Novo Nordisk Is Worth More Than Denmark's GDP Thanks to America's Ozempic and Wegovy Craze The pharmaceutical company Novo Nordisk has seen an unprecedented surge in profits, and has subsequently influenced the economy of Denmark, where the company is based.
By Madeline Garfinkle •
Key Takeaways
- The company's market value of $419 billion now surpasses Denmark's GDP ($406 billion), resulting in lower interest rates across the nation.
- Novo Nordisk's financial performance is set to continue, with a projected 37% profit gain for 2023.
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Ozempic and Wegovy don't just affect weight loss, the two have had a far-reaching influence on Denmark's economy.
Novo Nordisk, the manufacturer of the drugs (historically used to treat diabetes but increasingly gained popularity for their weight loss effects), has amassed billions, with its most recent earnings report marking $7.1 billion in profit for the second quarter of 2023.
The Bagsværd-based drug manufacturer is now Denmark's biggest company and its market value ($419 billion) is ahead of the country's GDP ($406 billion), also leading to lower interest rates across the nation, The Wall Street Journal reported.
"Because the pharmaceutical industry's exports have grown so much, it's creating a big influx of currency into the Danish economy," Jens Naervig Pedersen, director of Danske Bank, told the outlet.
As the Ozempic craze reached the U.S., it sparked widespread shortages lasting nearly six months and finally coming to an end in March.
Prescriptions for the drug hit its all-time high in the U.S. with 373,000 prescriptions filled in the last week of February — marking an 111% increase from the same week a year prior, according to a J.P. Morgan analysis of IQVIA data, per CNN.
The popularity has spread elsewhere to, contributing to subsequent shortages in Canada and the U.K.
Pedersen added that Denmark's central bankers have maintained interest rates below those of the European Central Bank, thereby weakening the Danish krone. The low-interest rates allow Danish homeowners to pay less on their mortgages than anywhere else in Europe, Pedersen added to the outlet.
Related: Novo Nordisk, the Maker of Ozempic, Is Suing Spas and Clinics For Allegedly Selling Knockoffs
Novo Nordisk is now the second most valuable company across all of Europe, according to market capitalization tracker, Companies Market Cap — and there are no signs of it slowing down anytime soon. The company expects a 37% profit gain for 2023, as stated in its Q2 earnings report.
The success of a company affecting a country's overall economy isn't anything new. Volkswagen, for example, has long contributed to Germany's economy, as the automaker contributes to the country's employment levels and strengthens its industrial sector. However, when a nation hinges so much weight on a brand, it also means there can be adverse effects.
In June, Europe's industrial production experienced an overall drop of 1.5% as compared to a month prior, driven primarily by a 3.5% decline in Germany's automotive sector (which accounts for 5% of the country's overall economy), CNN reported.
Related: WeightWatchers Is Getting Into the Ozempic And Wegovy Weight Loss Drugs Game
