A company worth more than the country its based in!

Picture a scenario where the market cap of Reliance or TATA exceeds our country’s projected GDP. A similar narrative is unfolding in Denmark with Novo Nordisk, a pharmaceutical giant.

The surge in Novo Nordisk’s shares is primarily fueled by the success of its flagship medicines: Ozempic and Wegovy. Currently, Novo Nordisk commands a market cap of $414.70 billion, marking a staggering 60% increase in the last three years

Novo Nordisk excels in developing insulins for diabetes patients. A few years ago, the company invented Ozempic, an insulin designed to control sugar levels. A notable side effect emerged during trials—patients taking Ozempic started losing weight. This revelation reverberated throughout the pharmaceutical industry

Capitalizing on this unintended benefit, Novo Nordisk introduced Wegovy, a new drug exclusively focused on weight loss and obesity. Wegovy gained significant attention, even drawing mentions from Elon Musk on Twitter.

Recent trials unveiled another benefit of Wegovy—reducing heart attacks by 20%, propelling its share price and potentially influencing insurers to cover the treatment.

The most intriguing aspect is how Novo Nordisk’s market cap has now surpassed Denmark’s GDP which is $405.6 billion, where major companies like Lego and Maersk(a major logistics and shipping giant, the brand is a common sight across all the goods trains in our country as well) have historically driven growth.

Novo Nordisk’s impact on Denmark’s economy differs significantly, primarily because a substantial portion of its sales occurs outside Denmark. Consequently, the Denmark Central Bank has maintained lower interest rates. Some economists are contemplating the need for a separate set of economic factors that exclude Novo Nordisk’s contribution.

The journey of Ozempic draws parallels with the accidental discovery of Penicillin.

Can you recall another drug or product that, like Penicillin and Ozempic, was accidentally discovered and brought about a paradigm shift?

P.S.: This is not a recommendation, and meant only for educational purposes only.


In any field most things are discovered accidentally when humans persist on respective chosen paths. Medicine is no different - https://www.miragenews.com/from-aspirin-to-viagra-accidental-medical-1038997/

As for a drug soaring up the market cap, I guess we will hear more and more in a capitalistic world placed in this age of rapidly evolving technology.

Comparing a company’s market cap with GDP, is that fair comparison? GDP is basically the income of a country, but the market cap is the overall value of a company. I guess it would be fair if we compare the economy of a country with the market cap of a company or the revenue of a company with the GDP of a country to check how big a company is.


You are absolutely right. The valuation of a company can exceed the GDP of a firm - there is a catch though, that firm needs to have sizeable revenue from outside the home country.

The valuations of companies can remain elevated for a real long time.

  1. The size of apple inc is quite near India’s GDP, in reality it makes no sense.
  2. The valuation of all adani group companies ~ 11 lakh crore, India’s M2 money supply ~ 58 lakh crore