Finimize - 💉China's going on Wegovy

What’s going on here?

Danish pharma giant Novo Nordisk got the go-ahead to put China on a diet on Tuesday.

What does this mean?

China isn’t just the world’s second-biggest economy, it’s also home to the most overweight and obese people globally. That makes it a prime market for Novo, maker of wildly popular weight-loss drugs Ozempic and Wegovy. Thing is, because the company was among the first to distribute the coveted insulin pens, its patent on semaglutide – Wegovy and Ozempic’s key ingredient – is set to expire in just two years in China. So determined to win over would-be slimmers while it can, Novo has managed to get its Wegovy drug approved in the country.

Why should I care?

Zooming out: Feeding frenzy.

The weight-loss drug frenzy has propelled Novo’s shares in the last year, making it Europe's most valuable listed company. That’s even shown in the Danish economy: Novo was responsible for filling a fifth of all new jobs in Denmark last year, and the furor meant the economy picked up by nearly 2% instead of essentially flatlining. And with the global weight-loss drug market expected to be worth $100 billion by the end of this decade, Novo is throwing money at new and existing manufacturing sites to keep up with the insatiable appetite for its superstar drugs. But Novo might need to move even faster if it wants to win over the Chinese market: American rival Eli Lilly’s diabetes drug Tirzepatide got the green light from China back in May.

The bigger picture: An order of sides.

Big Pharma isn't the only one embracing the weight-loss trend. Plastic surgeons performed 8% more facelifts last year than the one before, with patients complaining of loose skin after dropping weight so quickly. And worried that sugary snacks are falling out of fashion, food retailer Nestlé is rolling out new lines of high-fiber, protein-packed foods aimed at the freshly health-conscious crowd.

What’s going on here?

Denmark approved the world’s first polluting tax on agriculture this week, hoping to reduce the methane here and the methane there.

What does this mean?

Agriculture accounts for a fifth of global greenhouse gas (GHG) emissions, with animals like cows and sheep burping out methane – a much more potent gas than carbon dioxide – faster than billionaires burn through private jet fuel. And as a major pork and dairy exporter, Denmark knows that all too well. Farming is the country’s biggest source of GHG emissions, which is why the new tax could see farmers charged roughly $100 a year for each of their cows, starting in 2030. That should help the country reach a legally binding target of cutting its total GHG emissions by 70% from 1990 levels by the end of this decade.

Why should I care?

The bigger picture: One small step…

Denmark’s stake in global emissions is pretty minimal. But the country’s newly approved measure is still a milestone, not least because it might push others to follow suit. After all, just four sectors are responsible for nearly all global GHG emissions: electricity, transport, industry, and agriculture. There’s plenty being done to make the first three greener, from renewable energy to EVs and hydrogen. But so far, very few countries have tried cleaning up their farms.

Zooming out: Raised not born.

Given the rise of veganism, vegetarianism, and climate change protests, it’s no surprise that there’s pressure on the livestock industry. But for those who can’t forgo the carnivorous lifestyle, lab-grown meat could be the next dinner staple. Cultivated from animal stem cells, it removes the need to raise or slaughter animals. And according to one study, the process involves 96% lower GHG emissions, 99% less land use, and 96% lower water use than that of regular meat. But it’s very expensive – so unless lab-grown meat startups can lower prices, it'll stay out of reach for most.