Novo Nordisk's Ozempic Propels Denmark's Economy to New Heights

2023-09-19 20:46:30

Ozempic Maker Novo Nordisk Boosting Denmark's Economy

The blockbuster drug Ozempic is such a hit that it's helped its maker, Novo Nordisk, become one of the highest-profile companies in Europe.

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Novo Nordisk's share price was up over 40% this year as of Friday's close, taking its market capitalization to 2.6 trillion Danish kroner, or $379 billion. In comparison, the market cap of LVMH Moët Hennessy Louis Vuitton — Europe's most valuable company now — was roughly $400 billion.

Novo Nordisk's Growth and Success

Novo Nordisk's stunning stock rise this year has come on the back of the drugs Ozempic and Wegovy. The two products have been big hits in the US for their treatment of obesity; the Food and Drug Administration approved Wegovy's use for that purpose in 2021, and the diabetes drug Ozempic contains the same active ingredient, semaglutide. Elon Musk and Amy Schumer are among those who've said they've used the products.

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The drugs boosted Novo Nordisk's earnings in the first half of 2023. The company posted 107.7 billion Danish kroner in revenue for the period — about 30% higher than the same period a year ago.

Impact on Denmark's Economy

Not only that, but Novo Nordisk has even been propping up Denmark's economy. Denmark's gross domestic product 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.

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Expert Opinions on Novo Nordisk's Impact

"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 AFP the trend was "changing the picture of the economy."

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Positive Employment Impact and Revenue

Novo Nordisk is also increasing hiring and has been bringing in billions of US dollars from its drug exports to the US.

Quick summary

The company's share price closed down 2.4% at 666.50 Danish kroner on Friday, leaving the stock up 42% this year. Novo Nordisk's success in the pharmaceutical industry has not only propelled its own growth but also had a significant positive impact on Denmark's economy.

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