Novo Nordisk Foundation

Last updated
Novo Nordisk Foundation
Founded1989;35 years ago (1989) in Denmark
TypeFund
Headquarters Hellerup, Denmark
FieldsLife-sciences, natural sciences, social sciences
Endowment $167 billion USD (1,114 billion DKK) in 2022 [1]
Website novonordiskfonden.dk/en

The Novo Nordisk Foundation (NNF) is an international enterprise foundation focusing on medical treatment and research.

Contents

In 2023, the foundation had a net worth of $167 billion (1,114 billion DKK), [2] [3] making it the wealthiest charitable foundation in the world. NNF owns Novo Holdings A/S, a holding company that is the majority voting shareholder of Novo Nordisk, a Danish pharmaceutical corporation. [4]

From 2016 to 2022, the foundation distributed more than US$4.5 billion in grants for research, innovation, treatment, education, humanitarian and social purposes. [5] [6] In 2023, the Novo Nordisk Foundation awarded grants worth 9.1 billion DKK [7] (approx. $1.33 billion) [8] and paid out 5.8 billion DKK [9] (approx. $0.84 billion).

While the main focus lies within biomedicine and biotechnology research, NNF also awards grants for research in general practice and family medicine, nursing and art history.

History

In 1922, Danish professor August Krogh received permission to produce insulin in the Nordic countries. This sparked the development of new diabetes treatments and the beginning of a Danish business and export venture. Several foundations were also established which have subsequently merged into the Novo Nordisk Foundation. [10]

In recent years, the Novo Nordisk Foundation has increased its focus on innovation, diabetes treatment and grants for humanitarian and social purposes. In 2016, the Novo Nordisk Foundation awarded a little over 420 million US dollars to the Capital Region of Denmark to establish Steno Diabetes Center in Copenhagen, a diabetes treatment and research institution. [11] [12] In 2020, the Novo Nordisk Foundation established the BioInnovation Institute in Copenhagen with a €470 million grant, an independent Novo Nordisk Foundation aimed at accelerating life science start-ups. [13] [14] [15]

The Novo Nordisk Foundation is an established enterprise foundation. It is a self-governing entity with no owners, focusing on long-term ownership of the Novo Group (Novo Nordisk and Novozymes) while combining business and philanthropy with scientific, humanitarian and social purposes. The Novo Nordisk Foundation's investment activities are managed by its 100%-owned subsidiary, Novo Holdings A/S whose sole purpose is to invest the foundations wealth and ensure financial returns. Novo Holdings A/S is also the holding company for the foundation's ownership in Novo Group (Novo Nordisk and Novozymes). [16] [17] [18]

Ownership structure

The Novo Nordisk Foundation is obligated to maintain its controlling ownership in the Novo Groups two largest companies: Novo Nordisk and Novozymes.

The class A-shares in both companies (Novo Nordisk and Novozymes) are unlisted and cannot be traded. The voting weight of the A-shares are 10 times those of B-shares in both companies.

The current chairman of the Novo Nordisk Foundation is Lars Rebien Sørensen (former CEO of Novo Nordisk) and Mads Krogsgaard Thomsen is the current CEO of the Novo Nordisk Foundation. [19]

Profits and taxation

The Novo Nordisk Foundation receives cashflows and profits from paid dividends from Novo Holdings A/S. The paid dividends are taxed in the underlying companies in correspondence with Danish corporate tax laws, prior to being paid out as dividends.

Endowment

The Novo Nordisk Foundation is the primary owner of Novo Nordisk A/S and Novozymes A/S through the foundation's subsidiary company Novo Holdings A/S. [20] Aside from Novo Nordisk and Novozymes, the foundation is also a major shareholder in more than 135 other companies as of 2022. [21] The foundation's financial endowment is maintained by dividends and returns on these investments.

Types of grants

The Novo Nordisk Foundation offers grants under five main models: [22]

Distribution of grants

The foundation has an objective of providing support for scientific, humanitarian and social purposes. The grants go primarily to support research in biomedicine, biotechnology, general medicine, nursing and art history at public knowledge institutions. Humanitarian and social purposes includes the Steno Diabetes Center research hospital. [23]

Annual distribution summary

Prizes

The Novo Nordisk Foundation awards several prizes, including the Novo Nordisk Prize for outstanding research in medical science and the Novozymes Prize focusing on biotechnology and environmental research. The Novo Nordisk Foundation also recognise achievements in teaching and education in the sciences through awards such as the Hagedorn Prize and various scholarships and grants to support upcoming scientists and educators. [32]

International prizes

Teaching prizes

Criticism

Role in research and funding

The level of research funding concentration granted from enterprise foundations has consistently been a central issue in science policy discussions. Intensive concentration has been viewed both as a means to enhance and direct research investments effectively and as a concerning trend leading to excessive competition, reduced diversity, and the selection of conservative topics. [33]

There is a focus on evaluating potential imbalances in the distribution of research funds in Danish society regarding the role of the Novo Nordisk Foundation in advancing scientific research and innovation. [34]

One criticism is related to the foundation's significant economic influence in the research landscape. The substantial grants from the foundation may inadvertently overshadow other sources of research funding and potentially lead to a concentration of resources in certain research areas closely aligned with the foundation's priorities and interests. [35]

Concerns have been raised about the potential influence of the Novo Nordisk Foundation's agenda on the direction of scientific research. Critics express concerns about the potential effect of the foundation's allocation of funds on the diversity of research topics and perspectives within the Danish scientific community, [36] as it tends to prioritize projects that align with its strategic goals. [37]

Funding disparities

The Novo Nordisk Foundation has faced criticism for the concentration of its research funding, often favouring a select group of established researchers. This trend, prevalent in many countries, leads to funding disparities, where a majority of resources are allocated to a small percentage of researchers, often to the detriment of early-career, female, and diverse researchers. In response to these concerns, the Novo Nordisk Foundation has introduced partial randomisation in its grant allocation process. [38] This approach was designed to mitigate biases and increase the diversity of funded research, aiming to support projects that might otherwise be overlooked. The effectiveness of this strategy has been under evaluation during a three-year trial period. [38]

Research initiatives

Stem cell-based therapy research

In 2018, the Novo Nordisk Foundation invested in stem cell-based therapy research to focus on new therapeutic approaches for chronic diseases, exploring the regenerative potential of stem cells. [39] [40] [41]

COVID-19 pandemic

The Novo Nordisk Foundation contributed to support the fight against the COVID-19 pandemic in the spring of 2020. [42] As of June 2020), the foundation had donated DKK 366.2 million [43] (approx $55.77 million) for COVID-19 related measures, including test centers in Denmark (DKK 250 million for 11 COVID-19 test centers [44] ), financing research projects [45] aimed at mitigating the health consequences of COVID-19, [43] emergency production of ethanol in cooperation with the Carlsberg Foundation [46] to manufacture hand sanitizers and disinfection.

Pandemic antiviral discovery initiative

In 2022, the Novo Nordisk Foundation formed in partnership with the Bill & Melinda Gates Foundation and Open Philanthropy to focus on developing accessible oral antiviral treatments for viruses with pandemic potential. The initiative aimed to support researchers globally in identifying and developing phase 2-ready antiviral drug candidates. [47] [48] [49] [50]

Vaccine development for respiratory diseases

In 2023, the Novo Nordisk Foundation allocated $260 million to develop vaccines for respiratory diseases such as tuberculosis and influenza. This initiative, known as the Novo Nordisk Foundation Initiative for Vaccines and Immunity (NIVI), collaborated with the University of Copenhagen and Denmark's Statens Serum Institut. It emphasised generating immunity in the airway, a novel approach in vaccine development. [51] [52] [53] [54]

Combatting antimicrobial resistance and tuberculosis

In 2023, the Novo Nordisk Foundation worked on developing vaccines and treatments for tuberculosis, addressing the broader issue of antimicrobial resistance. [55] [56]

Cell therapy facility

In 2023, the Novo Nordisk Foundation launched an initiative to support research infrastructure developmen, specifically aimed at facilitating the creation and scaling up of cell therapy solutions and products. [39] [57]

See also

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<span class="mw-page-title-main">Novo Nordisk</span> Danish pharmaceutical company

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd with production facilities in nine countries and affiliates or offices in five countries. Novo Nordisk is controlled by majority shareholder Novo Holdings A/S which holds approximately 28% of its shares and a majority (77%) of its voting shares.

<span class="mw-page-title-main">Novozymes</span> Danish Biotechnology Company

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<span class="mw-page-title-main">Hans Christian Hagedorn</span>

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<span class="mw-page-title-main">Jens Nielsen</span> Danish biologist

Jens Nielsen is the CEO of BioInnovation Institute, Copenhagen, Denmark, and professor of systems biology at Chalmers University of Technology, Gothenburg, Sweden. He is also an adjunct professor at the Danish Technical University and the University of Copenhagen. Nielsen is the most cited researcher in the field of metabolic engineering, and he is the most cited researcher in Biology and Biochemistry in Sweden and Denmark. He is the only foreign member of all three academies in the US and he is also foreign member of the Chinese Academy of Engineering. He was the founding president of the International Metabolic Engineering Society. He has additionally founded several biotech companies.

<span class="mw-page-title-main">Novo Holdings A/S</span> Danish holding company

Novo Holdings A/S is the Novo Nordisk Foundation's wholly owned holding company for Novo Nordisk A/S and Novozymes A/S. Novo Holdings A/S was established in 1999 and manages the Novo Nordisk Foundation's assets, which in 2023 was worth almost DKK 1,114 billion Danish Kroner. The company generated a total income and investment return of DKK 31 billion in 2023.

Lise Kingo is a Danish businesswoman who currently serves as Independent Board Director at Danone, Sanofi and Covestro. Kingo is also a member of the Advisory Board for Humanitarian and Development Aid at the Novo Nordisk Foundation.

Andrew Tym Hattersley CBE FRS is a Professor of Molecular Medicine at the University of Exeter and is known for his research in monogenic diabetes. He was elected a Fellow of the Royal Society in 2010. He is also an Emeritus Senior Investigator at the National Institute for Health and Care Research (NIHR).

<span class="mw-page-title-main">Yihai Cao</span> Chinese-born Swedish scientist and professor

Yihai Cao, M.D., hM. D., Ph.D., is a Chinese-born Swedish scientist and a professor at the Karolinska Institute, Sweden. He is also an honorary professor or guest professor in Copenhagen University, Denmark; Linköping University, Sweden; Leicester University, UK; Shinshu University, Japan; Shandong University, China; and Peking University, China. He is an internationally recognized and cited researcher in cancer, obesity, diabetes, cardiovascular disease, and eye disease research. His publications have been cited more than 35,000 times and his h-index is 92. Cao received the Fernström research prize, the Karolinska distinguished professor award, and the Axel Hirsch Prize in medicine. Cao received an ERC-advanced research grant award, and a Novo Nordisk-advanced grant award. From 2018, Cao was elected to Academia Europaea, the European Academy of Sciences and Arts, the Chinese Academy of Engineering, the National Academy of Inventors, and The World Academy of Sciences. His research findings received broad public attentions including New York Times, Reuters and Swedish National TV broad casting.

Kasim Kutay is a British fund manager who is the CEO of Danish Novo Holdings A/S, an investment fund that manages investments and assets for the Novo Nordisk Foundation. He holds British citizenship and resides in Denmark.

<span class="mw-page-title-main">Ole Kiehn</span> Danish-Swedish neuroscientist (born 1958)

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<span class="mw-page-title-main">Lars Rebien Sørensen</span> Danish businessman (born 1954)

Lars Rebien Sørensen is a Danish businessman and former CEO of the pharmaceutical company Novo Nordisk and current chairman of the board at the Novo Nordisk Foundation and Novo Holdings A/S.

Mads Krogsgaard Thomsen is a Danish businessman, CEO of the Novo Nordisk Foundation and former Executive Vice President of Research & Development, head of R&D and Chief Scientific Officer (CSO) at the pharmaceutical company Novo Nordisk.

The Novo Nordisk Prize is an annual award presented to acknowledge exceptional contributions within the fields of medical and health sciences. It is specifically aimed at individuals who have demonstrated outstanding research or innovation that has the potential to advance medical science, particularly in areas related to diabetes, endocrinology, and biopharmaceutical science. The prize is administered by the Novo Nordisk Foundation, an independent Danish enterprise foundation.

The Novozymes Prize is an annual scientific award. The prize aims to recognise outstanding contributions to the advancement of science within the fields of biotechnology and bioinnovation.

The Hagedorn Prize is an annual award within the field of medical research, specifically recognizing outstanding contributions to diabetes research and endocrinology. Named after Hans Christian Hagedorn, a renowned Danish scientist and co-founder of Nordisk Insulinlaboratorium, the prize celebrates achievements in the understanding and treatment of diabetes.

Arne Vernon Astrup is a Danish nutritionist, chief physician, researcher, author and professor. He is known as a researcher, communicator and author and has published more than 900 scientific articles. In 2018 he was internationally recognised as one of the world's most cited researchers. Arne Astrup has contributed to the identification of GLP-1 as a satiety hormone, which has played a key role in the development of GLP-1 drugs for the treatment of obesity, which has contributed to the success of Novo Nordisk A/S and their drug Wegovy.

The Obesity Prize for Excellence is an international prize awarded annually by the European Association for the Study of Obesity (EASO) in collaboration with the Novo Nordisk Foundation. The prize recognizes extraordinary scientific contributions to obesity research and highlights ground-breaking discoveries that improve the understanding, prevention and treatment of obesity.

The Diabetes Prize for Excellence is an international prize awarded annually by the European Association for the Study of Diabetes (EASD) in collaboration with the Novo Nordisk Foundation. The award recognizes extraordinary research at the intersection of obesity and diabetes and highlights breakthrough discoveries that improve the understanding and treatment of these diseases.

References

  1. ↑ "Novo Holding Annual Report 2023" (PDF). Novo Nordisk Foundation. 3 September 2018. Retrieved 2024-12-08.
  2. ↑ Holdings, Novo. "Novo Holdings reports Total Income and Investment Returns of DKK 31 billion (€4.2 billion) for 2023. Total Assets grow by 38% to DKK 1,114 billion (€149 billion)". www.prnewswire.com. Retrieved 2024-09-24.
  3. ↑ 2023 Annual Report - Novo Holdings: https://assets.novoholdings.dk/novo-holdings-2023-performance-report.pdf
  4. ↑ "Form 6-K NOVO NORDISK A S For: Mar 31". StreetInsider.com. Retrieved 2020-06-14.
  5. 1 2 3 2022 Annual Report - Novo Nordisk Foundation: https://novonordiskfonden.dk/app/uploads/Novo-Nordisk-Foundation-Annual-Report-2022.pdf
  6. ↑ "Facts and figures". Novo Nordisk Fonden. Retrieved 2023-05-26.
  7. ↑ Foundation, Novo Nordisk. "Novo Nordisk Foundation awarded more than DKK 9.1 billion for purposes benefitting society in 2023". www.prnewswire.com. Retrieved 2024-08-26.
  8. 1 2 Reuters.com: Novo Nordisk foundation to place more grants outside Denmark - https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-foundation-place-more-grants-outside-denmark-2024-03-18/
  9. 1 2 "Annual report 2023". Novo Nordisk Fonden (in Danish). Retrieved 2024-08-26.
  10. ↑ "History".
  11. ↑ https://www.linkedin.com/company/novo-nordisk-fonden [ self-published source ]
  12. ↑ "Novo Nordisk Foundation ready to centralise diabetes treatment in Denmark – the Post". Archived from the original on 2017-03-04. Retrieved 2017-03-03.
  13. ↑ Ministry of Foreign Affairs of Denmark, BioInnovation Institute - A Life Science commercialisation platform attracting investment and new start-ups to Denmark. Accessed in December 2024
  14. ↑ Medicon Valley Alliance. Accessed in December 2024
  15. ↑ The Novo Nordisk Foundation establishes BioInnovation Institute as an independent foundation. Accessed in December 2024
  16. 1 2 3 "Ownership". Novo Nordisk Fonden. Retrieved 2023-05-26.
  17. ↑ Ownership constellation https://www.enterprisefoundations.dk/wp-content/uploads/2020/08/Novo-Nordisk-09.pdf
  18. ↑ Kaoutar. "Novo Nordisk Foundation - Bourses-etudiants.ma" (in French). Retrieved 2023-05-26.
  19. ↑ "Board".
  20. ↑ "Inside View: Novo Nordisk Foundation". Nature. 4 November 2015. doi:10.1038/nj0470.
  21. ↑ 2022 Novo Nordisk Foundation annual report p. 35-48: https://novonordiskfonden.dk/app/uploads/Novo-Nordisk-Foundation-Annual-Report-2022.pdf
  22. ↑ Novo Nordisk Foundation website: https://novonordiskfonden.dk/en/how-we-work/what-are-grants/
  23. ↑ "What do we support?". Novo Nordisk Fonden. Retrieved 2023-05-26.
  24. ↑ Nordic Society of Human Genetics & Precision Medicine: Novo Nordisk Foundation: Grant-giving Dip Is Temporary https://www.nshg-pm.org/Novo-Nordisk-Foundation-Grants-to-Increase
  25. ↑ Novo Nordisk Foundation - Annual report 2021: https://novonordiskfonden.dk/wp-content/uploads/Novo-Nordisk-Foundation-Annual-Report-2021.pdf
  26. ↑ Novo Nordisk Foundation 2021 grant report: https://novonordiskfonden.dk//app/uploads/2022/06/Grant_Report_2021-3.pdf
  27. ↑ Novo Nordisk Foundation 2020 Grants Report: https://novonordiskfonden.dk/wp-content/uploads/Grant-Report-2020.pdf
  28. ↑ Grant report 2019 https://novonordiskfonden.dk/wp-content/uploads/Grant-Rapport-2019.pdf
  29. ↑ Page 7 of the grant report 2018 https://novonordiskfonden.dk/wp-content/uploads/UK_GRANT_REPORT_2018.pdf
  30. 1 2 "Novo-fonden uddeler rekordmange milliarder". 22 March 2018.
  31. ↑ "Novo Nordisk Fonden sætter rekord: Uddelte 5,8 mia. Kr. I 2017". 22 March 2018.
  32. ↑ "Prizes Archive". Novo Nordisk Fonden. Retrieved 2024-03-31.
  33. ↑ MIT Press Direct: Concentration of Danish research funding on individual researchers and research topics: Patterns and potential drivers:https://direct.mit.edu/qss/article/1/3/1159/96125/Concentration-of-Danish-research-funding-on
  34. ↑ Finans.dk (Article in Danish): The balance of power is shifting: Novo Nordisk Foundation pays 10 per cent. of all public research in Denmark: https://finans.dk/erhverv/ECE12214153/magtbalancen-skrider-novo-nordisk-fonden-betaler-10-pct-af-al-offentlig-forskning-i-danmark/
  35. ↑ MedWatch.dk (in Danish): Researchers fear falling out of favor with the Novo Nordisk Foundation. https://medwatch.dk/samfund/article15890695.ece
  36. ↑ Information.dk (in Danish): External money distorts research. Here is an insight. https://www.information.dk/2019/11/eksterne-penge-skaevvrider-forskningen-indblik
  37. ↑ PolicyWatch.dk (in Danish): The Novo Nordisk Foundation finances more public research in Denmark. https://policywatch.dk/nyheder/virksomheder/article14447603.ece
  38. 1 2 The Scientist article: Q&A: A Randomized Approach to Awarding Grants https://www.the-scientist.com/news-opinion/q-a-a-randomized-approach-to-awarding-grants-69741
  39. 1 2 Otmani, Malin (2022-04-21). "The Novo Nordisk Foundation announces new 2030 plan". Nordic Life Science – the leading Nordic life science news service. Retrieved 2023-12-30.
  40. ↑ Otmani, Malin (2018-05-22). "Novo Nordisk increases its focus on stem cell-based therapies". Nordic Life Science – the leading Nordic life science news service. Retrieved 2023-12-31.
  41. ↑ Nelson, Millie (2022-01-20). "$343m investment to build stem-cell research center - BioProcess Insider". BioProcess International. Retrieved 2023-12-31.
  42. ↑ "Novo Nordisk Foundation: Societal Responses to and Preparedness for Emerging Viral Infections – 2020 (Denmark)". 3 April 2020.
  43. 1 2 "Initiatives - Covid-19".
  44. ↑ "New Danish agency will test up to 20,000 people a day for coronavirus". 21 April 2020.
  45. ↑ "The last round in Novo Nordisk Foundation's emergency coronavirus programme". 24 April 2020.
  46. ↑ "The Carlsberg Foundation supports emergency production of ethanol with DKK 8.7 million | Carlsbergfondet".
  47. ↑ "Novo Nordisk Foundation, Open Philanthropy, and Bill & Melinda Gates Foundation Launch Initiative to Support New Antiviral Medicines for Future Pandemics". Bill & Melinda Gates Foundation. Retrieved 2023-12-30.
  48. ↑ "Pandemic Antiviral Discovery initiative created by the Novo Nordisk Foundation, Open Philanthropy and the Gates Foundation". PMLive. 2022-03-16. Retrieved 2023-12-30.
  49. ↑ "Gates Foundation launches $90M fund to discover antivirals for future pandemics". Science|Business. Retrieved 2023-12-30.
  50. ↑ Pinching, John (2022-03-15). "Bill & Melinda Gates Foundation launch initiative for future pandemics". PharmaTimes. Retrieved 2023-12-30.
  51. ↑ FierceBiotech.com: Novo Nordisk Foundation sets up new vaccine initiative for respiratory diseases with $260M https://www.fiercebiotech.com/biotech/novo-nordisk-foundation-wants-tackle-respiratory-diseases-paying-260m-new-vaccine
  52. ↑ Pharmaceutical-Technology.com: Novo Nordisk Foundation sets up airborne infection vaccine initiative. https://www.pharmaceutical-technology.com/news/novo-nordisk-foundation-sets-up-airborne-infection-vaccine-initiative/
  53. ↑ PharmaPhorum.com: Novo Nordisk Foundation puts $260m into vaccine drive https://pharmaphorum.com/news/novo-nordisk-foundation-puts-260m-vaccine-drive
  54. ↑ Brogan, Jen (2023-12-20). "Novo Nordisk Foundation establishes new vaccine initiative worth $260m". PharmaTimes. Retrieved 2023-12-30.
  55. ↑ "Foundation behind Novo Nordisk to invest $260M in vaccine R&D". Yahoo Finance. 2023-12-18. Retrieved 2023-12-30.
  56. ↑ "Novo Nordisk Foundation Pumps $260M into Vaccines for Respiratory Diseases". BioSpace. 19 December 2023. Retrieved 2023-12-30.
  57. ↑ Deswal, Phalguni (2023-09-21). "Novo Nordisk Foundation invests $136m in new cell therapy facility". Pharmaceutical Technology. Retrieved 2023-12-31.
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