Danish PM Downplays Concerns Over Novo Nordisk’s Dominance Amid Economic Growth Surge

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

Danish PM Confident in Economic Stability Despite Novo Nordisk’s Rapid Growth and Global Dominance

Danish Prime Minister Mette Frederiksen expressed pride in the country’s leading companies and dismissed concerns that a possible collapse of pharmaceutical giant Novo Nordisk A/S would lead to economic instability in Denmark. Novo’s rapid growth, fueled by its weight-loss treatments, has made it Europe’s most valuable company. LuckThis has raised concerns about Denmark’s dependence on the company and has been compared to Finland’s economic difficulties after Nokia’s decline in the early 2000s.

The comparison with Nokia was rejected by Frederiksen, who argued that Novo’s dominance did not pose a significant threat to the economy. In an interview with Bloomberg Television, he attributed the strength of Denmark’s economy to a variety of thriving industries and a highly skilled workforce. “I am extremely proud that Denmark has produced significant, global companies,” Frederiksen said. “Despite the size of some companies, I don’t see much risk because we have a strong economy in other sectors.” But he stressed the importance of being careful to maintain that stability, adding, “But of course we have to monitor that.”

Novo Nordisk Revitalizes Denmark’s Economy, But Diverse Industries Keep Country’s Growth Steady

Novo Nordisk, a longtime member of the Danish economy, has seen its fortunes rise significantly thanks to the success of its diabetes treatment Ozempic and weight-loss drug Wegovy. The company’s recent growth has further boosted the domestic economy and led to multibillion-dollar factory expansions in the U.S., France and Denmark. Denmark’s pharmaceutical sector is set to account for nearly half of the country’s GDP growth in 2022, a figure Novo has significantly influenced.

However, Novo Nordisk is not Denmark’s primary source of income. In 2023, the pharmaceutical industry will account for 6.7% of GDP, while other critical sectors such as financial services (5.4%) and construction (5.1%) make significant contributions. Denmark also load and shipping company DSV A/S. In a 14.3 billion-euro ($16 billion) deal, DSV A/S strengthened its position as one of the world’s largest logistics firms by recently acquiring a unit of Deutsche Bahn AG. Notable Danish companies include Brewer Carlsberg A/S, shipping giant AP Moller-Maersk A/S, wind turbine maker Vestas Wind Systems A/S and toymaker Lego.

Frederiksen described Denmark’s extensive export portfolio, emphasizing that it covers a wide range of industries that are less sensitive to business cycles than other nations. “Our country will not grow any more,” he noted, “but we must want our companies to do so.”