"Novo Nordisk is a drug company in Denmark and has been revolutionary when it comes to weight loss. The firm sells two drugs, Ozemic and Wegovy. Ozemic was originally made to treat diabetes but now people have started using the drug as a diet pill." -- Elias Wyasa, 7th grade
Novo Nordisk is a drug company in Denmark and has been revolutionary when it comes to weight loss. The firm sells two drugs, Ozemic and Wegovy. Ozemic was originally made to treat diabetes but now people have started using the drug as a diet pill. The same thing is happening with their other drug, Wegovy, which can reduce hunger, making you eat less, causing weight loss. Even while Denmark has experienced globally influential companies like LEGO, and Maersk, no one was prepared for the national economic change that Novo Nordisk is causing with these two drugs.
The company sells to a multitude of countries but has been most successful in America, mostly with celebrities. For some time now, Hollywood actors have been using Ozemic to keep them looking sharp for all their movies. With the excess of money lots of actors, such as Amy Schumer, have to buy the drug, most of them have contributed greatly to Novo Nordisk’s success. On top of that. They also give the company loads of exposure allowing more growth. This huge success for the country is changing the Danish economy in a big way. Due to the amount of money being converted from the U.S. Dollar to the Danish Krone, demand for the currency has gone up, consequently increasing the Krones’s global value according to The New York Times.
The company sells to a multitude of countries but has been most successful in America, mostly with celebrities. For some time now, Hollywood actors have been using Ozemic to keep them looking sharp for all their movies. With the excess of money lots of actors, such as Amy Schumer, have to buy the drug, most of them have contributed greatly to Novo Nordisk’s success. On top of that. They also give the company loads of exposure allowing more growth. This huge success for the country is changing the Danish economy in a big way. Due to the amount of money being converted from the U.S. Dollar to the Danish Krone, demand for the currency has gone up, consequently increasing the Krones’s global value according to The New York Times.
At the same time, this means that the banks of Denmark have to lower the interest rates in the country to balance out the increase in the Krone’s worth. This is due to the fact that as The Wall Street Journal says the Krone is pegged to the Euro. This prevents the exchange rate of the two currencies to change, meaning that the value of the Euro compared to the Krone and vice versa will always be the same. This only causes more problems for the country's banks as it is their job to make sure that the rates of exchange don’t change.
But long term, there are downsides. Economists in Denmark fear that the country could rely too much on Novo Nordisk as it’s the primary catalyst raising the value of the country’s money. According to The New York Times, they pointed to what happened with the Finnish economy in the late 1990s when Nokia lost its dominance in the cellphone industry. When this happens, the value of the country’s currency will go down but the interest rates won’t, messing up the economy in a huge way. This scenario would put Denmark in a horrible situation.
There are also concerns about the so-called Dutch disease that could come to Denmark. This refers to the economic phenomenon when a country experiences a large increase in income. This sounds great at first but the influx isn’t always great for the rest of the economy. The name, Dutch disease, first came from the Dutch in the 1960s when they discovered just how much oil they had readily available to them. This caused them to start exporting more and more. Then just like the Danish economy, that led their currency’s value to increase exponentially. The problem was that as the value of their money rose, all their exports became expensive, and it ended up hurting the Dutch economy. If this happened to the Danish economy, which economists worry it will, the Danes would be in trouble.
Meanwhile, the firm is serving more patents than ever. As The BBC reports, the firm’s CEO Lars Fruergaard Jorgensen says, “The growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before." This is a good sign, as even though some people buying Novo Nordisk’s drugs don’t have diabetes, the people that do are still getting the help they need. The only problem is that as the firm serves more and more patients, they need more and more of the drugs, and now the firm can’t keep up and are grappling with supply strains according to The BBC.
With just how much Novo Nordisk is succeeding, their share prices are going through the roof. Since the huge success of the company, more and more people are investing and the demand for Novo Nordisk’s stocks increases. Just like with the Krone, as demand goes up the value goes up, causing the price of Novo Nordisk share price to make the company one of the most valuable companies in Europe.
Meanwhile, the firm is serving more patents than ever. As The BBC reports, the firm’s CEO Lars Fruergaard Jorgensen says, “The growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before." This is a good sign, as even though some people buying Novo Nordisk’s drugs don’t have diabetes, the people that do are still getting the help they need. The only problem is that as the firm serves more and more patients, they need more and more of the drugs, and now the firm can’t keep up and are grappling with supply strains according to The BBC.
With just how much Novo Nordisk is succeeding, their share prices are going through the roof. Since the huge success of the company, more and more people are investing and the demand for Novo Nordisk’s stocks increases. Just like with the Krone, as demand goes up the value goes up, causing the price of Novo Nordisk share price to make the company one of the most valuable companies in Europe.
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