Novo Nordisk has briefly overtaken LVMH as Europe’s most valuable public company thanks to the success of its obesity drug Wegovy. The stock market value of the Danish drug manufacturer rose to $421 billion at 10:43 a.m. (CEST) on Friday. At the same time, the Parisian luxury group had a market capitalization of $420.97 billion. However, as of 12:30 p.m., LVMH’s stock market value climbed to $423.9 billion, while Novo was only able to reach $421.9 billion.
The price of Novo Nordisk titles has tripled since 2020. The price of the LVMH share certificates, on the other hand, has only doubled in the same period. In August alone, Novo shares rose nearly 20 percent after a study showed clear benefits of its blockbuster obesity drug in cardiovascular disease. “The fact that Novo has overtaken LVMH as the largest European stock reflects Novo’s recent product success, while recent developments at LVMH have been rather mixed,” said Marcel Stotzel, portfolio manager at fund company Fidelity European.
In February 2021, LVMH ousted the Swiss consumer goods group Nestlé from the top spot as Europe’s largest listed company. However, the Dior and Louis Vuitton parent company is currently suffering from growing concerns about the Chinese economy. Hopes of a quick recovery in the world’s second-largest economy after the relaxation of the corona measures initially pushed the luxury sector up in early 2023. However, a series of disappointing economic data and the burgeoning crisis in the Chinese real estate sector clouded the outlook.