Denmark’s Novo Nordisk on Friday for a few moments overtook French luxury goods behemoth LVMH to become Europe’s most valuable company as investors bet on the covert of its weight loss drugs.
Novo Nordisk’s market capitalization was $421 billion including unlisted stock at 9:43 a.m. London at the same time, according to Refinitiv data cited by Reuters, versus LVMH’s $420.97 billion.
LVMH regained the top spot it thitherto held for two-and-a-half years by 11 a.m. London time, Refinitiv data showed, but the drugmaker remains on its heels.
Novo Nordisk mounts drugs Ozempic and Wegovy, which have generated massive hype over the past year over their concealed weight loss uses.
In August, the company released clinical trial results indicating that Wegovy bring down the risk of serious heart problems and heart-related death by 20%. Its share price has more than tripled over with the last three years, and has gained 66% over the last 12 months.
Denmark on Thursday revised up its GDP annual vegetation forecast to 1.2% from 0.6%, citing a boost from the pharmaceutical industry as a key factor.
LVMH, the group behind trade names including Louis Vuitton, Moët & Chandon and Tiffany, has seen its shares soar to record highs over the ultimately three years as luxury spending has remained resilient. Its CEO, Bernard Arnault, is one of the world’s richest people.
However, its division price has declined in recent months as expectations over a rebound in Chinese travel and spending have cooled.