A sought-after weight-loss treatment has helped drug company Novo Nordisk become such a success that its market value exceeds that of the entire Danish economy.
With the drug’s recent expansion in the UK, Novo is now Europe’s most valuable company, displacing French luxury brand LVMH, which has held that title. from 2021.
The Bagsvaerd, Denmark-based company launched its “miracle” weight-loss drug Wegovy in the UK on Monday, sending its shares to record highs. Novo cemented its lead over LVMH with a market capitalization of $428 billion at the end of the trading day, compared with the luxury goods group’s $419 billion.
The pharmaceutical giant briefly overtook LVMH in market capitalization on Friday before slipping towards the end of the trading day.
Wegovy launch highly anticipated in UK amid high obesity rates Highest in Europe.The UK will be the fifth market for the drug, following £40 million ($50 million) Government-approved pilot program launched in June.
At the time, Prime Minister Rishi Sunak said obesity was a “huge pressure on the NHS” and Wegovy could be a “game changer”.
Novo’s growth
The Danish pharmaceutical giant is a familiar name in the diabetes treatment space, as it produces nearly 50% of the world’s insulin. But when Ozempic and Wegovy were widely talked about on social media, it shot to fame. It also helps that Tesla CEO Elon Musk is also one of the company’s first-line users. tweet about Use Wegovy to make yourself look “torn”.
Novo’s blockbuster drugs Ozempic and Wegovy contain the same active chemical, lower blood sugar And helps suppress appetite, thereby reducing weight. A recently published study by the company found that Wegovy also reduced the risk of heart attack and stroke by 20%, adding to the drug’s success.
The company’s shares have more than tripled since the end of 2020 as it expanded its operations around the world, beating other European giants such as Nestle along the way.
The company said in August that its weight loss and diabetes medicines would help 39 million people around the world in the first half of 2023 alone. Sales of the obesity care drug soared 157% over the same period, the company reports last month.
“We serve more patients than ever before,” Novo Chief Executive Lars Fruergaard Jørgensen said in a statement after the earnings release. The company raised its full-year sales and profitability targets amid strong demand.
Supply crunch collides with expansion
The drug will be available by prescription through the NHS and the private market at about a fifth of what Wegovy sells for in the US, According to Bloomberg. The drug costs between £199 ($251) and £299 ($377) a month in the UK, while prices in the US are higher than in any other market, at more than $1,300 a month.
Although the launch of Wegovy in the UK has been carried out in a “limited and controlled manner”, a large number of people seeking the popular weight-loss drug have been in conflict with the company’s supply shortage.
The number of patients using the diet drug in the UK is expected to surge due to pent-up demand. Novo has already imposed supply restrictions on certain doses of the drug and said it expects “some products and medicines” to remain restricted. “Regions” in Q2 Earnings call last month.
The UK National Health Service (NHS) wealth The company has enough supplies to fill prescriptions for 50,000 patients in the UK.
“Despite limited global supply, NHS England is taking action to start implementing NICE (National Institute for Health and Care Excellence) weight management guidelines, while working to restore supply of these medicines to patients with type 2 diabetes, NHS spokesman said in a statement.
Private retailers such as Superdrug already have teams of 20,000 waiting list For Wei Gewei.
Novo did not return immediately wealthrequest for comment.
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