Denmark revises GDP growth lower as key exporter Novo Nordisk struggles
Denmark’s economic growth has been revised lower amidst a slump at the country’s largest company, Novo Nordisk.
According to Statistics Denmark on Tuesday, the country’s second-quarter GDP growth was revised down to 1% from the previously reported 1.3%, due to updated foreign trade data. The revision follows recent forecast cuts from both the Danish central bank and the government, both citing a pharmaceutical export slowdown as a partial driver.
With a population around 6 million, the Danish economy leans heavily on pharma giant Novo Nordisk, which briefly saw its market cap surpass Denmark’s GDP back in May thanks to blockbuster diabetes and obesity drugs Ozempic and Wegovy. But slower-than-expected sales growth and intensifying competition in the weight-loss drug space are now squeezing Novo’s financials — with the company planning to cut about 11% of its workforce.
Danish newspaper Borsen reported yesterday that some employees are forced to accept demotions or pay cuts to keep their jobs, while new hires had their contracts cancelled last month.
Still, despite Novo’s more recent troubles, Statistics Denmark said much of Q2’s growth was still driven by the pharmaceutical industry.
Novo’s shares slipped more than 3% in Copenhagen trading Tuesday, with the ADR down 2.5% in early trading in the US. The stock has shed nearly 40% of its value in the year-to-date.
With a population around 6 million, the Danish economy leans heavily on pharma giant Novo Nordisk, which briefly saw its market cap surpass Denmark’s GDP back in May thanks to blockbuster diabetes and obesity drugs Ozempic and Wegovy. But slower-than-expected sales growth and intensifying competition in the weight-loss drug space are now squeezing Novo’s financials — with the company planning to cut about 11% of its workforce.
Danish newspaper Borsen reported yesterday that some employees are forced to accept demotions or pay cuts to keep their jobs, while new hires had their contracts cancelled last month.
Still, despite Novo’s more recent troubles, Statistics Denmark said much of Q2’s growth was still driven by the pharmaceutical industry.
Novo’s shares slipped more than 3% in Copenhagen trading Tuesday, with the ADR down 2.5% in early trading in the US. The stock has shed nearly 40% of its value in the year-to-date.
