The Blubber

The development of semaglutide, a key ingredient in certain medicines, has transformed its maker, Novo Nordisk, into Europe’s most valuable company, with profound implications for Denmark, its home country. Novo’s market capitalization, exceeding $570 billion, surpasses the Danish economy. Its philanthropic foundation is now the world’s largest, with assets double those of the Gates Foundation. Last year, Novo’s income tax bill in Denmark was $2.3 billion, and its investments and production growth helped the domestic economy expand by almost 2% — more than four times the EU average. This drove record government spending on defense, the green transition, and support for Ukraine, preventing stagnation in the Danish economy.

Novo’s influence permeates Denmark. Its agenda shapes educational and research priorities, and politicians weigh the company’s perspective in decisions on immigration policy and infrastructure development. While Novo has created thousands of jobs in the country, benefiting even those unaffiliated with the firm, its expansion across multiple locations promises more opportunities. Danish pension funds thrive on record returns from Novo shares, and low interest rates prevail as booming diabetes drug exports compel Denmark’s central bank to keep rates low.

Novo’s colossal impact in Denmark also poses risks, both for the company and its home market. Media scrutiny intensifies with every move, exposing Novo to public backlash and regulatory changes. A misstep could have repercussions on public finances, scientific research, and job prospects for Danish graduates.

While Novo can’t predict the full extent of its impact, CEO Lars Fruergaard Jorgensen recognizes the responsibility that comes with its influence. He likens it to the "superpowers" in Pippi Longstocking, noting, "When you have superpowers, you have super responsibility."

Novo’s outsized influence clashes with Danish culture, which values humility and discourages ostentation. The company has downplayed its status, as seen when it rented Copenhagen’s Tivoli Gardens amusement park for a private party and asked guests not to post on social media. Following debates over public spending on Novo medication, the company quietly reduced prices for Ozempic in Denmark by nearly a third.

Despite its iconic status among Danes, Novo is in a precarious position. Its continued expansion will increase its power and influence in Denmark, but any stumble could have significant effects on the country’s economy and society.