Novo Nordisk, the Danish pharmaceutical colossus and producer of the popular weight-loss drug Wegovy, has now surpassed the French luxury conglomerate LVMH to become the most valuable company across Europe. This notable triumph came in the wake of substantial growth in the company’s share price following the drug’s recent launch in the UK.
As trading came to a close on Monday, Novo Nordisk’s stock market valuation had soared to an impressive $428bn (£339bn). Wegovy, the star of the show, is an ingenious obesity treatment administered weekly and designed to fool the body into feeling satiated; this in turn lowers the user’s food intake, triggering weight loss.
Among the drug’s reported users are celebrated figures such as tech tycoon Elon Musk. Since its approval by U.S. regulators in 2021, Wegovy has been making waves not just in Hollywood, but across the public spectrum, intriguing and engaging all equally. Moreover, along with Ozempic, a diabetes drug yielding similar effects, Wegovy has often been dubbed a “miracle” drug.
However, health experts are quick to remind us that these drugs are neither an easy workaround nor a stand-in for a balanced diet and regular exercise. Clinical trials have shown that former users tended to regain weight once their treatment came to a halt.
In another twist, the global demand for Wegovy has far outpaced supply, leading to a shortage. As a result, only limited stock has been available for the UK’s National Health Service (NHS). Novo Nordisk announced its intent to maintain the limitations on the drug’s supply worldwide while working to enhance its manufacturing capacities.
Sophie Lund-Yates, Hargreaves Lansdown’s lead equity analyst, shared with the BBC’s Wake Up to Money programme that Novo Nordisk had been taken aback by the demand, nearly becoming “a victim of its own success”. “It’s not often that a pharmaceutical company becomes so embedded in popular culture. This calls for caution to ensure the drug is used appropriately and responsibly,” she stated, cautioning that any drug surrounded by such hype could face potential blowback.
As per the NHS guidelines in the UK, Wegovy, which contains the drug semaglutide, is only available for patients significantly overweight and experiencing weight-related health issues. A report from the Organisation for Economic Co-operation and Development (OECD) revealed that nearly one in three adults in the UK are obese, the highest ratio in Europe.
In a surprising development last month, a recent clinical trial demonstrated that Wegovy could also cut the risk of a stroke or heart attack. Although the details of these findings are yet to be thoroughly scrutinised, experts concur that the implications could be monumental.
