Novo Nordisk richer than home nation Denmark, thanks to US obsession with weight-loss drugs
The popularity of weight-loss drugs among Americans has helped Denmark-based Novo Nordisk take its market value to $413 billion -- more than its home country's estimated GDP of about $406 billion.
IANS
Aug 19, 2023 04:17
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New York, Aug 19 (IANS) The popularity of weight-loss drugs among Americans has helped Denmark-based Novo Nordisk take its market value to $413 billion -- more than its home country's estimated GDP of about $406 billion.
Novo Nordisk manufactures Wegovy and Ozempic, two weight-loss drugs that help patients lower their blood sugar levels and lose upwards of 25 pounds (over 11 kgs).
According to a Wall Street Journal report, America's obsession with weight-loss drugs is affecting the economy of Denmark as Novo Nordisk’s market capitalisation soared 38 per cent year-to-date and crossed the GDP of its home country.
Surging demand for effective weight-loss drugs in America is having a big impact on Denmark's economy in the form of lower interest rates and a strengthening currency, the report noted.
The sale of these two weight-loss drugs in the US have sent Novo Nordisk's market valuation soaring to the second most valuable company in Europe, after luxury goods maker LVMH.
The fast uptake of Wegovy and Ozempic has led to shortages of the drug as the company races to increase supply to meet demand, the report said.
Weight-loss and diabetes drugs such as Ozempic are delivered by injection.
The company is expected to generate sales of about $6 billion for its weight loss drug, and analysts at FactSet expect that revenue figure to surge to about $15 billion annually in 2027.
According to the WSJ report, the large influx of currency has strengthened the Danish kroner relative to the euro.
Since the kroner is pegged to the euro, Denmark's central bank has kept interest rates lower than rates set by the European Central Bank to weaken the currency.
“Lower interest rates could be a boon for Danish consumers who are in the market for a house or car or other big purchase that often requires some form of financing,” the report noted.
