Novo Nordisk, the company behind Ozempic, is worth more than Denmark's GDP

For several months now, in various discussion forums there has been a lot of talk about Ozempic, a popular drug to treat diabetes produced by the Danish pharmaceutical company Novo Nordisk. Users call it “the Ozempic miracle.”

The drug was renamed the Hollywood drug, since many movie stars have long used it to lose weight.

At the 2023 Oscars, Jimmy Kimmel, known for hosting 'The Late Night Show', joked about the drug. “They all look fit,” he said. “When I look at this room I can't help but wonder: Would Ozempic be good for me?” he said, laughing.

Its success skyrocketed sales, fattening the company's pockets. Its stock market value exceeds $500 billion and is worth more than Denmark's GDP (about $405,121 million in 2023).

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Novo Nordisk is the second company to reach this value in Europe. The first was the French luxury brand LVMH, which achieved it in July 2023.

The company is extremely valuable to the country's economy. In fact, in 2023 Denmark's GDP increased by 1.8%, according to estimates by the Danish Statistical Office. The organization points out that growth has been driven by the pharmaceutical sector, and mainly by Novo Nordisk. Without the push of this industry, the economy would have fallen by 0.1%.

The sales success is surprising given the exorbitant costs of this medication, especially in the United States, where the monthly price of this injectable drug exceeds $900 without insurance coverage.

Despite the price, high demand caused a shortage crisis and forced the company to reduce supplies to guarantee doses to patients already taking the treatment.

Beyond Ozempic, the company produces other drugs to treat obesity, such as Wegovy and Saxenda. Its sales quadrupled between 2007 and 2023.

On January 31, 2024, the company presented record results. In 2023 it achieved a net profit of more than 11,000 million euros, 51% more than the previous year.

Kasim Kutay, CEO of Novo Holdings, majority shareholder of the Danish firm, stated in an interview with Reuters that it plans to invest about $35 billion until 2030, that is, about $7 billion a year.

However, there are risks on several fronts. The Danish firm competes in the market with the American Eli Lilly, the world's leading pharmaceutical company, which also produces medications for those struggling with their weight.

Novo Nordisk also faces competition from emerging markets such as China, which offer a similar but cheaper product.

In addition, both the Danish firm and the European Medicines Agency warned that in the European Union and the United Kingdom counterfeits of Ozempic have been identified in the wholesale market.

Novo Nordisk is a world leader in the treatment of diabetes and among the leading insulin producers in the world. According to a UBS report collected by the Spanish-language newspaper Cinco Días, the obesity business represented 88% of the Danish firm's sales in 2022.

These drugs are a gold mine for the company. Data from the International Diabetes Federation demonstrate this: the organization estimates that currently around 537 million people suffer from this pathology, and predicts that in 2045 there will be 784 million.

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