The pharma giant behind popular weight loss drugs Ozempic and Wegovy briefly assumed the top spot as Europe’s most valuable company on Friday, overtaking French luxury empire LVMH, according to a report.
Novo Nordisk, the Danish multinational company, saw its market capitalization surge to $421 billion during trading on Friday morning local London time, beating out the luxury retail conglomerate owned by the family of Bernard Arnault.
At the same time, LVMH, which has been Europe’s most valuable company for two-and-a-half years, had a market capitalization of $420.97 billion, according to Refinitiv data cited by the Reuters news agency.
Novo’s market capitalization also factored in unlisted shares that cannot be bought on any stock exchange.
As the European trading session went on, shares of LVMH recovered — restoring the firm to the top spot with a market capitalization of $423.9 billion.
Novo’s market capitalization was around $421.9 billion, according to Reuters.
In Feb 2021, LVMH, whose brands include Louis Vuitton, Dior, Sephora, and Dom Pérignon, dethroned Nestle, the Swiss food and drink conglomerate, to become Europe’s most valuable company.
Novo’s share price has roughly tripled in the past three years while that of LVMH has doubled.
The Danish firm’s shares have been up by some 17% since it announced last month that a large study had shown Wegovy also had a clear cardiovascular benefit, boosting the company’s hopes of moving beyond its image as a lifestyle drug.
Sales of Ozempic, a diabetes drug that doctors have been increasingly prescribing off-label to treat obesity as well as heart failure, have exploded, generating $3.2 billion in the second quarter — up from $2.1 billion in the same period last year.
Wegovy and Saxenda, Novo drugs that have been approved to treat obesity, more than tripled their combined sales to $1.6 billion in the second quarter.
Other pharmaceutical players are looking to capitalize on the anti-obesity craze.
Eli Lilly’s diabetes drug, Mounjaro, generated $980 million in sales for the second quarter — up 72% from the first quarter of this year.
Lilly’s shareholders have seen a handsome return on their investment. In the last year, Lilly’s stock has soared by more than 80%.
LVMH reported a drop in sales for the second quarter — an indication that spending on luxury retail goods among inflation-saddled Americans was on a downward keel.
Concerns about China’s weakening economy have also hurt investor sentiment towards LVMH.
Arnault and his family still boast of the second largest fortune in the world. They have a net worth valued by Bloomberg Billionaires Index at $186 billion.
With Post Wires
This story originally appeared on NYPost
