Denmark’s Largest Pension Fund Bucks Trend with Bold Bet on Novo Nordisk to Turn Around in Non-US Markets

Denmark’s largest pension fund, ATP, significantly increased its stake in Novo Nordisk this year, betting that the global leader in obesity treatment can outperform competitors in markets outside the US.

 

According to ATP’s latest disclosed filings, the pension fund nearly doubled its holdings in Novo Nordisk during the first half of the year, reaching 4.81 million shares by the end of June. Based on current stock prices, this stake is valued at approximately $270 million.

 

 

In May, Eli Lilly released detailed results from a “head-to-head” study. The data showed that by week 72, Lilly’s tirzepatide achieved an average weight loss of 20.2%, compared to Novo Nordisk’s semaglutide at 13.7%.

 

In the same month, amid intensifying market competition, Novo Nordisk unexpectedly announced that its CEO, Lars Fruergaard Jørgensen, would step down, highlighting pressure from capital markets.

 

Claus Berner Moller, Vice President of Danish Equities at ATP, said in an interview: “We were fully aware of the pressure Novo Nordisk is under when we invested, but we believe the company can turn things around and get back on a growth trajectory.”

 

Moller added that, in the short term, Novo Nordisk “must rely more on markets outside the US to drive growth.”

 

Year-to-date, Novo Nordisk’s stock has fallen about 40%, primarily due to a weakening growth outlook. The company attributes its main challenges to competition from Eli Lilly and the impact of cheaper generic drugs.

 

 

To reignite growth, Novo Nordisk’s new CEO, Maziar Mike Doustdar, has vowed to reclaim lost ground, initiating a hiring freeze as a cost-cutting measure and hinting at potential layoffs in the future.

 

ATP did not disclose the purchase price, but Moller revealed that most of the stake increase occurred toward the end of the first half of 2025. He acknowledged that the stock price has since declined but believes the drop makes Novo Nordisk relatively more attractive compared to peers.

 

“It’s hard to time the exact market bottom,” Moller said. Although the stagnation in Novo Nordisk’s US business is difficult to reverse, he believes its product portfolio, especially in markets outside the US, will deliver relatively high growth.

 

In recent years, ATP has gradually reduced its investments in Danish domestic stocks, shifting toward a greater allocation to overseas equities. However, it remains one of the largest investors in the domestic market, with total holdings valued at 24.5 billion Danish kroner (approximately $3.8 billion).