CHART OF THE DAY: Ozempic maker Novo Nordisk overtakes LVMH to become the biggest company in Europe

• Novo Nordisk is now the biggest company in Europe with a valuation of more than $425 billion.
• The biotech company has taken over luxury goods maker LVMH in market cap size.
• Novo Nordisk has seen soaring demand for its weight-loss drugs Ozempic and Wegovy.

Our Chart of the Day is a comparison between the valuations of two European companies: Novo Nordisk and luxury goods maker LVMH.

Novo Nordisk became the biggest company in Europe this week, edging out LVMH with a market valuation of $425 billion. LVMH had long held the status of Europe's largest company, but its more than 20% decline since a mid-July peak now gives it a current valuation of about $390 billion.

Novo Nordisk manufactures two popular weight-loss drugs, Ozempic and Wegovy, and soaring demand has made it difficult to keep supply readily available. The company launched Wegovy in the UK earlier this week, helping boost shares further.

Year to date, shares of Novo Nordisk are up 42%, whereas shares of LVMH are up about 12%. Investors have grown more and more bullish on Novo Nordisk as its weight-loss drugs have also been shown to have a sizable impact in reducing the chance of heart attacks in overweight patients.

On the flip side, as investors grow concerned about a US consumer that is due for a slowdown amid the restart of student loan payments, LVMH has taken a hit, as one of the first items consumers will likely cut back on, if they feel financial pressure, is spending on luxury goods.

Meanwhile, China's faltering economy, which has seen consumers there hold back on discretionary spending, is also weighing on shares of luxury companies.