Novo Nordisk Foundation

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Novo Nordisk Foundation
Founded1989; 35 years ago (1989) in Denmark
TypeFund
HeadquartersHellerup, Denmark
FieldsLife-sciences, natural sciences, social sciences
Endowment$117 billion USD (805 billion DKK) in 2022[1]
Websitenovonordiskfonden.dk/en

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

In 2022, the foundation had a net worth of $107 billion (805 billion DKK),[2] making it the wealthiest charitable foundation in the world. Novo Nordisk Foundation owns Novo Holdings A/S, a holding company that is the majority voting shareholder of Novo Nordisk, a Danish pharmaceutical corporation.[3]

From 2016 to 2022, the foundation distributed more than US$4.5 billion in grants for research, innovation, treatment, education, humanitarian and social purposes.[4][5] In 2022, the foundation awarded grants worth $1.09 billion[4] (7.5 billion DKK) and paid out $0.79 billion (5.2 billion DKK).[4]

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

History[edit]

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.[6]

In recent years, the Foundation has increased its focus on innovation, diabetes treatment and grants for humanitarian and social purposes. In 2016 the 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.[7][8]

Constellation and ownership structure[edit]

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).[9][10][11]

Ownership structure[edit]

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

  • The foundation owns class A and B-shares in Novo Nordisk corresponding to approximately 28 percent of the total equity and approximately 75 percent of the total voting rights.[9]
  • The foundation owns class A and B-shares in Novozymes corresponding to approximately 25 percent of the total equity and approximately 71 percent of the total voting rights.[9]

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.

Profits and taxation[edit]

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[edit]

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.[12] Aside from Novo Nordisk and Novozymes, the foundation is also a major shareholder in more than 135 other companies as of 2022.[13] The foundation's financial endowment is maintained by dividends and returns on these investments.

Types of grants[edit]

The Novo Nordisk Foundation offers various types of grants, categorised under five main models:[14]

  • Open-competition Grants: These are regular research grants awarded through open calls to the academic community. They include both shorter-duration project-focused grants and longer-duration research leader grants.
  • Stand-alone Grants: These are awarded within the Foundation's focus areas based on peer reviews. They encompass project grants, research leader grants, investigator grants, fellowships, infrastructure grants, and more.
  • Partnerships: Grants awarded for collaborations with public and/or private partners.
  • Impact Investments: Targeting companies like start-ups, often in the form of loans and investments, to support activities with positive societal impact.
  • Own Initiatives: Grants for initiatives that start as local units of the Foundation and then are spun out as independent foundations.

Distribution of grants[edit]

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.[15] In addition, the Novo Nordisk Foundation also awards a number of awards each year aiming to recognize and reward individuals for "outstanding research, teaching, or other support for research".[16]

Annual distribution summary[edit]

  • In 2022, the foundation distributed a total of DKK 7.5 billion[4] (approx $1.08 billion) and paid out DKK 5.2 billion ($0.76 billion) in grants.[17][4]
  • In 2021, the foundation distributed a total of DKK 8.8 billion[18] (approx $1.18 billion) and paid out DKK 4.8 billion ($0.65 billion) in grants.[19]
  • In 2020, the foundation distributed a total of DKK 10.17 billion[20] (approx $1.67 billion) and paid out DKK 4.6 billion ($0.75 billion) in grants.
  • In 2019, the foundation distributed a total of DKK 8.5 billion[21] (approx $1.29 billion) and paid out DKK 3.6 billion ($0.57 billion) in grants.
  • In 2018, the foundation distributed a total of DKK 3.9 billion[22] (approx $0.59 billion) and paid out DKK 1,75 billion ($0.28 billion) in grants.
  • In 2017, the foundation distributed support for DKK 5.8 billion[23][24] (approx $0.88 billion)
  • In 2016, the fund provided support for DKK 4.2 billion[23] (approx $0.64 billion).

Prizes[edit]

The Novo Nordisk Foundation awards several prestigious prizes, including the Novo Nordisk Prize for outstanding research in medical science and the Novozymes Prize focusing on biotechnology and environmental research. The 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.[25]

International Prizes:[edit]

Teaching Prizes:[edit]

  • Novo Nordisk Foundation Prize for Upper-secondary School Science Teachers
  • Novo Nordisk Foundation Prize for Science Teachers at University Colleges
  • Novo Nordisk Foundation Prize for Science Childhood Educators
  • Novo Nordisk Foundation Prize for Primary School Science Teachers
  • Novo Nordisk Foundation Prize for Lower-secondary School Science Teachers
  • Novo Nordisk Foundation Nature-based Educator Prize

Criticism of the Novo Nordisk Foundation's role in research and funding[edit]

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.[26]

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.[27]

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.[28]

Arguments and debates put forth by skeptics are that the foundation's focus on specific research areas, such as biomedicine and health sciences, could potentially divert attention and resources away from other equally significant disciplines that have the potential to contribute to overall societal well-being.

Concerns have been raised about the potential influence of the 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,[29] as it tends to prioritize projects that align with its strategic goals.[30]

Random grant allocation process to minimise funding disparities in research[edit]

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.[31]

This new approach is designed to mitigate biases and increase the diversity of funded research, aiming to support high-quality, innovative projects that might otherwise be overlooked. The effectiveness of this strategy is being evaluated over a three-year trial period.[31]

Significant research initiatives by the Novo Nordisk Foundation[edit]

The Novo Nordisk Foundation has been involved in numerous research initiatives, each focusing on areas of health and sustainability. Among others, below is a list of significant research initiatives:

Vaccine Development for Respiratory Diseases[edit]

The Foundation has 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), collaborates with the University of Copenhagen and Denmark’s Statens Serum Institut. It emphasises generating immunity in the airway, a novel approach in vaccine development.[32][33][34][35]

Pandemic Antiviral Discovery Initiative[edit]

This initiative, formed in partnership with the Bill & Melinda Gates Foundation and Open Philanthropy, is focused on developing accessible oral antiviral treatments for viruses with pandemic potential. The initiative aims to support researchers globally in identifying and developing phase 2-ready antiviral drug candidates.[36][37][38][39]

Combatting Antimicrobial Resistance and Tuberculosis[edit]

The Foundation is working on developing vaccines and treatments for tuberculosis, addressing the broader issue of antimicrobial resistance. This initiative aims to combat a significant and growing global health threat.[40][41]

Stem Cell-Based Therapy Research[edit]

The Foundation's investment in stem cell-based therapy research focuses on new therapeutic approaches for chronic diseases, exploring the regenerative potential of stem cells.[42][43][44]

Cardio-Metabolic Diseases Research[edit]

The Foundation's research in this area is centered on the prevention and treatment of obesity, type 2 diabetes, and cardiovascular diseases, which are among the leading causes of death globally.[42]

Sustainability in Food Production[edit]

The Foundation supports research in sustainable agriculture and food production techniques, aiming to address the challenge of sustainably feeding a growing global population.[42]

Life Science Ecosystem in Denmark[edit]

The initiative to create a world-class life sciences ecosystem in Denmark encompasses the entire value chain from basic research to scientific application, aiming to foster innovation and scientific breakthroughs.[42]

International Collaboration and Grants[edit]

The Foundation's initiatives involve large-scale projects that encompass collaborations across various sectors and disciplines, focusing on addressing global challenges through international cooperation and partnership.[42]

Educational Initiatives[edit]

The Foundation places a strong emphasis on natural science education, supporting the development of new research talent and established researchers.[42]

Research Infrastructure Development[edit]

The initiative to support research infrastructure development aims to facilitate the creation and scaling up of innovative solutions and products, enhancing the capacity for scientific research and development.[42][45]

COVID-19 pandemic[edit]

The Novo Nordisk Foundation contributed to support the fight against the COVID-19 pandemic in the spring of 2020.[46]

The foundation (as of June 2020) has donated DKK 366.2 million[47] (approx $55.77 million) for COVID-19 related measures.

  • Test centers in Denmark: DKK 250 million for 11 COVID-19 test centers throughout Denmark.[48]
  • Projects: DKK 74.9 million[49] for 43 different projects aimed at mitigating the health consequences of COVID-19 in Denmark.
  • Emergency production of ethanol: DKK 17.5 million granted in cooperation with The Carlsberg Foundation[50] for emergency production of ethanol for hand sanitizers and disinfection.
  • Research projects: DKK 6.6 million for three research projects.[47]
  • Trials: DKK 5 million[47] in support for trials for anti-inflammatory drugs against COVID-19 in collaboration with Rigshospitalet.

Leadership and Management[edit]

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.[51]

Current management[edit]

Under the leadership of the Foundation's CEO, the Executive Management is tasked with implementing the decisions made by the Board of Directors. Additionally, this team oversees the monitoring and follow-up of the Foundation's activities:[52]

Name Position
Mads Krogsgaard Thomsen CEO, Professor, DVM, PhD, DSc
Søren Nedergaard COO (Chief Operating Officer)
Erika Söderberg Johnsson CFO (Chief Financial Officer)
Steffen P. Lüders Senior Vice President, Corporate Affairs
Claus Felby Senior Vice President, Biotech, Professor, PhD
Lene Oddershede Senior Vice President, Natural & Technical Sciences, Professor
Martin Ridderstråle Senior Vice President, Medical Science, Chief Medical Officer
Berith Bjørnholm Senior Vice President, Education & Outreach, PhD
Peter Lawætz Andersen Senior Vice President, Infectious Diseases, Professor, DVM, DSc
Pelle Munk-Poulsen General Counsel & Senior Vice President, Legal
Arne Astrup Senior Vice President, Obesity and Nutritional Sciences, professor, MD, DMSc
Mikkel Skovborg Senior Vice President, Innovation
Flemming Konradsen Senior Vice President, Social & Humanitarian
Stine Fehmerling Senior Vice President, People & Organisation
Ulrik Meyer Senior Vice President, Finance & Digitalisation
Thomas Alslev Christensen Senior Vice President, Impact, PhD
Sofie Singbrant Söderberg Director, Head of Project & Portfolio Management, PhD
Anne Kahr Hällman Director, Grant Management, PhD
Danielle Kemmer Strategic Director, Strategic Partnerships
Niels Pærregaard Director, Head of Corporate IT
Mette Modvig Director, Digital & Project Excellence

Current Board of Directors[edit]

The Novo Nordisk Foundation's Board of Directors comprises nine members. According to the Foundation's Articles of Association, six of these members are elected in accordance with the stipulated regulations, while the remaining three are elected by the employees. The Board has established a competence profile that outlines the desired competencies for its members.[53]

Name Board title
Lars Rebien Sørensen Chairman, former CEO of Novo Nordisk
Lars Henrik Munch Vice Chairman
Christopher A. Voigt Member
Jakob Müller Member
Lars Fugger Member
Liselotte Højgaard Member
Mads Grøn Member
Nana Bule Sejbæk Member
Steen Riisgaard Member
Stig Strøbæk Member

See also[edit]

References[edit]

  1. ^ https://novonordiskfonden.dk/app/uploads/Novo-Nordisk-Foundation-Annual-Report-2022.pdf [bare URL PDF]
  2. ^ "For 2022, Novo Holdings reports a negative return on the Investment Portfolio of -6% and Total Income and Returns of DKK 3". Bloomberg. 12 April 2023. Retrieved 2023-05-26.
  3. ^ "Form 6-K NOVO NORDISK A S For: Mar 31". StreetInsider.com. Retrieved 2020-06-14.
  4. ^ a b c d e 2022 Annual Report - Novo Nordisk Foundation: https://novonordiskfonden.dk/app/uploads/Novo-Nordisk-Foundation-Annual-Report-2022.pdf
  5. ^ "Facts and figures". Novo Nordisk Fonden. Retrieved 2023-05-26.
  6. ^ "History".
  7. ^ https://www.linkedin.com/company/novo-nordisk-fonden [self-published source]
  8. ^ "Novo Nordisk Foundation ready to centralise diabetes treatment in Denmark – the Post". Archived from the original on 2017-03-04. Retrieved 2017-03-03.
  9. ^ a b c "Ownership". Novo Nordisk Fonden. Retrieved 2023-05-26.
  10. ^ Ownership constellation https://www.enterprisefoundations.dk/wp-content/uploads/2020/08/Novo-Nordisk-09.pdf
  11. ^ Kaoutar. "Novo Nordisk Foundation - Bourses-etudiants.ma" (in French). Retrieved 2023-05-26.
  12. ^ "Inside View: Novo Nordisk Foundation". Nature. 4 November 2015. doi:10.1038/nj0470.
  13. ^ 2022 Novo Nordisk Foundation annual report p. 35-48: https://novonordiskfonden.dk/app/uploads/Novo-Nordisk-Foundation-Annual-Report-2022.pdf
  14. ^ Novo Nordisk Foundation website: https://novonordiskfonden.dk/en/how-we-work/what-are-grants/
  15. ^ "What do we support?". Novo Nordisk Fonden. Retrieved 2023-05-26.
  16. ^ "Novo Nordisk and Novozymes Prizes Awarded".
  17. ^ 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
  18. ^ Novo Nordisk Foundation - Annual report 2021: https://novonordiskfonden.dk/wp-content/uploads/Novo-Nordisk-Foundation-Annual-Report-2021.pdf
  19. ^ Novo Nordisk Foundation 2021 grant report: https://novonordiskfonden.dk//app/uploads/2022/06/Grant_Report_2021-3.pdf
  20. ^ Novo Nordisk Foundation 2020 Grants Report: https://novonordiskfonden.dk/wp-content/uploads/Grant-Report-2020.pdf
  21. ^ Grant report 2019 https://novonordiskfonden.dk/wp-content/uploads/Grant-Rapport-2019.pdf
  22. ^ Page 7 of the grant report 2018 https://novonordiskfonden.dk/wp-content/uploads/UK_GRANT_REPORT_2018.pdf
  23. ^ a b "Novo-fonden uddeler rekordmange milliarder". 22 March 2018.
  24. ^ "Novo Nordisk Fonden sætter rekord: Uddelte 5,8 mia. Kr. I 2017". 22 March 2018.
  25. ^ "Prizes Archive". Novo Nordisk Fonden. Retrieved 2024-03-31.
  26. ^ 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
  27. ^ 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/
  28. ^ MedWatch.dk (in Danish): Researchers fear falling out of favor with the Novo Nordisk Foundation. https://medwatch.dk/samfund/article15890695.ece
  29. ^ Information.dk (in Danish): External money distorts research. Here is an insight. https://www.information.dk/2019/11/eksterne-penge-skaevvrider-forskningen-indblik
  30. ^ PolicyWatch.dk (in Danish): The Novo Nordisk Foundation finances more public research in Denmark. https://policywatch.dk/nyheder/virksomheder/article14447603.ece
  31. ^ a b 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
  32. ^ 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
  33. ^ 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/
  34. ^ PharmaPhorum.com: Novo Nordisk Foundation puts $260m into vaccine drive https://pharmaphorum.com/news/novo-nordisk-foundation-puts-260m-vaccine-drive
  35. ^ Brogan, Jen (2023-12-20). "Novo Nordisk Foundation establishes new vaccine initiative worth $260m". PharmaTimes. Retrieved 2023-12-30.
  36. ^ "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.
  37. ^ "Pandemic Antiviral Discovery initiative created by the Novo Nordisk Foundation, Open Philanthropy and the Gates Foundation". PMLive. 2022-03-16. Retrieved 2023-12-30.
  38. ^ "Gates Foundation launches $90M fund to discover antivirals for future pandemics". Science|Business. Retrieved 2023-12-30.
  39. ^ Pinching, John (2022-03-15). "Bill & Melinda Gates Foundation launch initiative for future pandemics". PharmaTimes. Retrieved 2023-12-30.
  40. ^ "Foundation behind Novo Nordisk to invest $260M in vaccine R&D". Yahoo Finance. 2023-12-18. Retrieved 2023-12-30.
  41. ^ "Novo Nordisk Foundation Pumps $260M into Vaccines for Respiratory Diseases". BioSpace. Retrieved 2023-12-30.
  42. ^ a b c d e f g 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.
  43. ^ 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.
  44. ^ Nelson, Millie (2022-01-20). "$343m investment to build stem-cell research center - BioProcess Insider". BioProcess International. Retrieved 2023-12-31.
  45. ^ Deswal, Phalguni (2023-09-21). "Novo Nordisk Foundation invests $136m in new cell therapy facility". Pharmaceutical Technology. Retrieved 2023-12-31.
  46. ^ "Novo Nordisk Foundation: Societal Responses to and Preparedness for Emerging Viral Infections – 2020 (Denmark)". 3 April 2020.
  47. ^ a b c "Initiatives - Covid-19".
  48. ^ "New Danish agency will test up to 20,000 people a day for coronavirus". 21 April 2020.
  49. ^ "The last round in Novo Nordisk Foundation's emergency coronavirus programme". 24 April 2020.
  50. ^ "The Carlsberg Foundation supports emergency production of ethanol with DKK 8.7 million | Carlsbergfondet".
  51. ^ "Board".
  52. ^ "Our management". Novo Nordisk Fonden. Retrieved 2024-02-11.
  53. ^ "Our board". Novo Nordisk Fonden. Retrieved 2024-02-11.
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