The obesity drug Wegovy is being sold in more and more countries. The success of the syringe makes the manufacturer Novo Nordisk the group with the highest stock market value in Europe. In Denmark, this ensures economic growth.
Novo Nordisk, manufacturer of the Wegovy weight loss syringe, is more valuable than any other European company on the stock exchange. The pharmaceutical group from Denmark has replaced the French luxury goods manufacturer LVMH in the top spot – with a market capitalization of around 428 billion dollars. LVMH had been the most valuable company in Europe by stock exchange listing since February 2021.
The drug Wegovy has become an enormous success for Novo Nordisk since it was first approved two years ago. The slimming syringe has been available in Germany since July. Novo Nordisk also sells Wegovy in the USA, Norway and Denmark – and now also in Great Britain.
Specialist in insulin
Wegovy’s active ingredient semaglutide was originally developed to treat diabetes. Medicines for diabetes have been Novo Nordisk’s core business for over a hundred years. When insulin was discovered in Canada in 1921, the Danish Nobel Prize winner August Krogh heard about this invention – and recognized the potential. He brought the insulin to Denmark.
Not only was August Krogh’s wife healed; In 1923, the small company Nordisk began manufacturing insulin, making diabetes a manageable disease.
Two employees of the company went into business for themselves – with the company Novo Terapeutisk Laboratorium. This meant that there were two competitors in the same market. Both pursued the same goals and researched the same medical fields.
Lots of attention on social media
As early as the 1960s, Novo produced half of the world’s insulin requirements. Nordisk launched the world’s first growth hormone in 1973 – the basis for the company being an established pharmaceutical company today. In 1989 there was a merger. To this day, insulin is the focus of the group, while diabetes research is the core business.
But then Wegovy came onto the market. The fat-away-syringe was first available in the USA. It was approved by the FDA in 2021 – and immediately went viral on social media. The dream of many overweight people seemed to come true. Anyone can self-inject Wegovy – once a week. Losing weight has never seemed so easy.
Self-administration appetite suppressant
The Wegovy active ingredient semaglutide has been approved for reducing blood sugar in diabetes for several years. Wegovy is said to curb appetite and increase the feeling of satiety after eating. It must be injected weekly with pre-filled injection pens. If you stop doing it, you’ll put on weight again – unless you’ve adjusted your diet accordingly.
Target groups are people with a body mass index (BMI) of 30 or more and people with a BMI of 27 or more if they also suffer from diabetes, high blood pressure or cardiovascular diseases. Side effects include gastrointestinal problems, dizziness, headaches or low blood pressure.
The German Society for Endocrinology (DGE) eV had confirmed the mode of action in November 2022: “The substance (…) can also help with weight loss.” Because semaglutide leads to a weight reduction of about 15 percent even in people without diabetes. “The prescription syringes approved for diabetics have a similar effect to the endogenous hormone GLP-1, which among other things suppresses appetite.”
long-term effect unknown
But there is also criticism. According to Harald Schneider, spokesman for the DGE’s Applied Endocrinology Section, this is a dangerous trend: “Uncontrolled use without indication is associated with risks and side effects, such as nausea and vomiting.” Diseases of the pancreas and gallbladder could also follow. “Animal studies have also found a potentially increased risk of certain types of thyroid cancer.” In addition, nothing is known about the long-term effects, according to Schneider.
And yet: The demand was and is enormous. The first batches in Denmark and the USA were sold out after a short time. Novo Nordisk couldn’t keep up with the production. A clinical study in the summer of 2023 fueled the success. She also comes to the conclusion that the weight loss injection Wegovy can reduce the risk of cardiovascular diseases such as heart attacks and strokes in overweight people by up to 20 percent. This was the result of research on 17,600 subjects aged 45 and over.
Economic boost for Denmark
The results of the study alone pushed the stock up by a good 15 percent in early August. The fact that celebrities such as Tesla boss Elon Musk or Kim Kardashian were enthusiastic about the fat-away injection increased the rush for the drug. The Danish company’s price has tripled since 2020.
The stock market value of Novo Nordisk now exceeds the amount that all of Denmark generated in economic output in 2022 ($398 billion). The pharmaceutical manufacturer brings the state such high tax revenues that Denmark has raised its growth forecast for the year as a whole: the Danish economy is expected to grow by 1.7 percent this year. According to the Economics Ministry, without Wegovy it would have shrunk by 0.3 percent.
There is no end in sight to the hype: Novo Nordisk is the top-selling manufacturer in the market for diabetes products and weight-loss drugs. According to estimates by experts, the market has the potential to achieve sales of 130 to 140 billion dollars worldwide. The US group Eli Lilly is the Danes’ biggest competitor in this business. Eli Lilly has also applied for approval of its diabetes drug Mounjaro for the treatment of obesity.
Distribution in other countries planned
The sale of the sprayer in other countries is planned – although it is already clear that the production capacities will not be sufficient for the high demand for a long time. In the European Union, Wegovy is approved for adults who are obese and have a BMI of 30 or more – or are overweight and have a BMI of 27 or more if at least one weight-related comorbidity is present.
The prescription drug is expensive. In the US, Wegovy has a list price of $1,350 for the highest dose for four weeks, in Germany the price is around €302. Statutory health insurance companies do not cover the costs because they generally do not reimburse medication for weight reduction. The association of private health insurance companies, on the other hand, had stated that the assumption of costs was possible if the doctor prescribed the drug based on the indication.
In industrialized countries gaining excess weight
Overweight and obesity have increased significantly in recent years, especially in industrialized countries. This increases the risk of serious diseases such as heart attacks, diabetes or even certain types of cancer. According to the World Health Organization (WHO), more than half of adults in Europe are overweight.
Critics fear that with the sales success of Wegovy, the general public could lose weight at the expense of diabetics. Doctors are therefore instructed to only prescribe the slimming agent to really seriously ill patients.