The success of Novo Nordisk, the drugmaker behind the blockbuster diabetes and weight-loss drug Ozempic, was more than just a source of national pride for Denmark. It was a substantial economic force.
Fueled by millions of American prescriptions for Novo Nordisk’s medicines, the Danish economy has outshined those of its European neighbors. The pharmaceutical industry’s exports kept the country out of a recession for two years.
But now, Novo Nordisk is retrenching and cutting jobs after a big profit warning — and it’s casting a shadow over Denmark’s economy.
“They are growing at a much slower pace,” said Jens Naervig Pedersen, an economist at Danske Bank. “And given their size, it’s something that means the Danish economy will grow at a slower pace.”
Large companies, particularly manufacturers, have long been the defining economic force in many towns and cities. The livelihoods of people in those communities could wax and wane along with that of a local factory. But it is rare for a single company to make such an imprint on a national economy.
The Danish pharmaceutical industry, which is dominated by Novo Nordisk, accounted for 11 percent of the economy’s growth by the end of last year, according to a measure of the economy by the nation’s statistics office, up from 4 percent in 2019. Hiring by Novo Nordisk also represented a fifth of employment growth in 2023, while it was the largest single contributor to corporate tax revenues.
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The post Novo Nordisk’s Woes Are Slimming Denmark’s Economic Growth appeared first on New York Times.
