Novo Nordisk, the Danish pharmaceutical company, has for the first ever become Europe’s largest company by closing prices. This was after it introduced its most popular weight loss drug Wegovy to the UK.
Novo’s shares closed at 1,311 ($190), up 0.7 percent, giving it a $428bn market capitalisation. On Friday of last week, briefly overtook LVMH. The French luxury conglomerate, LVMH, closed Monday down 0.4 percent to €772.60 per share. This gives it a market worth of €383bn or $419bn. Wegovy was launched in Britain on Monday after the drug was introduced in the US in 2021. The high demand on the largest drug market in the world delayed the marketing of Wegovy in Europe. The drug is available in Norway. Denmark and Germany.
The company announced on Monday that it would introduce the drug to the UK through a “controlled and limited launch”.
The company added that it was closely monitoring the demand for Wegovy and working with regulators to ensure those with obesity could access and continue treatment.
Novo Nordisk, based on sales, is the world’s largest producer of diabetes drugs and weight loss medications. Analysts predict that sales will reach between $130bn and 140bn annually worldwide.
The company’s largest competitor on the market, Indianapolis based EliLilly has applied to regulatory approval for its diabetes drug Mounjaro to treat obesity.
In an August study, Novo Nordisk showed that Wegovyalso decreased the risk of serious cardiovascular events such as heart attacks by 20%. Novo Nordisk’s shares have quadrupled in value since 2018. They are up 41 percent this year.
It has also seen a rise in demand for its diabetes medication Ozempic, which contains the same active ingredient found in Wegovy. Clinicians have prescribed this drug to reduce obesity.
Steve Barclay, UK Health and Social Care Secretary said on Monday that the launch of Wegovy could help thousands. It will also reduce the number of people suffering from weight-related diseases.
“The facts are clear: obesity is the second-most preventable cancer cause and costs the NHS approximately £6.5bn. This new generation of drugs has the potential to change everything,” he said.
The official UK list price is around a sixth the US list price. It’s about £175.80 for a pack of 2.4mg dosages. Both health systems and insurance companies, including the NHS negotiate confidential discounts.
Simple Online Pharmacy in the UK has announced that it will charge its patients between £199 to £299 per month for a monthly supply of this drug. On the website of the pharmacy chain, more than 50,000 people expressed interest in the drug.