User:Koktej qesharak/Influence of Novo Nordisk on Danish economy

Novo Nordisk, a global healthcare company headquartered in Denmark, has played an important role in  Denmark economy. In 2023 it became Europe’s most valuable listed company, worth about $403 billion, and 12th most valuable company in the world. In August 2023 Novo Nordisk’s market value has exceeded the size of the Danish economy. It is the biggest contributor to Danish corporation tax.

Background
Novo Nordisk, a Danish pharmaceutical company, known for weight-loss drugs Ozempic and Wegovy, as well as half the world’s insulin. Its sales grew by more than a third in 2023, net profit rose by 51%, to $12.1bn. The company influences health budgets, tax rates and the cost of mortgages. The company primarily focused on diabetes treatment. It experienced growth with the introduction of it’s drugs for weight loss, particularly in the United States. The U.S. Food and Drug Administration approved Ozempic as a diabetes medication in 2017, followed by the approval of Wegovy in 2021. Novo Nordisk’s profit grew 45 percent to 39 billion Danish kroner in 2023, driven by demand for the drugs. The company’s share price has nearly tripled since Wegovy was launched in June 2021.

Employment
Novo Nordisk is one of Denmark's largest employers, with almost 3% of the total Danish workforce depending on Novo Nordisk.

Investment in R&D
The Novo Nordisk's foundation invests in grants for health and life sciences, mostly within Denmark. The company invests resources in research and development activities, collaborating with academic institutions and research organizations in Denmark and worldwide. This investment drives scientific advancement and stimulates economic growth through partnerships and knowledge exchange.

Economy
About 30% of Novo Nordisk's investors are Danish, 28% of shares (and 70% of the voting rights) belong to the Novo Nordisk Foundation. The foundation invests into grants for health and life sciences, mostly within Denmark. It is the most widely held stock in Denmark. Novo Nordisk is the biggest contributor to Danish corporation tax. In 2022, it handed over 9 billion krone (about $1.3 billion) in corporate tax. Kalundborg’s GDP (where the company’s new research facility is located) grew by 27% in 2022, more than any other Danish municipality. The next highest growth was in Gladsaxe, a city where Novo Nordisk is headquartered. It is followed by Hillerød, where another manufacturing site is located, and Ballerup, where Måløv, Novo Nordisk's site near Copenhagen, is located. These four municipalities accounted for two-thirds of the total increase in national GDP. In 2022, two-thirds of economic growth in Denmark was driven by the pharmaceutical industry: it grew by 1.9 percent, with 1.7 percent by the pharmaceutical industry. The company’s revenue was about 10 times larger than the next largest Danish pharmaceutical company, Lundbeck.

In August 2023, Novo Nordisk’s market value exceeded the size of the Danish economy.

Exports
Novo Nordisk is one of the biggest exporters in Denmark. The company's products are distributed globally, generating big revenue and adding to the country's trade balance. Danmarks Nationalbank has to keep interest rates at a lower rate than the European Central Bank to stop the Danish krone from appreciating excessively in value, as it is loosely pegged to the euro. The company brought about $5.7 billion in the first half of 2023, due to which Danish krone has driven up the value of the currency, which in turn has allowed Denmark’s central bank to keep interest rates lower.