Denmark, known for its iconic brands like Maersk, Carlsberg, and Lego, has witnessed a significant transformation in recent years, driven primarily by the pharmaceutical sector. At the forefront of this economic shift is Novo Nordisk, a pharmaceutical giant that has emerged as one of Europe's most valuable companies. The company's success is largely attributed to its anti-obesity and diabetes treatments, Wegovy and Ozempic. In 2023, Novo Nordisk's influence was profound, accounting for half of Denmark's GDP growth. This surge has not only elevated the Danish economy but also reshaped the local landscape, particularly in Kalundborg, where Novo Nordisk has expanded its operations.
The discovery of semaglutide's weight-loss effect marked a pivotal moment for Novo Nordisk. Previously focused on insulin production, the company shifted its business strategy to capitalize on this breakthrough. This decision has paid off handsomely, with the pharmaceutical sector driving Denmark's GDP growth by 2.5% in 2023. The impact of Novo Nordisk's success is evident in various sectors of the Danish economy, from construction to education, and even in the nation's currency dynamics.
Novo Nordisk's production site in Kalundborg is a testament to its expansive growth. Covering 1.6 million square meters — equivalent to 224 football pitches — the site has become a hub of activity. The company has invested billions of dollars to boost manufacturing capacity, creating 1,250 new jobs and drawing 3,000 construction workers to the area. This construction boom is expected to see $8.6 billion (DKK60bn) spent on new projects in the coming years.
Kalundborg has benefited immensely from Novo Nordisk's growth. The local municipality's finances have improved significantly, thanks to the company's swelling corporate tax contributions. Investments are being made in public amenities, including a new swimming area and plans for a culture house and library. The influx of jobs and economic activity has also spurred a renewed interest in life sciences education, with a new educational campus opening to train the next generation of workers.
The company's influence extends beyond its immediate operations. Many Danes and pension funds hold shares in Novo Nordisk, making it an integral part of the national economy. The success of Novo Nordisk has also contributed to Denmark being one of the region's fastest-growing economies, with half of its GDP growth driven by the pharmaceutical sector.
However, this economic boom comes with challenges. Denmark's currency, the krone, has felt the pressure from the influx of dollars resulting from Novo Nordisk's overseas sales. Las Olsen remarked on this dynamic by noting:
"We have slightly lower interest rates than the euro area, which is a very direct result of all this money inflow." – Las Olsen
Despite these challenges, Denmark remains resilient. Jacob Funk Kirkegaard highlighted Denmark's ability to withstand external pressures:
"Of all the countries in the EU, nobody would be more resilient to US tariffs than arguably Denmark." – Jacob Funk Kirkegaard
Yet, concerns about economic influence translating into political influence persist. Carl-Johan Dalgaard expressed this sentiment:
"There's a worry that with economic influence, you might also eventually see political influence emerging, which could have policy consequences." – Carl-Johan Dalgaard
Novo Nordisk's ownership structure plays a crucial role in maintaining its Danish identity. Mette Feifer emphasized:
"If Novo Nordisk were not owned by a foundation, I don't think it would be Danish at this moment. It would have been sold 10 or 20 years back." – Mette Feifer
As Denmark navigates this economic transformation, there is cautious optimism about future relations with international partners. Prime Minister Mette Frederiksen acknowledged potential challenges:
"It has been hinted at from the US side that there may unfortunately be a situation where we work less together than we do today." – Mette Frederiksen
In Kalundborg, the local community has mixed feelings about the rapid changes. Gitte Pedersen shared her perspective on the growing opportunities and challenges:
"It will bring a lot of jobs. In a few years we'll see the difference." – Gitte Pedersen
However, she also noted the downsides:
"Sometimes I have to wait [because of the] queues and I don't like that." – Gitte Pedersen
Longtime residents like Lonny Frederiksen observed that while businesses continue to open and close as usual, there are clear benefits for younger generations:
"Businesses opening and closing, that's the same." – Lonny Frederiksen
"But young people have more opportunities today." – Lonny Frederiksen