Danish PM downplays concerns over Novo Nordisk’s dominance amid booming economy

Danish Prime Minister Mette Frederiksen has dismissed concerns about the economic risks of Novo Nordisk’s rapid growth. Despite comparisons to Finland’s past dependence on Nokia, Frederiksen stressed Denmark’s diverse industries and strong economy, providing stability that goes beyond the pharmaceutical giant.

Danish PM confident of economic stability despite Novo Nordisk’s rapid growth and global dominance

Denmark’s Prime Minister Mette Frederiksen has expressed pride in the country’s prominent corporations and dismissed concerns that a potential decline at pharmaceutical giant Novo Nordisk A/S would cause economic instability in Denmark. Novo’s rapid growth, fueled by its weight-loss programs, has catapulted it to the position of Europe’s most valuable company, according to Fortune. That has raised concerns about Denmark’s dependence on the company and drawn comparisons to Finland’s economic woes following Nokia’s collapse in the early 2000s.

The Nokia comparison was rejected by Frederiksen, who argued that Novo’s dominance did not pose a serious threat to the economy. In an interview with Bloomberg Television, she attributed the strength of Denmark’s economy to its diverse range of growing industries and highly skilled workforce. “I am extremely proud that Denmark has produced significant, global corporations.” Frederiksen stated, “I don’t see many threats, despite the size of some companies, because we have a strong economy in other sectors.” However, she stressed the importance of vigilance in maintaining this stability, stating, “But of course we have to monitor it.”

Novo Nordisk strengthens Denmark’s economy, but diversified industries ensure country’s sustainable growth

Novo Nordisk, a long-time fixture in the Danish economy, has seen its fortunes rise significantly thanks to the success of its diabetes drug Ozempic and weight-loss drug Wegovy. The company’s recent growth has further boosted the country’s economy, with multibillion-dollar factory expansions in the United States, France and Denmark. The Danish pharmaceutical sector accounted for almost half of the country’s GDP growth in 2022, with Novo playing a significant role.

However, Novo Nordisk is not Denmark’s main source of income. In 2023, the pharmaceutical industry accounted for 6.7% of GDP, while other key sectors such as financial services (5.4%) and construction (5.1%) made significant contributions. Denmark is also home to key global players, including freight forwarder DSV A/S. In a deal worth €14.3 billion ($16 billion), DSV A/S recently strengthened its position as one of the world’s largest logistics companies by acquiring a unit of Deutsche Bahn AG. Brewer Carlsberg A/S, shipping giant AP Moller-Maersk A/S, wind turbine manufacturer Vestas Wind Systems A/S and toy maker Lego are all well-known Danish corporations.

Frederiksen identified Denmark’s broad export portfolio, emphasizing that it includes a number of industries that are less subject to business cycles than other nations. “Our country is not going to get bigger,” she noted, “but we should still want our companies to.”