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July 30th, 2024

Ozempic's biggest side effect: Turning Denmark into a 'pharmastate'?

Novo Nordisk's Ozempic has boosted Denmark's economy, with sales up 60% and significant job creation. However, reliance on the company raises concerns about economic stability and potential future challenges.

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Ozempic's biggest side effect: Turning Denmark into a 'pharmastate'?

Novo Nordisk's diabetes drug Ozempic has significantly impacted Denmark's economy, with its sales increasing over 60% in the past year. The company has become the largest in Europe, with its net profit more than doubling from 2019 to 2023. This growth has led to a situation where nearly 20% of new jobs in Denmark are linked to Novo, and its success has been crucial in preventing a recession. However, this reliance on a single company raises concerns about economic stability, reminiscent of "Dutch disease," where a booming sector can harm other parts of the economy. The Danish krone has been affected by Novo's foreign sales, prompting the central bank to maintain low interest rates to stabilize the currency.

Economists warn of a potential "Nokia trap," referencing Finland's past reliance on Nokia, which led to economic decline when the company faltered. While Novo's current position seems secure, challenges such as potential price controls and expiring patents could threaten its growth. Danish policymakers are aware of these risks and are monitoring the economy closely to ensure that growth is not solely dependent on Novo. They are taking steps to diversify the economy and avoid complacency, recognizing that while Novo's success is beneficial, it also poses significant risks if not managed properly.

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AI: What people are saying
The comments reflect a range of opinions on Novo Nordisk's Ozempic and its impact on the economy and healthcare.
  • Concerns about profit distribution, particularly regarding Pharmacy Benefit Managers in the US.
  • Discussion on Novo Nordisk's size and its dominance in the market, making competition challenging.
  • Speculation about the future availability of Ozempic and potential competition from generic manufacturers.
  • Criticism of the notion that Novo Nordisk is solely responsible for economic recovery in Denmark.
  • Reflections on societal tendencies to seek expensive solutions rather than addressing root causes of health issues.
Link Icon 12 comments
By @mrweasel - 9 months
One notable thing with Novo Nordisk, they do not attempt hide profits in tax heavens or use loop holes in Danish tax laws.

The issue with the suggestion in the article, having other companies grow faster, is that Novo is monstrous in size, easily one of Europe's most valuable companies. Catching up is an almost impossible task, as is leveling up any number of smaller companies to sizes that collectively could rival Novo Nordisk.

By @qwerty456127 - 9 months
> Ozempic is proving to be a powerful growth engine. Its worldwide sales have increased by over 60% in the past year alone.

For what I know its sales are only limited by how much they can produce. Figuratively everybody everywhere wants Ozempic but the supply is limited and the prices are too high (could be even higher though - people would still buy).

By @0cf8612b2e1e - 9 months

  …and Novo's patents on Ozempic expire within a decade, at which point it will probably have to fight against a wave of competition from generic-drug manufacturers.
Massive understatement. Every biotech with the capability is already building out a pipeline to produce a generic or their own GLP drug. There is too much money at stake that everyone is going to want to grab a share. Which is going to make prices crumble for producers.
By @beautifulfreak - 9 months
Who makes the real profit on Ozempic/Wegovy? In the US, that would be Pharmacy Benefit Managers, who are middlemen between drugmakers and US health insurance companies. They have no shame in the exorbitant amounts they mark up prices. https://www.youtube.com/watch?v=QYP5urTEWIA
By @torginus - 9 months
While I'm shameful to admit my knowledge comes from that South Park episode, it does make a good point - manufacturing semaglutide can be done by a million places and labs, why would brand-name medication maintain its markup, when a billion competitors can and will sell you the same thing at a very thin profit margin?
By @deterministic - 9 months
Ozempic is not a long term solution. Studying nutrition, changing your diet to be healthier, and making sure you are on track by getting regular full panel blood tests is.
By @andrewstuart - 9 months
I wonder how long till Ozempic or Mounjaro or some alternative is freely available for anyone to walk into a pharmacy and buy off the shelf.

2 years?

5 years?

10 years?

By @sharpshadow - 9 months
The whole story is so epic in so many ways. South Park picked it up recently too, fun episode.
By @akira2501 - 9 months
> without the contribution of the pharma sector. In other words, the company has almost single-handedly rescued the country from a recession.

Fallacious thinking. It entirely ignores that labor is a market. If Novo Nordisk didn't exist, the labor would be used elsewhere, and who's to say that if used elsewhere it wouldn't be more profitable?

For all we know Novo Nordisk drastically under performs given the inputs and is actually holding the country back.

Disappointing seeing PR clap trap like this uncritically repeated by NPR.

By @chmod775 - 9 months
The fact that people who are spending too much money on food would spend even more money to buy a weight-loss drug rather than get their food-intake under control, saving money, is an indictment of our species if I've ever seen one. At least it's supposed to decrease food cravings, so you might at least save some...

Yet for some reason our species loves to come up with the most convoluted and expensive band-aid solutions rather than fixing a problem at its root. You can see the same with the whole atmospherical carbon-capture nonsense.