The global anti-obesity drug market is growing at a rapid clip, with Morgan Stanley analysts recently predicting that it could be worth as much as $77 billion by 2030. And leading the pack among developers of these new treatments is Denmark’s Novo Nordisk, which sells the two most popular drugs being taken for weight loss, Wegovy and Ozempic.
Novo’s market value reached $413 billion in the second quarter, surpassing the total GDP of its home country by $7 billion, largely thanks to the sales of those two drugs along with its diabetes medication Ozempic, often prescribed off-label for weight loss.
But the skyrocketing demand for the drugs isn’t just impacting Novo's bottom line — it’s causing a boom in the Danish economy, as well.
As Novo receives a flood of U.S. dollars from sales of these weight loss drugs, it converts them to Danish kroner, thus strengthening the value of the kroner, according to The Wall Street Journal. And since the kroner is tied to the euro, Denmark has lowered its interest rates to weaken the currency and maintain the appropriate exchange rate.
For average Danish citizens, Novo’s economic effect means a potentially better market for buying houses, cars and other big-ticket items. However, economists warn that any new developments in the weight loss market, including the potential FDA approval of Eli Lilly and Co.’s drug Mounjaro this fall, could also sway the Danish economy.
With those prospects in mind, here’s a look at the opportunities and obstacles ahead for the market.