Novo Nordisk is Europe's most valuable firm after launching obesity drug

Danish drugmaker Novo Nordisk became Europe's most valuable company after introducing weight-loss drug Wegovy in the UK.

The company's share price closed up 0.7 per cent to DKK 1,311 ($190), giving the company a market capitalisation of $428 billion.

On September 1, it had briefly dethroned French luxury conglomerate LVMH, which closed down 0.4 per cent on Monday to €772.60 a share, giving it a market value of €383bn, or $419 billion, according to a report in the Financial Times (FT).

On Monday, Novo Nordisk introduced Wegovy in Britain after launching it in the US in June 2021.

The company said the drug would be introduced to the UK "through a controlled and limited launch".

 

It added: "We are closely monitoring Wegovy demand and are working with regulators and providers to ensure people living with obesity can have access to and remain on treatment."

The company's biggest competitor in the market, Indianapolis-based Eli Lilly, has applied for regulatory approval to use its diabetes drug Mounjaro to treat obesity, according to the FT report.

A study published by Novo Nordisk in August showed that Wegovy also reduced the risk of serious cardiac events, including heart attacks by 20 per cent.

The success of the Wegovy drug has caused the value of Novo Nordisk's shares to more than quadruple since 2018, gaining 41 per cent this year alone. The company has also benefited from demand for its diabetes drug Ozempic.

Steve Barclay, UK health and social care secretary, said, "The launch of Wegovy has the potential to help thousands and reduce the number suffering from weight-related illnesses while also reducing pressure on the NHS and helping us continue to cut waiting lists."

Barclay added that this new generation of medicines have the potential to be a game-changer.

The UK official list price is approximately a sixth of the US list price, at about £175.80 per pack of 2.4 mg doses.