Denmark’s economy is buoyed by Novo Nordisk’s success, with 3.5% growth last year. However, Novo’s struggles in the US weight-loss market caused its market value to plummet by almost $100 billion, leading to concerns about layoffs and economic impact.

Danish households lost $5.8 billion in stock portfolios due to Novo’s decline, affecting private consumption. Economists warn of broader consequences, including reduced exports and GDP growth if Novo continues to struggle.

Novo’s setbacks have sparked worries about Denmark’s reliance on the company and potential economic repercussions. Despite concerns, Prime Minister Frederiksen downplays comparisons to Nokia’s impact on Finland, highlighting Denmark’s diversified economy.

A sustained Novo slowdown could limit funding for research, healthcare, and social programs, impacting 9,500 scientists supported by the Novo Nordisk Foundation. Novo’s dominance raises concerns of overreliance on a single company and potential economic vulnerability.

Novo’s impact extends beyond financial markets, affecting job growth and local communities. Layoffs could hit key Novo hubs, impacting suppliers and contractors. Despite Novo’s significant role in Denmark’s economy, officials believe the country is better positioned to weather any downturn.

Read more at Yahoo Finance: Denmark’s economy runs on Novo. Will the drugmaker’s troubles slim it down?