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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$167 billion USD (1,114 billion DKK) in 2022[1]
Websitenovonordiskfonden.dk/en

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

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

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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]

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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

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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.[16]
  • 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.[16]

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

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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

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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

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

  • 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 Novo Nordisk 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 Novo Nordisk Foundation and then are spun out as independent foundations.

Distribution of grants

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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

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  • In 2023, the foundation distributed a total of DKK 9.1 billion[8] (approx. $1.33 billion) and paid out DKK 5.8 billion ($0.84 billion) in grants.[9]
  • In 2022, the foundation distributed a total of DKK 7.5 billion[5] (approx $1.08 billion) and paid out DKK 5.2 billion ($0.76 billion) in grants.[24][5]
  • In 2021, the foundation distributed a total of DKK 8.8 billion[25] (approx $1.18 billion) and paid out DKK 4.8 billion ($0.65 billion) in grants.[26]
  • In 2020, the foundation distributed a total of DKK 10.17 billion[27] (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[28] (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[29] (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[30][31] (approx $0.88 billion)
  • In 2016, the fund provided support for DKK 4.2 billion[30] (approx $0.64 billion).

Prizes

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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

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Teaching prizes

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  • 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

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Role in research and funding

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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

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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

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Stem cell-based therapy research

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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

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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

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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

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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

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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

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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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References

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  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. ^ a b c 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. ^ a b 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. ^ a b "Annual report 2023". Novo Nordisk Fonden (in Danish). Retrieved 2024-08-26.
  10. ^ "History". Archived from the original on 2017-03-04. Retrieved 2017-03-03.
  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. ^ a b c "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 Archived 2022-10-05 at the Wayback Machine
  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 Archived 2020-05-30 at the Wayback Machine
  29. ^ Page 7 of the grant report 2018 https://novonordiskfonden.dk/wp-content/uploads/UK_GRANT_REPORT_2018.pdf
  30. ^ a b "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. ^ 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
  39. ^ a b 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. ^ a b "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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