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Danish pharmaceutical group Novo Nordisk has become Europe’s most valuable company by closing price for the first time after it launched its best-selling diet drug Wegovy in the UK.
Novo shares closed up 0.7 percent at 1,311 Danish crowns ($190), giving the company a market value of $428 billion. It briefly replaced LVMH on Friday. The French luxury group closed down 0.4 percent at 772.60 euros per share on Monday, giving it a market capitalization of 383 billion euros ($419 billion).
The drugmaker launched Wegovy in the UK on Monday, following a June 2021 launch of Wegovy in the US. Soaring demand in the world’s largest drug market has subsequently delayed marketing in Europe. The drug is already on the market in Norway, Denmark and Germany.
The company said on Monday the drug would be introduced to the UK “through a controlled and limited launch”.
“We are closely monitoring the need for Wegovy and working with regulators and providers to ensure that patients with obesity can access and continue to receive treatment,” it added.
Novo Nordisk is the largest maker of diabetes and new weight-loss drugs by sales, with analysts forecasting global annual sales of $130 billion to $140 billion.
The company’s biggest competitor in the market, Indianapolis-based Eli Lilly, has applied for regulatory approval to use its diabetes drug Mounjaro to treat obesity.
Wegovy also reduced the risk of serious cardiac events, such as heart attacks, by 20%, according to a Novo Nordisk study published in August. The drug’s success has seen Novo’s shares more than quadruple since 2018, and up 41% this year alone.
The company is also benefiting from demand for its diabetes drug Ozempic, which contains the same active ingredient as Wegovy and is already being used by clinicians to reduce obesity.
Health and Social Care Secretary Steve Barclay said on Monday: “The launch of Wegovy has the potential to help thousands of people and reduce the number of people suffering from weight-related illnesses, while also taking pressure off the NHS and helping us continue to reduce waiting lists.” .
“The facts about obesity are stark – it is the second most preventable cause of cancer, costing the NHS around £6.5bn. Thus, a new generation of drugs has the potential to be a game-changer. ’ he added.
The official UK list price is about one-sixth of the US list price, at around £175.80 per pack of the 2.4 mg dose. But health systems and insurers, including the NHS, negotiate secret discounts.
Simple Online Pharmacy, an online pharmacy in the UK, said it would charge patients between £199 and £299 a month for supplies. More than 50,000 people registered an interest in the product on the pharmacy chain’s website.
Additional reporting by Hannah Kuhler
Svlook
