Photo/Novo Nordisk Website

Novo Nordisk, a Danish pharmaceutical company founded in 1923, has made headlines once again this week. On January 31st, the company became the second European company to reach a market capitalization of $500 billion, following LVMH. As of this writing, the company's stock price is $115.79 per share, and its market capitalization is $515.97 billion.

The company's flagship weight loss drugs have propelled it to new heights. According to the financial report released on January 31st, Novo Nordisk's revenue in 2023 increased by 31% year-on-year, of which the total sales of semaglutide products, including Ozempic (used for the treatment of type 2 diabetes and obesity) and Wegovy (used for weight management in obese patients), increased by 88.78% year-on-year. In terms of single products, Wegovy's full-year revenue increased by 407%!

As can be seen from the financial report data, Ozempic and Wegovy are not only the knockout products that have changed the fate of Novo Nordisk, but also the game-changers in the industry. And this is all thanks to a bold decision made by Lars Fruergaard Jørgensen, the company's global president and CEO.

According to the Financial Times, shortly after taking over as CEO of Novo Nordisk in 2017, Jørgensen made a decision that laid the groundwork for the Danish pharmaceutical company's subsequent rise.

At that time, the company had not yet launched Ozempic, and it was still a long way from being approved for weight management in obese patients. The management team was discussing whether to conduct an expensive trial to prove whether Wegovy could reduce the risk of heart disease and stroke.

Executives were filled with questions: "Why should we take such a high risk ? If we don't find anything wrong with obesity, wouldn't the hundreds of millions of dollars spent on the trial be wasted?"

But Jørgensen approved the trial. In the end, his gamble paid off. Preliminary trial data released in August 2023 showed that patients taking Wegovy had a 20% lower risk of cardiovascular events, such as heart attack or stroke, than those taking a placebo.

It has long been recognized in the industry that weight loss can generally improve heart health, but no safe and effective weight loss drug has been shown to reduce specific risks. The success of Wegovy proves that weight loss drugs can not only help people lose weight, but also prevent heart disease, stroke or heart-related death. The Associated Press said this could change the perception of new weight loss drugs as cosmetic drugs and put pressure on health insurance companies to cover them.

This success has given Novo Nordisk wings. In September of last year, Novo Nordisk quietly surpassed LVMH to become the most valuable listed company in Europe, ending the latter's two-and-a-half-year reign at the top.

Lars Fruergaard Jørgensen is a man of few words. He was born in 1966 on a pig farm in Jutland, Denmark. "It was there that he learned to take responsibility from an early age," according to foreign media reports.

Jørgensen is tall and thin, with a thoughtful appearance. He is a stark contrast to the traditional image of a deal-making CEO. He began his career as an economist in Novo Nordisk's healthcare and planning department.

In 1991, after completing his studies in finance and business, Jørgensen joined Novo Nordisk through a graduate program. He has worked for the company in the United States, Japan, and the Netherlands. He took over as CEO of Novo Nordisk in early 2017, a position he has held for seven years.

Jørgensen reportedly drives an electric car to work and kayaks on a lake near his home to think. He doesn't claim that his company's products can be a panacea for social ills, like some Silicon Valley executives do. But he believes that his company and the industry have "a huge opportunity to impact the world."

The success of Wegovy and Ozempic has also led to Jørgensen being named Person of the Year 2023 by the Financial Times. He now faces unlimited business opportunities - Canadian investment bank BMO estimates that the (diabetes and weight loss drug) market could be worth $130-140 billion annually at its peak. Norwegian investment management company Norges Bank Investment Management predicts that Novo Nordisk and Lilly, as major players in the market, are both likely to become members of the trillion-dollar club.

However, Jørgensen also faces huge challenges. According to the Financial Times, the company is still struggling to expand the supply of Wegovy. While the potential patient population is huge, some health insurance companies are reluctant to pay for it.

In addition, these drugs risk exacerbating health inequalities. Wegovy is priced at $1,300 per month in the United States, but the net cost is typically about half that, and even lower in Europe. If insurance coverage is not expanded in the United States, or if public health systems in Europe do not make the drug more widely available, it will be out of reach for many of the poorest people.