The success of the weightloss drug Wegovy has helped its Danish manufacturer to overtake the French luxury group LVMH as Europe’s most valuable company.
After Novo Nordisk, which specialises in diabetes and weight loss treatments, launched Wegovy in the UK on Monday, its share price rose 0.7% to Danish kroner 1,310.80 (£150).
That gave it a market value of £340bn – making it worth more than the entire Danish economy, which is valued at £323bn.
LVMH, which comprises 75 luxury brands including Louis Vuitton, Dior and Givenchy, closed down 0.4% at €772.60 a share, giving it a market value of €388bn (£331bn). Novo Nordisk had briefly overtaken LVMH in terms of its market value on Friday, but fell back by end of trading.
On Tuesday, the Danish drugmaker extended its lead, with its shares rising 1.6% by the afternoon while LVMH fell 1%.
Soaring demand for Wegovy has led to shortages of the appetite-suppressing drug, which is prescribed for people with obesity and is injected by users once a week. Novo Nordisk said on Monday that the drug would be introduced to the UK “through a controlled and limited launch”. It has restricted global supplies as it tries to ramp up manufacturing.
Wegovy is available on the NHS and can also be bought privately at pharmacies. The list price for a month’s supply in the UK ranges from £73.25 to £175.80 depending on the dose,but the NHS negotiated a discount with the manufacturer.
Boots said that because of limited stock of Wegovy it will prioritise supply to people using Saxenda – another weight-loss drug made by Novo Nordisk – through its online doctor service. Many other high street pharmacies are waiting for supply of Wegovy.
Several big UK insurers – Aviva, Axa and WPA – will not cover the cost of Wegovy under their private medical insurance policies. Aviva and Axa said they only cover acute conditions while Wegovy would be classified as treatment for a chronic condition, and WPA (Western Provident Association) has an exclusion on obesity.
Novo Nordisk is the world leader in diabetes and weight loss drugs in a market that analysts predict could reach more than £80bn in annual sales within a decade.
Experts have warned against seeing treatments as a quick fix for the obesity crisis, stressing the importance of exercise and a healthy diet.
