Europe’s largest company, Novo Nordisk, has dismissed concerns over the potential impact of Donald Trump’s proposed tariffs, even as sales of its weight-loss drug, Wegovy, nearly doubled.
Since taking office, President Trump has introduced tariffs on goods from Mexico, Canada, and China, with plans to extend these to the EU. Last month, Lars Fruergaard Jørgensen, CEO of Novo Nordisk, joined other Danish business leaders in talks with the government about Trump’s threats to claim Greenland, a territory of Denmark.
When asked about the tariffs, Jørgensen expressed confidence, stating that while Novo Nordisk is not “immune,” its business is well-positioned to handle the challenges posed by the new US administration. His comments came as the company reported an 86% increase in sales of Wegovy last year. The company also saw a 26% rise in revenue from its other major drugs, Ozempic for obesity and diabetes.
These strong sales helped Novo Nordisk reach a total revenue of 290 billion kroner (£32 billion), a 26% increase from the previous year. However, the company forecasts slower growth in 2025, predicting an increase of between 16% and 24%.
The growing demand for its weight-loss treatments has made Novo Nordisk the most valuable company in Europe. However, it briefly lost that title to French luxury company LVMH last month after disappointing results from a trial of its next-generation obesity drug, CagriSema. The drug failed to meet its target of 25% weight loss in a late-stage trial. Despite this, Novo plans to submit the drug for regulatory approval in early 2026, a slight delay from the previously expected 2025 timeline.
Jørgensen emphasized that CagriSema is more potent than Wegovy. A new trial will test different doses and durations to better understand its potential. Recent trial data showed that participants on CagriSema lost 22.7% of their weight after 68 weeks, with 40.4% achieving a 25% weight loss.
The company also reported positive early-stage results for another new obesity drug, amycretin.
Novo Nordisk’s shares rose 4.5% following the announcement of its annual results, although they are still down 37% from a record high last June. The company bought Catalent, a drug manufacturer, for $16.5 billion (£13.2 billion) last year to expand production of its weight-loss drugs. Jørgensen said more than 45 million people are now using the company’s treatments for obesity and diabetes.
Meanwhile, Eli Lilly, a US competitor of Novo Nordisk, reported lower-than-expected sales of its obesity and diabetes drugs Zepbound and Mounjaro last month.
In separate results, British drugmaker GSK raised its long-term sales target to over £40 billion by 2031, boosted by a strong drug pipeline. The company’s shares surged by 7.6%, the largest daily gain since 2008, after it reported a 7% increase in sales to £31.4 billion last year, driven by growth in HIV and cancer treatments. However, GSK’s profits fell 34% to £3.5 billion, partly due to a $1.8 billion payout to settle thousands of US lawsuits related to its heartburn drug, Zantac, which is accused of causing cancer.
Regarding Trump’s new tariffs on imports from Canada, Mexico, and China, GSK CEO Emma Walmsley said that the tariff situation is evolving quickly, but the company has either no or minimal exposure to those countries. She also noted that medicines are typically excluded from global tariffs due to their importance for patient care.
