Equities

Novo Nordisk HQ Fire Extinguished, Shares Fall 2.7%

Novo Nordisk shares dip 2.7% after second fire in a week at 19,000 sq ft Danish headquarters building.

By Mackenzie Crow

5/23, 03:41 EDT
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Key Takeaway

  • Novo Nordisk's headquarters in Bagsvaerd, Denmark, experienced a significant fire affecting a 19,000 sq. ft. office building; no injuries reported.
  • Shares of Novo Nordisk fell 2.7% following the incident but remain up 31% year-to-date due to strong performance of Wegovy and Ozempic.
  • The fire follows another recent incident at their Kalundborg manufacturing hub; authorities are investigating the cause with no criminal indications so far.

Fire Incident at Novo Nordisk Headquarters

A significant fire broke out at Novo Nordisk A/S's headquarters in Bagsvaerd, Denmark, on Wednesday, marking the second such incident for the company within a week. The blaze started outside a building and spread to an adjacent office structure. The affected building, which spans 1,800 square meters (19,000 square feet), is not used for production purposes. According to Rasmus Storgaard, chief of the local fire service, the fire was brought under control by midnight, but the building is "not able to be saved." The main headquarters building was not affected, and there were no injuries reported.

Authorities are set to conduct a final inspection on Thursday morning. The cause of the fire has not yet been established, and it could take several days or weeks to determine. For now, there are no indications that it was a criminal act, according to local police. The fire also affected visibility on a nearby motorway, prompting evacuations of people in surrounding buildings as a precaution.

Impact on Novo Nordisk Shares

Following the news of the fire, shares of Novo Nordisk fell as much as 2.7% before recovering slightly. Despite this dip, the stock remains up 31% year-to-date, bolstered by the success of its weight-loss and diabetes drugs, Wegovy and Ozempic. These treatments have transformed Novo into Europe’s most valuable company. The fire incident comes on the heels of another fire that occurred on May 16 at Novo’s manufacturing hub in Kalundborg, where the company is investing over $8 billion to boost production.

Firefighting Efforts and Safety Measures

Approximately 100 firefighters were on site to combat the "massive fire," according to Martin Kjaersgaard, the local fire service chief of operations. The smoke from the fire has been confirmed as non-toxic, and there have been no reported injuries. Broadcaster TV2 provided images and video clips showing fire trucks arriving at the site and firefighters using drones to assist in extinguishing the fire. The images displayed intensifying clouds of smoke, although no flames were visible. A mobile crane was brought in to help clear equipment and the partly collapsed roof, allowing service officers access to pockets of fire around the structure.

The building, which housed cooling equipment, offices, meeting rooms, and a laboratory, will be removed, Novo said. "All activity in the impacted area is expected to be back to normal tomorrow," the company added.