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Novo Nordisk has become Europe’s most valuable company based on closing prices for the first time, after the Danish pharmaceutical group introduced its best-selling weight-loss drug Wegovy in the UK.
Novo’s share price closed up 0.7 per cent to DKK1,311 ($190), giving the company a market capitalisation of $428bn. On Friday last week it had briefly dethroned LVMH. The French luxury conglomerate closed down 0.4 per cent on Monday to €772.60 a share, giving it a market value of €383bn, or $419bn.
The drugmaker on Monday introduced Wegovy in Britain after launching it in the US in June 2021. Soaring demand in the world’s largest drug market subsequently delayed marketing in Europe. The drug is already available in Norway, Denmark, and Germany.
The company said on Monday that the drug would be introduced to the UK “through a controlled and limited launch”.
“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,” it added.
Novo Nordisk is the largest producer, by sales, in a market for diabetes and new weight-loss drugs that analysts forecast to reach $130bn-$140bn in annual sales worldwide.
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.
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 drug has caused the value of Novo’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 — which includes the same active ingredient as Wegovy and has been prescribed by clinicians to reduce obesity.
UK health and social care secretary Steve Barclay said on Monday: “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”.
“The facts about obesity are stark — it’s the second biggest preventable cause of cancer and costs the NHS around £6.5bn. So this new generation of medicines have the potential to be a game-changer,” he added.
The UK official list price is about a sixth of the US list price, at about £175.80 per pack of 2.4mg doses. But both health systems and insurers, including the NHS, negotiate confidential discounts.
A UK-based online pharmacy, Simple Online Pharmacy, has said it will charge patients between £199 and £299 a month for a supply of the drug. More than 50,000 people registered an interest in the product on the pharmacy chains website.
Additional reporting by Hannah Kuchler
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