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LONDON (Reuters) -Danish drugmaker Novo Nordisk (NYSE:NVO) briefly unseated LVMH as Europe’s most valuable listed company in intraday trading on Friday, ending the French luxury group’s 2-1/2 year-long reign at the top.
LVMH, the world’s biggest luxury retailer, has been hurt by growing concerns about the outlook for the Chinese economy.
Novo Nordisk meanwhile is riding a wave of sky-high demand for its highly effective diabetes and weight-loss drugs Ozempic and Wegovy, which has sent its earnings and shares to record highs.
At 0843 GMT, Novo Nordisk had a market capitalisation of $421 billion including unlisted stock, according to Refinitiv data and company disclosures of its share count.
The French-listed LVMH had a market cap of $420.97 bln at the same time, having been Europe’s biggest listed company since February 2021 when it knocked consumer goods group Nestle off the top spot.
Novo Nordisk said earlier in August that a large study had shown that its highly effective obesity treatment also had a clear cardiovascular benefit, boosting the company’s hopes of moving beyond its image as a lifestyle drug.
Its share price has roughly tripled in the past three years while LVMH, home to fashion labels Louis Vuitton and Dior, has doubled.
“Novo closing in on LVMH as Europe’s biggest market cap stock is a reflection of Novo’s recent product success while LVMH’s recent trends have been more mixed,” said Marcel Stotzel, co-portfolio manager of Fidelity European Fund and Fidelity European Trust.
Stotzel said both stocks remain key holdings in its funds.
