk isn't just Europe's second-most valuable company. It is also singlehandedly boosting Denmark's economy.
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- Ozempic-maker Novo Nordisk is Europe's second-largest company by market capitalization.
- It's also boosting Denmark's economy all on its own.
- Denmark's GDP grew 1.7% in 1H 2023. It would've contracted by 0.3% if not for the pharma sector.
Weight loss drug Ozempic is such a blockbuster hit that its maker, Novo Nordisk, has become one of the most high-profile companies in Europe.
Novo Nordisk's share price is up over 40% this year, taking its market capitalization to 2.3 trillion Danish Kroner, or $328 billion. In comparison, the market cap of LVMH Moët Hennessy Louis Vuitton — Europe's most valuable company now — is 376.95 billion euros or $402 billion.
Novo Nordisk's stunning stock rise this year came on the back of its two blockbuster weight loss drugs, Ozempic and Wegovy. The two products have been big hits in the US for their treatment of obesity. Elon Musk and Amy Schumer have also said they've used the products.
Novo Nordisk's earnings in the first half of 2023 were boosted by the blockbuster weight loss drugs. The company posted 107.7 billion Danish kroner, or $15.5 billion, in total revenues for the period — around 30% higher than a year ago.
Not only that, Novo Nordisk has also been propping up Denmark's economy all on its own.
Denmark's GDP grew by 1.7% in the first half of 2023 from a year ago, according to official statistics — all thanks to the pharmaceutical sector. The economy would've contracted by 0.3% if it weren't for the pharma industry, the country's statistics department said on August 31.
"If it wasn't for Novo Nordisk, there wouldn't have been any growth in the first six months of the year, Las Olsen, the chief economist at Danske Bank, told AFP on September 6.
Jonas Petersen, an analyst at Denmark's statistics department, further told the AFP that the trend is "changing the picture of the economy."
Novo Nordisk is also increasing hiring and has been bringing in billions of US dollars from its drug exports to the US.
The company's share price closed 2.4% lower at 666.50 Danish krone on Friday. The stock is up 42% so far this year.
Denmark's statistics department and Danske Bank's Olsen did not immediately respond to requests from Insider for comment sent outside regular business hours.