Danish drugmaker Novo Nordisk unseated LVMH  as Europe's most valuable listed company on Friday, ending the French luxury group's 2-1/2 year-long reign at the top.

LVMH, the world's biggest luxury retailer, has been hurt by growing concerns about the outlook for the Chinese economy.

Novo is meanwhile riding a wave of demand for its highly effective diabetes and weight-loss drugs Ozempic and Wegovy, which has sent its earnings and shares to record highs.

Its shares have risen around 17% since it announced on Aug. 8 that a large study had shown Wegovy also had a clear cardiovascular benefit, boosting the company's hopes of moving beyond its image as a lifestyle drug.

As of Friday's close, Novo Nordisk had a market capitalisation of around $424.7 billion including unlisted stock, according to Refinitiv data and company disclosures of its share count.

French-listed LVMH had a market cap of $420.1 billion, having been Europe's biggest listed company since February 2021 when it knocked consumer goods group Nestle off the top spot.

23-year timeline of Europe's largest company 23-year timeline of Europe's largest company

Novo's share price has roughly tripled in the past three years while that of LVMH, home to fashion labels Louis Vuitton and Dior, has doubled.

"Novo closing in on LVMH as Europe's biggest market cap stock is a reflection of Novo's recent product success while LVMH's recent trends have been more mixed," said Marcel Stotzel, co-portfolio manager of Fidelity European Fund and Fidelity European Trust.