Novo Nordisk, the company responsible for manufacturing Ozempic, became the most valuable company in Europe last Friday (1), with a market value estimated at almost US$425 billion, according to data from Refinitiv.

To occupy the first position on the list, the company needed to displace LVMH, which is the largest luxury retailer in the world and has brands such as Louis Vuitton and Dior in its portfolio.

Novo Nordisk's success is mainly due to its weight loss medicines. Ozempic, the most popular, is a self-injectable pen that was created with the purpose of treating diabetes, but went viral due to its weight loss effects.

Another product from the Denmark-based pharmaceutical company that is increasingly attracting market attention is Wegovy, which works in the same way as Ozempic, but was developed specifically to treat obesity.

Wegovy was recently approved by Anvisa and should arrive in Brazil next year. However, in the markets where it already circulates, such as the United States, Denmark and Norway, the medicine is already in high demand and has gained the spotlight among celebrities.

The success of the medicines among the public pleases investors and boosts Novo Nordisk's shares. The numbers draw attention:

In 2023 so far, the company's shares have already risen 39.52%;
In the 12 months, the increase is 84.46%;
In five years, Novo Nordisk shares have already soared 298.42%.
LVMH, on the other hand, is not in its best days. The company — which lost the top spot to the pharmaceutical company and is now the second most valuable company in Europe, with a market value of around $420 billion — is suffering from the slowdown in the Chinese economy.

Although the luxury fashion retailer is European, a large part of its customers are Asian — especially from China, which has the second largest population in the world, with 1.425 billion people.