Novo Nordisk AS has demonstrated the significant impact that a company can have on the national economy.
According to media reports on Tuesday, from both a biomedical and economic perspective, the success of Novo Nordisk AS's new weight-loss drugs - Ozempic and Wegovy - is remarkable. This is not only a notable scientific breakthrough, but also a huge boon for the Danish economy, successfully helping Denmark avoid an economic recession last year.
Preliminary data released by the Danish Statistics Bureau last week showed a 2% QoQ growth in the country's GDP in the fourth quarter, following a contraction in the second quarter and a 0.7% decline in GDP in the third quarter. The bureau stated that the pharmaceutical industry was a key driver of economic expansion, with growth in private consumption also supporting the economy.
This phenomenon is not unique, as seen in the case of Nokia in Finland. Nokia once dominated the global mobile phone market to the extent that in 2000, the company's sales revenue accounted for about 4% of Finland's GDP and nearly 70% of the market value of the Finnish stock exchange. In 2013, due to a failure to keep up with new technologies, Nokia was eventually acquired by Microsoft.
Will there be more stories like Nokia and Novo Nordisk AS in the future? The answer is affirmative. Many well-governed countries with populations ranging from 5 million to 20 million provide crucial legal and economic stability for business success. With the ongoing process of globalization, these companies may one day become industry giants.
Globally, as the demand for these weight-loss drugs increases, Denmark may gradually be associated with the pharmaceutical industry. Other small and medium-sized countries, such as Sweden, the Netherlands, Ireland, Singapore, and Israel, also have the potential to foster immensely influential enterprises. In the United States, companies like Walmart in Arkansas have a significant impact on their respective state economies.

How successful is Novo Nordisk AS? A company that has helped its home country Denmark avoid decline.