Luxury Empire LVMH Loses Europe's Market Cap No.1 to Danish Pharmaceutical Company

Danish pharmaceutical company Novo Nordisk has surpassed luxury group Louis Vuitton Mo?t Hennessy (LVMH) to become the largest company by market capitalization on the European stock market.

On the 4th (local time), Novo Nordisk, listed on the Danish stock exchange, closed at 1,310.80 kroner, up 0.74% from the previous session. Its market capitalization reached $428 billion (approximately 565 trillion won) in dollar terms, marking the first time it topped the European stock market by market cap based on the closing price.

On the same day, LVMH, listed on the French stock exchange, closed at 772.60 euros, down 0.41%. Its market capitalization was 383 billion euros, or $419 billion (approximately 553 trillion won) in dollar terms, dropping to second place.

[Image source=Reuters Yonhap News]

This is the first time Novo Nordisk has reached the number one spot in market capitalization on the European stock market. The news that the globally popular obesity treatment drug "Wegovy" was launched in the UK following the US, Norway, Denmark, and Germany acted as a positive factor for the stock price. Founded in Denmark in 1923, Novo Nordisk holds over 50% market share in the obesity treatment market and more than 30% in the diabetes market. Sales from the obesity and diabetes segments account for about 88% of total revenue.

Earlier, on the 8th of last month, when research results showed that Wegovy not only treats obesity but also reduces the risk of cardiovascular disease, Novo Nordisk’s stock price surged more than 17% in a single day. According to Novo Nordisk’s own research, a clinical trial conducted over up to five years involving 17,604 adults aged 45 and older who were overweight and had cardiovascular disease showed that Wegovy reduced the risk of heart attack, stroke, and cardiovascular death by 20%.

Thanks to the popularity of Wegovy, known as the obesity injection favored by Tesla CEO Elon Musk and Hollywood stars, the company’s stock price has surged sharply this year. Since the beginning of the year, Novo Nordisk’s stock price has risen by 40% (based on the closing price on this day), significantly outperforming LVMH’s 14% increase.

LVMH, which had seen its stock price soar on expectations of economic reopening in China, the largest consumer of luxury goods, became the first European company to surpass a market capitalization of $500 billion in April. However, its recent performance has been weak as earnings fell short of expectations.

This content was produced with the assistance of AI translation services.