AMERICAN DEMAND FOR weight-loss drugs is supercharging Denmark’s economy and transforming a small Danish community into an unlikely boomtown.
Two years ago, the name of the Danish firm Novo Nordisk would hardly have been recognised. But now, soaring sales of two blockbuster drugs—the anti-obesity and diabetes treatments Wegovy and Ozempic—have turned this pharmaceutical giant into one of Europe’s most valuable companies.
The drugmaker revealed in early February 2025 that its pre-tax profits jumped 22% to $17.8bn (DKK127.2bn/£14.2bn).
It has also given Denmark’s economy a major boost, making it one of the region’s fastest-growing. From new job creation to lower mortgage rates, the ripple effects of skyrocketing drug demand have been felt across the country, particularly in the small port town of Kalundborg, a community of fewer than 17,000 residents, where one of the most significant investments in Danish history is now underway.
Stepping off the train on the outskirts of Kalundborg, an hour northwest of Copenhagen, passengers are greeted by birdsong and construction noise. It’s an unlikely spot for what is now the epicentre of a global weight-loss revolution.
Across a railway bridge stand the grey, boxy buildings of Novo Nordisk’s sprawling industrial site. This is where half of the world’s insulin is made and semaglutide—the game-changing active ingredient in Ozempic and Wegovy—is produced.
Kalundborg’s mayor, Martin Damm, described the site as the centre of where the medicine starts, a vast area covering 1.6 million square metres, equivalent to the size of 224 football pitches.
A staggering $8.6bn (DKK60bn) will be spent here over the next few years, adding 1,250 new jobs to the plant’s 4,400-strong workforce. It has also attracted 3,000 construction workers to the area. Damm explains that for every job created inside the industry, three more are generated outside.
Kalundborg’s economy has seen its share of ups and downs. Once a shipbuilding centre, it thrived in the 1960s, producing Carmen Curlers, a hair roller popular in the US. Now, it is experiencing yet another boom.
Local businesses have benefitted significantly. A petrol station owner now roasts 30kg (66lbs) of pork daily for sandwiches, while a fast-food store sold 17,500 hot dogs to hungry construction workers in just over a month.
Two-thirds of Denmark’s GDP growth comes from just four boroughs, all of which host Novo Nordisk facilities. Kalundborg alone saw a staggering 27% growth rate in 2022, making it the fastest-growing area in Denmark. Unemployment, once high, is now among the region’s lowest.
Novo Nordisk’s swelling corporate tax contributions have improved the municipality’s finances, funding a public swimming area, a new culture house, and a library. More than 1,250 homes are being built, and a new motorway to Copenhagen is under construction.
However, despite the economic benefits, challenges remain. Local primary schools lag in subjects like math, and the area has a higher rate of overweight children, raising concerns among critics.
Locals expressed mixed feelings about the changes. Lonny Frederiksen, who runs a hair salon, says she hasn’t noticed much difference yet, while customer Gitte Pedersen mentions increased traffic congestion but remains optimistic about future job opportunities.
Novo Nordisk’s business was centred on insulin for a century, but the discovery of semaglutide’s weight-loss effect marked a turning point.
Wegovy and Ozempic belong to a class of drugs called GLP-1s, which help control blood sugar and suppress appetite. Ozempic was approved in the US in 2017, followed by Wegovy in 2021. They are now available in thirteen countries, including China.
Sales of the weekly weight-loss jab grew 86% last year, while Ozempic has become the world’s best-selling diabetes medicine, with 45 million people now using Novo Nordisk treatments.
More than half of Novo Nordisk’s sales are in the United States, where demand continues to soar. In the US, Wegovy costs over $1,000 (£746/€958) a month, compared to just $92 (£73/€88) in Germany. Many American insurers refuse to cover it, leading to criticism from politicians like Senator Bernie Sanders, who accused the company of price gouging.
Worldwide, around 800 million people live with obesity, and analysts estimate the weight-loss drug market could be worth $150bn (£144bn) globally by 2030. This has triggered an industry-wide gold rush, with pharmaceutical companies scrambling to develop new anti-obesity treatments.
Novo Nordisk and its American rival Eli Lilly dominate the market but are struggling to keep up with overwhelming demand. Novo Nordisk has embarked on a colossal spending spree, investing billions to expand factories in Denmark, France, and the US while acquiring three production sites from American firm Catulent.
Denmark, a country of less than six million people, has seen an outsized economic impact from Novo Nordisk’s growth. The firm contributed significantly to the country’s 2.5% GDP expansion in 2023, with the government forecasting further growth of 3% in 2024.
However, economists warn that Denmark could become too reliant on a single company, drawing comparisons to Finland’s economic slump after the decline of mobile giant Nokia. While most experts believe the risk is low, concerns remain about Novo Nordisk’s growing economic and political influence.
US President Donald Trump has threatened potential tariffs on Danish goods amid rising geopolitical tensions. Danish Prime Minister Mette Frederiksen recently met with the country’s biggest business leaders, including Novo Nordisk’s CEO, to discuss the potential impact.
Despite these uncertainties, Novo Nordisk continues to reinvest in Denmark. Its philanthropic foundation, now the world’s richest, distributed $1.3bn (£1bn/DKK9.1bn) in grants last year, funding hundreds of projects.
A new educational campus has been established in Kalundborg to train future life sciences workers. Helix Lab, financed by the Novo Nordisk Foundation, offers students hands-on research opportunities and placements with local biotech firms.
Overlooking the town’s waterfront, Costa Kalundborg Kaffe has also seen a customer surge. Its owner, New Zealander Shaun Gamble, has noticed an influx of international students and new businesses.
“There has been a change,” he says. “It’s still in its infancy, but I can feel it. In five years, it’ll be different here—in a good way.”
