Ozempic or Tesla? Markets are in no doubt which is hotter

Novo Nordisk, the company behind Ozempic and Wegovy, has exceeded Tesla’s market capitalization, reaching $609 billion. The surge comes after positive results from an early-stage trial of an experimental weight loss drug called amycretin. Participants in the trial lost 13.1% of their weight after 12 weeks, prompting investors to flock to Novo Nordisk’s stock. The company’s success with Ozempic and Wegovy has contributed significantly to Denmark’s economy, helping it avoid a recession in 2023. Novo Nordisk is expected to continue driving growth this year. Meanwhile, Tesla has faced challenges, including increased competition and a slowdown in the demand for electric vehicles. Novo Nordisk and Eli Lilly are leading the market for weight loss drugs that replicate GLP-1, a hormone that suppresses appetite. The demand for these drugs is likely to grow as the global obesity rate increases.