A previously unknown pharmaceutical that claims the title of Europe’s most valuable company

Danish pharmaceuticals are developing into the new star of European markets Novo Nordisk With a car of course blockbuster Medicine and goofy against obesity. In fact, today the company was able to temporarily displace the French giant of the luxury goods sector, LVMH, As the company with the largest capital in Europe.

Specifically, the market value of Novo’s securities Temporarily exceeded $421 billion In doing so, it was able to overtake LVMH, which was valued at $420.9 billion at the time.

For its part, the French company also recorded a very good year thanks to the recovery in sales of luxury products, with the result that last April it became the first European company to exceed its value. $500 billion mark.

Since then, of course, the summer turmoil in the markets (especially in August) has reduced LVMH’s share and with it its market value, without losing its lead. Something that almost happened today and will likely happen again by the Danish company that has become the hot new name in… Pharmaceutical industry.

Stock pool

With its stock increasing continuously since the beginning of the year compared to the overall increase Up to approximately 40% (or an increase of 66%) At a 12-month level), the once largely unknown company is now moving steadily between… From the first and second place In the list of major European companies based on their market capitalization.

actually, The only pharmaceutical in the elite top tenWhere luxury goods and cosmetics companies such as L’Oreal, Hermes and of course LVMH dominate.

Especially in August, the company’s strength has been strengthened, and the test data has been enhanced From using Wegovy It was considered particularly encouraging, as it reduces the risk of serious heart attacks by up to 20%.

strengthening the economy of Denmark

In fact, at the beginning of August, its market capitalization reached its peak at $423 billion (i.e., 2.87 trillion Danish kroner). It also exceeded the total GDP of Denmark itselfbased on the country’s economic data for 2022. The boost it provides to the economy is impressive, with analysts seeing it as the main factor behind Upward revision of estimates Regarding growth rates in Denmark this year, from 0.6% to 1.2%.

We saw something similar during the pandemic, with the coronavirus “explosion.”From the German company BioNTech And the boost it gave overall to German GDP. The only difference is that the German biotech jump was based on a target sector, namely Corona pandemic vaccines, whose profits dwindled with the epidemic, unlike the case of Novo, whose strength depends on the treatment sector. Of diabetes and obesity, which will have a lot of… bread in the coming years. It is estimated that the market for anti-obesity preparations alone will be easily surpassed The “golden” limit is $100 billion Already until the end of the decade!

It is no coincidence that stock and investment analysts They “bet” on the potential of the company And “see” further rise in its shares.

The golden pie of the anti-obesity market

In addition to the encouraging data from Wegovy’s trials, Novo’s outlook is also boosted by growing demand for its most successful drug to date. ozimbek, It is designed to treat diabetes, but it contains one of Wegovy’s main active ingredients, so it is actually used to treat obesity.

Meanwhile, the company continues to invest for further development. Just yesterday it was announced that an agreement had been reached to acquire another Danish pharmaceutical company, Embark Biotech, Which is studying creating a new drug that will curb appetite. Also in mid-August, it agreed to take over the Canadian company Invisago Pharma, Which also deals with the study of diabetes and obesity.

Through these acquisitions, Novo is trying to consolidate its dominant role in the critically important diabetes and obesity market, a broader, high-growth segment that analysts expect to grow in sales. From 130 to 140 billion dollars annually.

The Danish company wants to get the biggest piece of this pie with another competitor as its main competitor American Eli Lilly, which for its part… increased its pace, wanting to keep up with new data in the industry. The company also has a “strong” injectable formulation in final testing, which is showing very good results so far. The question is who will be able to reach the shelves first and secure the largest market share.

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MedicinesPharmaceutical CompaniesObesityNovo Nordisk