Novo Nordisk's anti-obesity drugs boost Denmark's economy | 60 minutes

Novo Nordisk's blockbuster drugs Ozempic and Wegovy have slimmed down Hollywood stars and millions of non-celebrities around the world – while giving the Danish economy a huge boost.

Novo Nordisk now has a market capitalization of $600 billion, bringing a welcome dose of wealth to the Baltic country while creating thousands of new jobs, strengthening national pension plans and keeping mortgage rates low.

Shrinking waistlines and industries

Denmark is home to six million of the world's richest and healthiest people, and less than 1% of Novo's sales come from the country where the company was founded in the 1920s.

Novo Nordisk is investing billions in new facilities in the port city of Kalundborg on the Danish coast.

But just a few miles from the construction cranes sits a quintessentially Scandinavian institution: an elementary school that serves as an inpatient health facility for the small proportion of Danes diagnosed with obesity. Recently, the number of enrollments has fallen by almost half.

Many of these empty beds are occupied by newly hired Novo employees trying to find permanent housing.

Lars Jorgensen, who has worked as a therapist and life coach at the facility for 20 years, knew that the success of Ozempic and Wegovy could have an impact on the facility. For many, the new weight loss drugs may be the answer to their health problems, but he hopes some potential students will think twice before taking these drugs for life.

“Because they still have the problem,” he said. “Obesity is just a symptom.”

On a more macroeconomic level, Novo Nordisk's overwhelming success is causing entire sectors of the global economy to shrink. In a world where people are less hungry, fast food chains and big box stores are being forced to tighten their belts.

Wealth the Danish way

Novo Nordisk's recent success is a source of pride in Denmark. The company is the largest in Europe and its market capitalization exceeds the GDP of the entire country.

“Everyone has the feeling that this will go on forever,” said Danish neurologist and writer Peter Lund Madsen.

Madsen, who owns shares in the company, is particularly proud that Novo Nordisk is now larger than all the companies that its neighbors, the Swedes, have.

“They’ve always had cars and planes and big companies,” he said. “But now we have Novo.”