Denmark’s Recent Economic Boom Powered by Ozempic

This week I was tasked with delving into Denmark's current events and how it connects to our program discussions and topics! I was inspired by my interest in the pharmaceutical industry as well as the mechanisms of a social welfare state and how they are interconnected. Read my post below!

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The surge in demand for this drug has emerged as the primary driver behind Denmark's recent economic expansion. In a recent New York Times article, Eshe Nelson outlines the transformative impact of Ozempic and weight loss drugs on Denmark’s Economy. Jonas Dan Peterson, a chief advisor at Denmark’s national statistics agency, states that 1.7% of the overall 1.9% economic growth this past year can be attributed to pharmaceutical industries. This growth can be largely owed to Novo Nordisk, a Danish pharmaceutical company aimed at defeating diabetes through their particular drugs Ozempic and Wegovy.

Both Ozempic and Wegovy share the same ingredient of semaglutide. The difference is in the dosage, which determines what each medication is prescribed for. Ozempic is primarily for type 2 diabetes patients and Wegovy is mainly prescribed for overweight or obese patients, however, both medications have been in high demand for weight loss purposes. While Ozempic is subsidized, Wegovy is not. Ozempic isn't approved for weight loss, but because of the subsidization, people have been using it as an alternative to Wegovy, resulting in both drugs being in high demand.

Here is where we begin to see cracks in Denmark's welfare system. The welfare state has a level of dependency on citizens prioritizing collective social equality over individual gain or greed, establishing a bedrock of trust between the state and its citizens. Exploitation of Ozempic's subsidy has exposed the system's fragility, leading to a significant shortage of medication for diabetic patients. This not only caused an increase in cost but also forced the government to place funds into essential medications for diabetic patients. The demand was so great, that it placed Novo Nordisk and pharmaceutical industries in the driver’s seat for Denmark’s economic growth.

While medication prices soar and healthcare accessibility changes, pertinent questions arise: Where are the checks and balances on large corporations such as Novo Nordisk? Where is corporate accountability and transparency, and who is responsible for it? How do private corporations fit into this public healthcare system? As Denmark's economic landscape continues to be shaped by the pharmaceutical sector, it not only challenges the social responsibilities of both pharmaceutical industries and public health systems but also prompts critical questions about the mechanisms of a social welfare system.

Work Cited:

Nelson, Eshe. “How Ozempic and Weight Loss Drugs Are Reshaping Denmark’s Economy.” The New York Times, The New York Times, 28 Aug. 2023, www.nytimes.com/2023/08/28/business/denmark-ozempic-wegovy.html.

Cooban, Anna. “How Soaring Demand for Ozempic and Wegovy Is Altering Denmark’s Economy | CNN Business.” CNN, Cable News Network, 21 Aug. 2023, www.cnn.com/2023/08/21/business/ozempic-wegovy-demand-denmark-economy/index.html.