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Investing.com -- Novo Nordisk A/S’s downturn could further weaken Danish consumer confidence as the drugmaker’s plummeting shares may intensify economic pessimism, Denmark’s fiscal watchdog warned Tuesday.
The pharmaceutical company, known for its obesity and diabetes medications that have driven Denmark’s economic growth, reduced its 2025 forecast earlier this year. This led to "substantial" drops in the local stock market, according to the Danish Economic Councils’ latest report.
Novo Nordisk shares have fallen more than 40% in 2025, pulling down the Copenhagen benchmark index and making it one of Europe’s worst-performing markets this year.
"Such a development risks distorting the picture of the Danish economy’s true condition and could lead to greater consumer restraint than the underlying economic fundamentals justify," the watchdog stated.
The councils noted that recent layoffs at the company will likely result in "a more subdued employment trend in the near term." They added that "combined with lower sales expectations from the company, this is likely to have spillover effects on several other industries that supply the pharmaceutical sector."
Despite these challenges, the councils maintain a positive outlook for Denmark’s overall economy, projecting that total employment will remain strong. They forecast workforce growth of approximately 34,000 people in 2025, with GDP expected to increase by 2.1%.
The report highlighted the Danish economy’s resilience "to the significant international punches in recent years," noting that inflation remains stable below 2% and public finances are in surplus.
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