(obsolete) novo nordisk foundation - why and how?

NOVO NORDISK FOUNDATION

2 NOVO NORDISK FOUNDATION

WHY AND HOW?

HOW?The ambition of the Novo Nordisk Foundation is that our companies will create world-class business results. This will be achieved by generating research-based products and services that improve how disease is combated and how natural resources are used.

The Foundation uses its income for grants that ad vance and promote research at universities and hospitals within the health sciences and biotech-no logy. The perspective is long term, and the objective is to continue to develop a knowledge environment in which innovative and talented people can carry out research of the highest quality.

This is how we contribute to develop solutions for the pressing challenges of the future – to benefit both individuals and society as a whole.

WHY?The world is facing major challenges as the global population increases and ages. Simultaneously, human health and the environment are under pres sure: more people have lifestyle-related diseases, resources are being depleted and carbon dioxide emissions are rising.

More research is required to improve the combating of disease and the more intelligent use of natural resources. Denmark and the other Nordic countries must therefore make a special effort to retain and expand their strong position within biomedical and biotechnology research. This is necessary, especially because the international competition is intensifying.

NOVO NORDISK FOUNDATION 3


Introduction

ULF J. JOHANSSON CHAIR OF THE BOARD, NOVO NORDISK FOUNDATION AND CHAIR OF THE BOARD, NOVO A/S

“ The model for foundations in Denmark

provides a special opportunity to

retain knowledge-intensive companies

in Denmark. This means that important

knowledge, technology and talented

employeesstayinthecountrytobenefit

Denmark’s economy and society.”

The Novo Nordisk Foundation is a Danish foundation with corporate interests with two roles: commercial and societal. The objectives of the Foundation are to provide a stable basis for the commercial and research activities of the companies in the Novo Group and to sup-port scientific, humanitarian and social causes.

The organization reflects these two objectives: the Novo Nordisk Foundation awards grants, and the Foundation’s wholly owned sub-sidiary, Novo A/S, manages the Foundation’s commercial activities. The objective of Novo A/S is to manage the Foundation’s endowment and its controlling interests in Novo Nordisk A/S and Novozymes A/S, thereby ensuring that the Foundation obtains a satisfactory financial return.

The Foundation’s vision is to contribute significantly to research and development that improves the health and welfare of people. The Foundation aims to use its independence, flexibility and long-term perspective to promote world-class research and to ensure that Denmark and the rest of the Nordic countries develop and are re-cog nized as a knowledge powerhouse of exceptional internatio nal standing in the health sciences and biotechnology. Further, the Foun-dation has the ambition that Novo Group companies will position themselves as internationally recognized and significant actors for improving how disease is combated and natural resources are used.

The companies in the Novo Group must therefore demonstrate willingness and ability to meet the criteria set out in the Novo Group Charter through targeted efforts.

WHAT IS THE NOVO NORDISK FOUNDATION ?

WHAT IS THE NOVO NORDISK FOUNDATION ?


THE OBJECTIVES OF THE NOVO NORDISK FOUNDATION ARE:

4TO PROVIDE A STABLE BASIS FOR THE COMMERCIAL AND RESEARCH ACTIVITIES OF THE COMPANIES IN THE NOVO GROUP

4TO SUPPORT SCIENTIFIC, HUMANITARIAN AND SOCIAL CAUSES

What is the NOVO NORDISK FOUNDATION ?


The objecTives of The Novo Nordisk fouNdaTioN are:

4TO pROVIDe A STAble bASIS FOR The cOmmeRcIAl AND ReSeARch AcTIVITIeS OF The cOmpANIeS IN The NOVO GROUp

4TO SUppORT ScIeNTIFIc, hUmANITARIAN AND SOcIAl cAUSeS


Dividends

Dividends

NOVO NORDISK NOVOZYMES

NOVO A/S

NOVO NORDISK FONDEN


NOVO A/S

NOVO NORDISK FONDEN


NOVO A/S

Dividende

Udbytte Udbytte

100%

26,7%25,6%

INVESTMENT IN LIFE-SCIENCE COMPANIES

GRANTS

ulf j. johansson

(chair)

jørgen boe

(vice chair)

bo ahrén

Niels borregaard

karsten dybvad

board of direcTors of The Novo Nordisk fouNdaTioN

ulla Morin

(employee representative)

kurt anker Nielsen

søren Thuesen Pedersen


stig strøbæk


ulf j. johansson

(chair)

Göran a. ando

jørgen boe

jeppe christiansen

Per Wold-olsen

board of direcTors of Novo a/s

charTer for coMPaNies iN The Novo GrouP

company products and services

make a significant difference by

improving the way people live and

work.

4The company is perceived to be

an innovator – in technology, in

products, in services and/or in

market approach.

4The company is among the best

in its business and a challenging

place to work.

4The company delivers competitive

financial performance.

companies in the Novo Group commit to:

4value-based management

4open and honest dialogue with

stakeholders

4continuous improvement of:

• financial performance

• environmental performance

• social performance

4reporting in accordance with

relevant internationally approved

conventions

fiNaNcial floWs of The fouNdaTioN aNd iTs coMPaNies

The Novo Nordisk foundation

receives income from its wholly

owned subsidiary Novo a/s,

comprising

4dividends from wholly and

partly owned companies

4Proceeds from the sale of

ownership shares in wholly

and partly owned companies

4regular returns from

financial investments

Ulf J. Johansson

(Chair)

Jørgen Boe

(Vice Chair)

Bo Ahrén

Niels Borregaard

Karsten Dybvad

BOARD OF DIRECTORS OF THE NOVO NORDISK FOUNDATION

Ulla Morin


Kurt Anker Nielsen

Søren Thuesen Pedersen


Stig Strøbæk


Ulf J. Johansson

(Chair)

Göran A. Ando

Jørgen Boe

Jeppe Christiansen

Per Wold-Olsen

BOARD OF DIRECTORS OF NOVO A/S

CHARTER FOR COMPANIES IN THE NOVO GROUP

Company products and services

make a significant difference by

improving the way people live and

work.

4The company is perceived to be

an innovator – in technology, in

products, in services and/or in

market approach.

4The company is among the best

in its business and a challenging

place to work.

4The company delivers competitive

financial performance.

Companies in the Novo Group commit to:

4Value-based management

4Open and honest dialogue with

stakeholders

4Continuous improvement of:

• Financial performance

• Environmental performance

• Social performance

4Reporting in accordance with

relevant internationally approved

conventions

FINANCIAL FLOWS OF THE FOUNDATION AND ITS COMPANIES

The Novo Nordisk Foundation

receives income from its wholly

owned subsidiary Novo A/S,

comprising

4Dividends from wholly and

partly owned companies

4Proceeds from the sale of

ownership shares in wholly

and partly owned companies

4Regular returns from

financial investments


Grants awarded by the Novo Nordisk Foundation support free and independent research, with researchers deciding their research pri -orities and being able to publish as they wish. Grants are awarded in two ways:

4grants awarded in open competition based on the applications received and assessed by expert committees; and

4thematic grants, in which the Foundation decides the overall theme and international experts assess the research by peer review.

With its grants, the Foundation strives to facilitate new frontline research and to develop dynamic research environments that will attract and retain the very best researchers. This is intended to lead to research of the highest quality, some of which will lead to innovation.

The Foundation’s active support of free and independent research in areas defined by its Board and expert committees should be viewed as a supplement to government-funded research (such as that fund-ed through research councils) and publicly funded research institu-tions (comprising infrastructure, including buildings and equipment, and employees carrying out research and teaching).

The Novo Nordisk Foundation bases its grant awards on four cor-ner stones: commitment, professionalism, respect and trust.

4The activities of the Novo Nordisk Foundation are guided by a commitment to society with the aim of improving the health and welfare of people.

4The Foundation manages grants professionally with the aim of creating new and in-depth knowledge and innovation. The Foun-dation therefore uses peer review undertaken by several commit-tees and panels comprising experts from Denmark and elsewhere to ensure that the grants support research of the highest quality.

4The Foundation awards grants with the utmost respect for free and independent research and trusts that researchers will strive to ensure that the results of their research will benefit as many people as possible.

The Foundation’s support for free and independent research is key, according to Birgitte Nauntofte, CEO of the Novo Nordisk Foun-dation: “We support free and independent research, and no com-pany in the Novo Group has preferential access to the research results funded by grants from the Foundation. Because the owner-ship is vested in the research institutions and the researchers, the results benefit the whole of society.”

In addition to funding research, the Foundation also supports causes that are directly oriented towards society. Examples include: funding the operating costs, research in health promotion and international education in diabetes care of Steno Diabetes Center and developing application-oriented research findings that have commercial potential.

RESPECTING FREE AND INDEPENDENT RESEARCH

The Foundation’s grants

RESPECTING FREE AND INDEPENDENT RESEARCH


WE SUPPORT FREE AND INDEPENDENT RESEARCH, AND NO COMPANY IN THE NOVO GROUP HAS PREFERENTIAL ACCESS TO THE RESEARCH RESULTS FUNDED BY GRANTS FROM THE FOUNDATION. BECAUSE THE OWNERSHIP IS VESTED IN THE RESEARCH INSTITUTIONS AND THE RESEARCHERS, THE RESULTS BENEFIT THE WHOLE OF SOCIETY. BIRGITTE NAUNTOFTE.

CEO, NOVO NORDISK FOUNDATION

RESPECTTRUST

PROFESSIONALISMCommitment


The Foundation and its predecessor foundations have been support-ing high-quality research in Denmark and the Nordic countries since the 1920s through project grants awarded by committees appointed by the foundations. Along the way, additional committees and new grant areas have emerged together with new types of grants in the form of scholarships and prizes. Today, the Novo Nordisk Foundation has two main committees with roots extending to the original foun-dations and seven other committees engaging 45 experts.

In response to open calls, the Foundation receives about 1000 annual applications for grants for research projects and scholarships. The committees serve as the Foundation’s window to the research com-munities. Committee members are experts in their fields and have a valuable overview of the research field, often supplemented by expe-rience gained as members of research councils and academic assess-ment committees. The various committees are therefore extremely qualified to assess the quality, originality and feasibility of projects. The assessment process thus ensures high-quality grants.

Medical research is the Foundation’s most important grant area. One main committee, the Committee on Medical and Natural Sciences Research, awards grants for projects and scholarships for basic bio-

medical and clinical research in Denmark. The other main committee, the Nordic Research Committee (endocrinology), awards grants for specific short-term projects, scholarships and symposia in physiologi-cal, endocrinological and metabolic research in the Nordic countries. Committees also award project grants and scholarships for work in fields outside the areas of these two committees: the Committee on Nursing Research, Committee on General Practice and Family Medi-cine Research, Committee on Biotechnology-Based Synthesis and Production, Committee on Exploratory Pre-Seed Grants, Committee on Art History Research and Committee on Art History Research – Mads Øvlisen Scholarships.

In addition, the Foundation awards several honorary prizes each year, for which no applications are solicited, to reward researchers for unique research efforts. The Novo Nordisk Prize is the most pres-tigious of these prizes, comprising a personal honorary award and a grant for research in the prize recipient’s field. A specially appointed Prize Committee decides on the recipient of the Novo Nordisk Prize. Similarly, the Nordic Research Committee decides on the recipient of the Jacobæus Prize. The Foundation awards its other prizes jointly with scientific societies in Denmark and Scandinavia.

The Foundation’s committees

AN OPEN WINDOW TO THE WORLD

The objective of these prizes is to reward researchers for a unique research effort.

Marie and August Krogh Prize Awarded under the auspices of the Organization of Danish Medical Societies

Hagedorn Prize Awarded under the auspices of the Danish Society for Internal Medicine

Novo Nordisk Foundation LectureAwarded under the auspices of the Scandinavian Society for the Study of Diabetes and the Foundation’s Nordic Research Committee (endocrinology)

Jacobæus Prize Awarded under the auspices of the Foundation’s Nordic Research Committee (endocrinology)

Novo Nordisk Prize Awarded under the auspices of the Foundation’s Prize Committee

PRIZES AWARDED BY THE NOVO NORDISK FOUNDATION


NORDICRESEARCH COMMITTEE

COMMITTEE ON NURSING RESEARCH

COMMITTEE ON GENERAL PRACTICE AND FAMILY MEDICINE RESEARCH

COMMITTEE ON EXPLORATORY PRE SEED GRANTS

NOVO NORDISK PRIZE COMMITTEE

COMMITTEE ON ART HISTORY RESEARCH

COMMITTEE ONBIOTECHNOLOGYBASED SYNTHESIS AND PRODUCTION

MADS OVLISEN SCHOLARSHIPS

Meet a committee ChairProfessor Bo Ahrén



Bo Ahrén, who has chaired the Nordic Research Committee (endo-crinology) since 2005, explains: “The grants we award on behalf of the Novo Nordisk Foundation significantly influence research in the Nordic countries. The grants are large – the largest is DKK 1 million per year – and comprise a major part of the financial basis of the research groups. Many important projects would simply not proceed without our support.” Based on applications, the Committee awards project grants every year for basic scientific and clinical endocrinology research in the Nordic countries.

“Through our work on assessing applications, Committee members attain broad insight into what is happening in the research environ-ments around us. This is incredibly exciting and very motivating, be-cause we can directly influence how the Foundation applies its funds to benefit endocrinology throughout Scandinavia. We contribute to maintaining the grand idea of pan-Nordic cooperation stemming from the era of the Nordisk Insulin Foundation.”

“In addition to funding projects and symposia, in recent years the Committee has awarded grants for excellence projects, which are scholarships awarded to younger, promising researchers. This really gets us in touch with what excites the younger generation of re-searchers and provides a truly unique picture of the current trends in research. It is a great privilege to participate in the process of sup-porting young people in the sensitive initial phase of their research careers: a phase in which they may either need more time or more money than more established and experienced researchers. It is ex - ci ting to see them, and their work, blossom and grow.”

“For me personally, it is really important to be able to play a role in supporting research in the Nordic countries. The most stimulating aspect of my work on the Committee is that I have the opportunity to participate actively in funding high-quality research that allows researchers to pursue their ideas. I learn enormously from this – through the projects and by collaborating with my colleagues on the Committee. This is the best reward I could ask for.”

FINGER ON THE PULSE...

THROUGH OUR WORK ON ASSESSING APPLICATIONS, COMMITTEE MEMBERS ATTAIN BROAD INSIGHT INTO WHAT IS HAPPENING IN THE RESEARCH ENVIRONMENTS AROUND US. THIS IS INCREDIBLY EXCITING AND VERY MOTIVATING.

BO AHRÉN, PROFESSOR, CHAIR OF THE NORDIC RESEARCH COMMITTEE AND MEMBER OF THE BOARD OF THE NOVO NORDISK FOUNDATION

Novo Nordisk Foundation 7 years up to 40 million Biomedicine and biotechnology research 2Laureate research grants

Hallas-Møller Scholarship 5 years up to 11 million Biomedical research: basic, translational and clinical research 2

Novo Nordisk Foundation Excellence 5 years 5 million Endocrinology research: basic, translational 4Project for Young Researchers within and clinical researchEndocrinology

Clinical research scholarships 5 years 2.5 million Biomedical translational research and clinical research 4

Mads Øvlisen scholarships 3 years 1.5 million Art history, art and curatorship 2

Co-funding of postdoctoral 3 years 0.5 million Nursing research 3fellowships in nursing

Co-funding of PhD fellowships 3 years 0.5 million Nursing research 3in nursing

Co-funding of postdoctoral fellowships 2 years 0.5 or 1 million General practice and family medicine 2 –4in general practice and family medicine

NOVO NORDISK FOUNDATION SCHOLARSHIPS – AWARDED ANNUALLY BASED ON CALLS FOR APPLICATIONS, APPLICATIONS AND PEER REVIEW

Scholarship Duration Total allocated ( DKK) Grant area Number awarded/year


Meet a grant recipientProfessor Poul Nissen

The Hallas-Møller Scholarship is a five-year scholarship awarded based on applications from the most talented researchers in medi-cal and natural sciences research, mainly within basic biomedical research, translational research and clinical research in Denmark.

Poul Nissen, Professor of Protein Biochemistry at Aarhus University, was awarded the 2005 Hallas-Møller Scholarship for a project on eukaryote ribosomes and membrane proteins. The project invest-igated the atomic structure of ribosomes and membrane proteins to provide new knowledge on the biochemical processes in the cells based on protein crystallography. The long-term aim is to provide a basis for understanding disease and the effect of pharmaceuticals.

According to Poul Nissen, “The Hallas-Møller Scholarship was cru-cial for my research, mostly because of its five-year horizon. Since I knew that I had a fixed grant from the start, I could focus on the work and the long-term objectives instead of having to spend considerable time combining many small grants. This also made the task of recruiting the optimal research talent to my team much easier.”

“The Hallas-Møller Scholarship enabled me to carry out ambitious research at a totally different level than I would otherwise have been able to, and this has been a real privilege. The exciting thing about this research, which involves investigating new protein mol-ecules, is that we were the first to discover things that no one had

seen before. We acquired uniquely new basic knowledge about life processes and cellular function. Simply speaking, we took a direct look at how these things actually work. This is of considerable inter-est for the basic research in such fields as molecular physiology and pharmacology.”

“I am certain that the Scholarship has been a fantastic launch pad for our research and a major contributing factor to our receiving funding from the Danish National Research Foundation for es-tablishing the Centre for Membrane Pumps in Cells and Disease (PUMPKIN) in 2007. Subsequently, I was also fortunate to receive an Advanced Research Grant from the European Research Council, which will provide funds for an additional five years.”

In the long term, I would like to peel off yet another layer to under-stand how cells function as an interaction of molecules. Basically, this means describing the biochemistry that makes life function the way it does – how the human brain achieves consciousness, for example. Further, I want to create greater understanding at the bio-spheric level about how biological systems operate – for example, how microorganisms actually influence humans. I find this really exciting.”

FIVE YEARS OF FOCUS AND IMMERSION

FIVE YEARS OF FOCUS AND IMMERSION


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POUL NISSEN. PROFESSOR,AARHUS UNIVERSITY

THE HALLAS-MØLLER SCHOLARSHIP ENABLED ME TO CARRY OUT AMBITIOUS RESEARCH AT A TOTALLY DIFFERENT LEVEL THAN I WOULD OTHERWISE HAVE BEEN ABLE TO, AND THIS HAS BEEN A REAL PRIVILEGE.


Meet a prize winnerPeter Lawætz Andersen

PETER LAWÆTZ ANDERSEN, VICE PRESIDENT, VACCINE RESEARCH AND DEVELOPMENT, STATENS SERUM INSTITUT, COPENHAGEN

TODAY, ABOUT ONE THIRD OF THE WORLD’S POPULATION IS LIVING WITH TUBERCULOSIS. IF OUR NEW VACCINE SUCCEEDS, IT WILL AFFECT MILLIONS OF PEOPLE.


The 2011 Novo Nordisk Prize was awarded to Peter Lawætz Ander-sen, Vice President of Vaccine Research and Development at Statens Serum Institut (National Institute for Health Data and Disease Con-trol), for original, systematic, groundbreaking and internationally acclaimed research in tuberculosis immunology, which has resulted in new vaccines and improved diagnostics.

The Novo Nordisk Prize is accompanied by DKK 1.5 million (€200,000): a research grant of DKK 1 million and a personal honorary award of DKK 500,000.

Today, one third of the world’s population is living with tuberculosis, with 2–3 million people dying from the disease every year. Peter Lawætz Andersen has developed a vaccine that not only provides protection from infection but also prevents the disease from breaking out even when people are vaccinated after being infected. Peter Lawætz Andersen describes his research:

“In many ways, tuberculosis is a very interesting and relevant disease to study. This is a very intellectually stimulating field that presents major challenges. We need to think outside the box and understand the underlying complex interaction between bacteria and humans as the host.”

“That is why this research is important at a high level. If our new vaccine succeeds, it will affect millions of people. I find the combina-tion of scientific challenges and importance at the global scale ex-tremely motivating, and this makes it easier for me to use such a large part of my life in getting to the core of this. I do not think I would have been able to invest the same resources in pure basic science questions.”

“In this context, the Novo Nordisk Prize has made a huge difference, and for me it represents the ultimate accolade for my work during the past 20 years. Because tuberculosis is not perceived as a problem in our part of the world, our research has not attained the same public focus as research on diseases of which Danes are more aware – such as cancer or influenza. The Novo Nordisk Prize and the result-ing publicity has really put tuberculosis on the agenda, and this con-tributes to ensuring that we will not forget a problem that most people think has been eradicated but that far exceeds all other bac-terial diseases in global terms.”

“If we can prevent the disease from breaking out among the billions of people already carrying the tuberculosis bacteria and if we can prevent transmission in future generations by using an effective vaccine, tuberculosis could be eradicated one day. We hope to be able to strike at the Achilles’ heel of a disease that has caused hu-manity major problems for millenniums.”

“The vaccine has been tested in a range of experiments on mice, rats and other laboratory animals and is effective without side effects. We are now carrying out the first human clinical trials in South Africa in a major project lasting several years. We hope to get the vaccine on the market in about 2020,” says Peter Lawætz Andersen.

THE NOVO NORDISK FOUNDATION AWARDS THE PRESTIGIOUS NOVO NORDISK PRIZE ANNUALLY TO A RESEARCHER IN RECOGNITION OF UNIQUE MEDICAL RESEARCH.

THE ULTIMATE ACCOLADE


In recent years, the Novo Nordisk Foundation has awarded major thematic grants, in which the Foundation’s Board has given priority to awarding relatively large grants in a specific research field. The fields range from bioinformatics and research methodology to im - proving rehabilitation of people with cancer, with the recipients for each theme being awarded between DKK 1 million (€135,000) and DKK 35 million (€4.71 million) for up to five years. In several cases, the grants have been awarded in partnership with either private or public donors. These one-off grants have been the springboard for la-unching the Foundation’s long-term and substantial thematic grants.

Since 2007, the Foundation has awarded grants totalling DKK 2.65 billion (€357 million) over 10 years in a number of clearly defined fields, establishing four research centres and one national biobank in Denmark. The ambition is to create a cluster of research centres within biomedicine and biotechnology in Greater Copenhagen and thereby develop and strengthen the region’s scientific competencies, train leading researchers and achieve world-class scientific results.

Ulf J. Johansson, Chair of the Board, says: “The centres must compe-te for the best research talent, not just with the United States but also

with such countries as China. Combining a long-term per spective and substantial funding means that the centres can attract the ab-solute best research capacities globally. The Foundation believes that setting priorities is necessary so that the money is not spread too thinly. We therefore decided to establish a research cluster in Greater Copenhagen, where the University of Copenhagen and the Technical University of Denmark are located and where several bio - pharma ceutical and biotechnology companies are headquartered. We do not believe that all research groups in these fields should be located in Copenhagen, but as a metropolis, it is a natural hub for the collaboration in national, regional and international networks.”

Another objective of the centres’ geographical proximity is that this will lead to a pulsating, creative environment capable of creating fruitful interdisciplinary partnerships based on the centres’ closely related scientific fields. The result is synergy in the form of mutual in-spiration and knowledge sharing, which each centre would other wise not achieve alone. Ulf J. Johansson: “The centres are close to each other, which enables them to share resources, to develop an inter-disciplinary collaboration culture and to establish meeting venues for international researchers in the form of seminars and conferences.”

Major thematic grants

PULSATING SYNERGY AND SUCCESS

THE NOVO NORDISK FOUNDATION STRATEGY FOR THE RESEARCH CENTRE CLUSTER

4 THE AIM OF THE CLUSTER IS TO RETAIN AND DEVELOP AN ACADEMIC RESEARCH AND KNOWLEDGE ENVIRONMENT OF THE HIGHEST INTERNATIONAL CALIBRE WITHIN BIOMEDICINE AND BIOTECHNOLOGY – LOCATED IN GREATER COPENHAGEN.

4 THE NOVO NORDISK FOUNDATION WISHES TO SUPPORT THE DEVELOPMENT OF LONG-LIVED RESEARCH ENVIRONMENTS, WHICH WILL COMPRISE THE PREREQUISITES FOR SYNERGY BETWEEN THE UNIVERSITIES IN GREATER COPENHAGEN AND ITS BIOMEDICINE AND BIOTECHNOLOGY COMPANIES.

PULSATING SYNERGY AND SUCCESS


IN ADDITION TO CREATING A FRAMEWORK FOR RESEARCH OF THE HIGHEST INTERNATIONAL CALIBRE, THE OBJECTIVE OF THESE MAJOR GRANTS IS TO CREATE A CLUSTER OF BASIC RESEARCH CENTRES THAT CAN HELP TO ATTRACT THE WORLD’S BEST RESEARCHERS AND ESTABLISH THE BASIS FOR INNOVATIVE AND HIGHLY SUCCESSFUL RESEARCH ENVIRONMENTS IN DENMARK TO BENEFIT EVERYONE. ULF J. JOHANSSON, CHAIR OF THE BOARD,


18 NOVO NORDISKFOUNDATION

The vision of the Novo Nordisk Foundation Center for Protein Research is to find the molecular causes of a wide range of diseases and to contribute to developing new and more effective treatment. The means of accomplishing this include high-technology studies of proteins in diseased and healthy cells combined with processing the enormous quantities of data by using computer technology.

Jesper Velgaard Olsen, Professor and Deputy Director of the Center, explains: “In-depth insight into the biology of disease is required to develop new and specific types of pharmaceutical therapy. Our goal is to describe and understand the changes in proteins that lead to disease.” He emphasizes that the Center enables unique opportunities for researching the complicated pathways from protein to disease.

This research is intended to benefit the people who be -come seriously ill and who cannot yet be treated optimally. In addition, universities and hospitals are given access to a valuable resource, and companies can tap into the knowledge and expertise produced by the Center. The Center also provides students with access to expe ri-ence, advanced equipment and methods to improve their competencies at a high international level.

According to Jesper Velgaard Olsen, “Today, many re search centres operate virtually, but the grant from the Novo Nordisk Foundation enables us to create a physical centre that has the privilege of having long-term funding. This is extremely unusual.”

The Center was established in 2007 through a grant of DKK 600 million (€80.7 million) over 10 years and now has 137 employees representing more than 22 different nationalities. Researchers at the Center publish in the world’s best scientific journals.

COMBINATIONS AND CONSEQUENCESTHE NOVO NORDISK FOUNDATION CENTER FOR PROTEIN RESEARCH, UNIVERSITY OF COPENHAGEN

THE NOVO NORDISK FOUNDATION CENTER FOR PROTEIN RESEARCH, UNIVERSITY OF COPENHAGEN


IN-DEPTH INSIGHT INTO THE BIOLOGY OF DISEASE IS REQUIRED TO DEVELOP NEW AND SPECIFIC TYPES OF PHARMACEUTICAL THERAPY. OUR GOAL IS TO DESCRIBE AND UNDERSTAND THE CHANGES IN PROTEINS THAT LEAD TO DISEASE.

JESPER VELGAARD OLSEN, PROFESSOR AND DEPUTY DIRECTOR, THE NOVO NORDISK FOUNDATION CENTER FOR PROTEIN RESEARCH, UNIVERSITY OF COPENHAGEN


The Center will carry out basic research on metabolism – and thereby on diseases associated with lifestyles. These include type 2 diabetes and diseases related to obesity, which are increasing rapidly throughout the world. The International Diabetes Federation says that 285 million people worldwide have type 2 diabetes, and this is expected to rise to 438 million people within just 20 years.

Thue W. Schwartz, Professor and Scientific Director of the Center, says: “The Center is following a long-standing and powerful research tradition in this field in which Denmark has been able to set a research agenda. This substantial grant from the Novo Nordisk Foundation enables us not only to plan our research for the long term over 10 years but also to attract new young talent within basic metabolic research. This will ensure that the research is of the highest international calibre. From its base in Copenhagen, the Center will collaborate closely with Denmark’s other research groups and establish research alliances with leading research groups from top universities around the world, including the other Nordic countries, the United States, the rest of Europe and China.”

The Foundation awarded the Center a grant of DKK 885 million (€119 million) over 10 years, and the development of the Center will create about 150 new jobs in Denmark.

ENIGMATIC LIFESTYLE-RELATED DISEASESTHE NOVO NORDISK FOUNDATION CENTER FOR BASIC METABOLIC RESEARCH, UNIVERSITY OF COPENHAGEN

THE NOVO NORDISK FOUNDATION CENTER FOR BASIC METABOLIC RESEARCH, UNIVERSITY OF COPENHAGEN


FROM ITS BASE IN COPENHAGEN, THE CENTER WILL COLLABORATE CLOSELY WITH DENMARK’S OTHER RESEARCH GROUPS AND ESTABLISH RESEARCH ALLIANCES WITH LEADING RESEARCH GROUPS FROM TOP UNIVERSITIES AROUND THE WORLD, INCLUDING THE OTHER NORDIC COUNTRIES, THE UNITED STATES, THE REST OF EUROPE AND CHINA. THUE W. SCHWARTZ, PROFESSOR AND SCIENTIFIC DIRECTOR, THE NOVO NORDISK

FOUNDATION CENTER FOR BASIC METABOLIC RESEARCH, UNIVERSITY OF COPENHAGEN


Denmark is at the forefront of epidemiological research. The estab-lishment of the Danish National Biobank now enables researchers to link the huge quantity of information contained in a biosample with the information in Denmark’s various registries. Mads Melbye, Profes-sor and Executive Vice President of Statens Serum Institut (National Institute for Health Data and Disease Control), explains: “This has given Danish research new and unique competitive opportunities. The Danish National Biobank is a project with three strands: the Dan-ish National Biobank Registry, a large physical biobank and a coor-dinating centre.”

The Danish National Biobank Registry will contain detailed informa-tion about more than 15 million biosamples that are available in Den-mark’s health care system and the largest research biobanks, includ-ing biosamples at Statens Serum Institut. Researchers will have access to an anonymized version of the Registry via the Internet, which will allow them to investigate which biosamples exist for the specific group of people on which they want to focus their research.

Among others, the Danish National Biobank will contain the bio-samples submitted daily to Statens Serum Institut and large collec-tions of biosamples stored by Statens Serum Institut over many years: currently more than 6 million biosamples. In addition to receiving, storing and dispensing the actual biosamples, the biobank will be linked to development projects that attempt to improve the possibili-ties of extracting valuable information from biological material.

The coordinating centre at Statens Serum Institut is coordinating the development of the Danish National Biobank Registry, and the Dan-ish National Biobank will subsequently be responsible for managing the daily activities. The coordinating centre will also develop the ex-pertise required to manage and process the biological material and advise and assist researchers on issues arising from the use of the Danish National Biobank Registry and the physical Biobank.

According to Mads Melbye,“Creating the Danish National Biobank means that research projects assessed and approved by Denmark’s system of committees on health research ethics and the Danish Data Protection Agency will be able to link biological material from one individual with a large quantity of additional information available in Denmark’s national registries, such as those within the health care system. These opportunities will provide us with a completely new range of tools that will enable us to understand better why diseases arise and how they can best be prevented and treated.”

In 2009–2010, the Novo Nordisk Foundation awarded the Danish National Biobank a 10-year grant of DKK 118 million (€15.9 million).

HOME TO THE ENTIRE DANISH POPULATION

THE DANISH NATIONAL BIOBANK WILL BECOME THE MOTHER OF ALL FREEZERS AND ONE OF THE WORLD’S LARGEST AND MOST MODERN ONES, WITH THE CAPACITY TO STORE 15 MILLION BIOSAMPLES SUCH AS BLOOD, TISSUE AND DNA.

MADS MELBYE, PROFESSOR AND EXECUTIVE VICE PRESIDENT, STATENS SERUM INSTITUT

THE DANISH NATIONAL BIOBANK, STATENS SERUM INSTITUT


CELLS REVEALING THEIR DESTINY

The Danish Stem Cell Center (DanStem) of the University of Copenhagen has two sections – one conducting basic research and the other translational research. The Novo Nordisk Foundation awarded a grant to the Section for Basic Stem Cell Biology (BasicStem), the first of these two sections. This Section will focus on research that investigates how stem cells divide at the embryonic stage and differentiate into all the specialized cell types in the body, including the insulin-producing beta cells. The research will also concentrate on how researchers can induce a specific differentiation of stem cells in the laboratory and the role of stem cells in developing cancer cells. The goal is to create a knowledge base that can be used to combat diabetes and cancer.

Professor Henrik Semb is the Managing Director of the Center. He was previously the Director of the Lund Stem Cell Center of Lund University in Sweden. He elab - o rates: “We need to study the basic mechanisms of stem cells and try to make stem cells differentiate into new insulin-producing beta cells. We will also focus on identifying and characterizing the special cancer stem cells that can be the source of such types of cancer as breast cancer. The Center provides a totally unique opportunity to improve basic research and to make research within these two fields mutually beneficial.”

The Novo Nordisk Foundation awarded BasicStem a 10-year grant of DKK 350 million (€47.1 million).DanStem will employ more than 100 researchers once it is fully established.

THE NOVO NORDISK FOUNDATION SECTION FOR BASIC STEM CELL BIOLOGY, UNIVERSITY OF COPENHAGEN


WHAT ATTRACTS ME IS THE ENORMOUS CHALLENGE INVOLVED IN DEVELOPING A STEM CELL CENTRE THAT HAS A REAL POTENTIAL TO COMPETE WITH THE REST OF THE WORLD.

HENRIK SEMB, PROFESSOR AND MANAGING DIRECTOR, THE DANISH STEM CELL CENTER (DANSTEM), UNIVERSITY OF COPENHAGEN


EXCELLENCE IN RESEARCH DOES NOT NECESSARILY LEAD TO INNOVATION. THIS REQUIRES AN INNOVATIVE CULTURE INFUSED WITH CREATIVITY AND DYNAMISM. THIS IS PRECISELY WHAT WE ARE CREATING AT THE CENTER FOR BIOSUSTAINABILITY.

BERNARD PALSSON, PROFESSOR AND CEO, NOVO NORDISK FOUNDATION CENTER FOR BIOSUSTAINABILITY, TECHNICAL UNIVERSITY OF DENMARK

NOVO NORDISK FOUNDATION CENTER FOR BIOSUSTAINABILITY, TECHNICAL UNIVERSITY OF DENMARK

NOVO NORDISK FOUNDATION CENTER FOR BIOSUSTAINABILITY, TECHNICAL UNIVERSITY OF DENMARK


The Novo Nordisk Foundation Center for Biosustainability is the world’s first interdisciplinary research centre within biosustainability. It aims to develop new knowledge and technology that can transform the current petrochemical industry to a more sustainable and biologically based industry. The Center is researching how to design highly speciali sed microorganisms – cell factories – that can be used industrially in the next generation of biorefineries and for manu facturing chemicals that are valuable from a socioeconomic perspective, such as the raw materials for polymer products, food ingredients and pharmaceutical products.

The Center has established satellites at the University of California at San Diego and at the KTH Royal Institute of Technology and Chalmers University of Technology in Sweden and is thereby collaborating in international research with the world’s leading research groups within the Center’s field. It is located at Scion DTU in Hørsholm, Denmark and collaborates with national and international biotechnology companies as well as the chemical industry to promote knowledge exchange and appli cation of the

Center’s results. The Center will also act as an incu- bator for spin-off activities and developing talent.

According to Bernhard Palsson, Professor and CEO, “Denmark has a strong position in industrial biotech nology, and ultima tely we want to maintain this for the future and lead in developing a new biologically based society.The Center has already attracted worldwide attention, which will enable many rewarding partnerships.”

“Countless laboratories worldwide are actively engaged in research in this field, but so far not at the same scale and intensity as the Center for Biosustainability. We are in the process of building up a critical mass that will move the process forward in 2012 and enable us to establish a globally leading centre over the coming years.”

In 2010, the Novo Nordisk Foundation awarded the Center for Biosustainability a 10-year grant of DKK 700 million (€94.2 million). The Center already has 80 employees, with more on the way.

A BIO-BASED PERSPECTIVE ON THE WORLD


One strategic objective of the Novo Nordisk Foundation is to build bridges between the discoveries in biomedicine and bio-technology and their commercial application.

Different stages of the innovation process require different types of support because the technical and commercial activi-ties change and develop throughout the process. The Founda-tion therefore supports a range of initiatives – either directly or through its subsidiary Novo A/S – and thus covers the entire innovation value chain from research discovery to commercial-izing new diagnostic methods, therapies, medical devices and technologies.

At the earliest stage, researchers who make a discovery need to test whether the idea is viable. Testing at several different levels is required, all of which needs to be funded. A crucial part of testing the idea’s commercial potential is to assess patenting and marketing opportunities. The Foundation’s new Committee on Exploratory Pre-Seed Grants enables research-ers based at a university or hospital in a Nordic country to apply for funds for testing and developing an idea at the earli-

est stage. Once the early testing is developed and completed, and if the idea continues to show scientific and commercial potential, researchers can apply for a pre-seed grant from the Foundation. For both pre-seed programmes, the Foundation, in partnership with Novo A/S, supports the process of maturing the idea on the same terms as it supports research – a grant awarded to the recipient.

If an idea is sustainable and promising enough to advance to the next stage, which involves more extensive technical and commercial activities, Novo A/S can fund the project by invest-ing in a seed-stage company. At that stage, Novo A/S will ex-ercise influence in the expanding company by appointing a member of the board.

If the idea still has commercial potential, Novo A/S can make a venture capital investment that provides the company with substantial funds for further development. Once the idea and the company have matured further, Novo A/S may also invest even more through a growth equity stage investment. The opportunities for investments to pay off in the form of new

Driving innovation

DYNAMO AND BRIDGE-BUILDER


products and financial returns especially increase at the later stages, but this is far from certain and also requires a long-term perspective.

However, neither excellence in research nor the appropriate funding of ideas inherently leads to innovation. Ultimately, this also requires the right people who can drive research in a direction that enables the innovative potential to unfold as well as talented entrepreneurs who can advance a small bio-technology company. This is why the Foundation is working to

create a strong innovation culture in Denmark and the other Nordic countries. The Foundation’s initiatives are intended to catalyse the establishment of dynamic, pulsating and creative research environments that focus on innovation. One such con-tribution to creating an innovation culture is the establishment of the Foundation’s cluster of research centres within biomedi-cine and biotechnology. The long time horizon and substantial funding of these centres enable them to create the basis for world-class research and to attract some of the leading global researchers and knowledge entrepreneurs to Denmark.

GROWTHEQUITY

INVESTMENT

VENTURE

INVESTMENT

SEED

INVESTMENT

PRE-SEED

GRANT

EXPLORATORYPRE-SEED

GRANT

RESEARCH

GRANT

NOVO NORDISK FOUNDATION AWARDS GRANTS FOR RESEARCH

NOVO A/S INVESTS IN LIFE-SCIENCE COMPANIES

INNOVATION VALUE CHAIN


The Articles of Association stipulate that one objective of the Novo Nordisk Foundation is to contribute to preserving and operating the research hospital activities of Novo Nordisk A/S. This support has its roots in the Foundation’s historical responsibility for Steno Memorial Hospital, which is now Steno Diabetes Center. In addition to operat-ing this hospital, the Foundation allocates some of its grants to re-search and education projects under the auspices of the Steno Health Promotion Center and the STAR (Steno Training and Application of Resources) project. The Steno Health Promotion Center focuses on the greatest diabetes-related challenges: lifestyles and attitudes. The Center conducts research on the best way of educating patients and how to prevent people from developing type 2 diabetes. The ap-proach involves integrating humanistic and medical research with the aim of making progress in this field. STAR is an international educa-tion project that supports education in diabetes in low- and medium-income countries. The overall aim of the project is to improve the lives of people with diabetes in low- and medium-income countries by providing education in the team-based management of diabetes and by disseminating knowledge on the latest research.

Another example of the global health perspective in a society- oriented project funded by the Foundation is the Bandim Health Project in Guinea-Bissau in western Africa. The Foundation has fund-ed the project for many years via a professorship, and the purpose is to document how the most basic health interventions such as vac-cinations and vitamin A supplementation affect child mortality. The Foundation partners with Denmark’s Ministry of Foreign Affairs in funding the project’s infrastructure.

Examples of other types of partnerships include the Foundation’s funding two cancer research centres in collaboration with the Danish Cancer Society. The first, the Research Centre for Cancer Diagnosis in Primary Care, is located at Aarhus University and the Research Unit for General Practice in Aarhus and conducts research on how to test for suspected cancer as quickly and as effectively as possible. The second, the Centre for Integrated Rehabilitation of Cancer Patients at the University of Copenhagen and Rigshospitalet – Copenhagen University Hospital, conducts interdisciplinary research based on the three core principles for the rehabilitation of people with cancer: early intervention, physical activity and utilizing the person’s own resources.

In collaboration with the Royal Danish Academy of Sciences and Let-ters, the Foundation has launched an initiative in which former Nobel Prize winners are invited to give celebratory lectures twice a year. The lectures are open to the public and are subsequently broadcast on Denmark’s DR2 television channel, thus disseminating science at the highest level to a large audience. An important objective is to inspire young researchers and students.

The Foundation also awards smaller grants for humanitarian and so-cial causes. The Foundation ensures that the humanitarian organiza-tions it supports focus on the health and welfare of people, that they are recognized organizations and that they publish publicly available audited statements of accounts. The Foundation’s grants for social causes are awarded to projects that promote the welfare of people in Denmark.

The charitable foundation

HEALTH AND PARTNERSHIPS


Steno Center for Health Promotion


Based on the motto “participation creates action competence”, Steno Health Promo-tion Center strives to integrate humanistic research with traditional medical research in the Center’s three focus areas: health pro-motion, disease prevention and patient education.

Novo Nordisk A/S and the Novo Nordisk Foundation fund the Center, which is an integrated part of Steno Diabetes Center. Bjarne Bruun Jensen manages the Center, and explains: “The goal of our work is to develop an international centre of excel-lence in research focusing on social change to create new knowledge that helps people with diabetes to improve their lives and that helps others to avoid getting diabetes.”

“To put it boldly, we act in the border zone between theory and practice and between research and reality. Our research approach is very educational and influenced by the humanities, and we therefore use scientific methods originating in such fields as an-thropology, educational theory and practice and phenomenology. This is different than the tradition at Steno, which has under-standably been oriented towards the natu-ral sciences, including biology. This differ-ence is a great advantage, because it forms the basis for interaction between disciplines, and it provides both synergy and dynamism in our work. The difference also means that we are still a new institution that is in the process of getting settled and creating our own niche.”

“We have been charged with a mission that involves working with the whole spectrum of disease prevention – primary, secondary and tertiary disease prevention. Thus, we work with healthy children in schools, with individuals who are at risk of developing dia-betes and with people who have diabetes. Our projects include both researchers and various arenas such as local communities, schools, workplaces and clinics. Although we work in these broad settings, all our proj-ects focus on several educational principles that we consider necessary to bring about sustainable health-promoting change.”

“Currently, our most advanced area is patient education, and we have developed several tools for educating patients under the head-ing of ‘the balancing person’. For exam ple, together with the Region of Southern Den-mark and several municipalities, we have developed a model that defines people with a chronic illness as people who must con-stantly focus on keeping their lives in bal-ance. This is why the education must fulfil the patient’s need for a holistic, clear, timely and coherent approach based on the whole person and not simply the disease. Another model we have developed involves encour-aging health professionals to adopt an edu-cational mindset. We have called this ‘the health education juggler’, because we think that this appropriately describes the com-plex work carried out by physicians and nurses when they really succeed in educa-ting patients. By choosing the concept of juggling, we indicate that these profession-

als have a range of roles and need to man-age them all simultaneously, from showing empathy and including everyone in the edu-cation to conveying specialist knowledge using easily understood language. We have integrated all this into a health education toolbox, which we are currently testing for the first time in practice in various hospitals, clinics, municipalities and health centres across Denmark.”

“Within preventing disease, we are working to develop more holistic initiatives in local communities to create healthy trends. A good example is our project in Bornholm, Denmark in which the mass media, supermarkets, schools and childcare centres will collaborate in helping families with children to live healthy lives. We call this approach the super-setting approach because it transcends traditionally delimited settings and instead aims for syn-ergy. Further, in health promotion, we are developing new methods that schools can use to get children to better understand health. In this, we are interested in seeing how technology, such as pedo meters, and theatre activities can promote healthy trends among children and adolescents. Finally, we have projects that focus on gestational dia-betes and on vulnerable groups of people at higher risk of devel oping diabetes.”

“Our plan is to become an internationally recognized centre of excellence within the next 10 years, with numerous publications and health promotion concepts behind us – as well as on our path going forward.”

THE BALANCING PERSON

THE RESEARCH FOCUSES ON STRENGTHENING PEOPLE’S ACTION COMPETENCE AND THEIR POTENTIAL TO LIVE A HEALTHY LIFE.

BJARNE BRUUN JENSEN, PROFESSOR AND DIRECTOR, STENO CENTER FOR HEALTH PROMOTION


The positive trends in the financial results of the Novo Group will enable the Foundation to increase its total grants signi-ficantly in the coming years to benefit research and society.

The Board has decided that the Foundation will gradually increase its total annual grants during the next three years from the current DKK 450 million (€60.6 million) to DKK 875 million (€117.8 million) in 2014. The Foundation will thus be able to influence the overall development of society, and the Foundation will take on this responsibility by striving over the long term to establish an international research beacon in Denmark within biomedicine and biotechnology.

The Foundation will continue to focus on the entire research chain – from educating and training researchers to innova-tion. Knowledge-based innovation requires strong basic and clinical research. At the same time, world-class research is linked to high-quality education. Interest in research must be kindled, opportunities for developing promising research talent must be created and the most talented people must be inspired to pursue a research career.

The Foundation is convinced that this long-term perspective, combined with substantial funding, will provide the most talented researchers with the appropriate conditions to develop their full potential. Giving researchers the freedom to test their ideas, no matter how risky these may be, cre-a tes the ideal prerequisites for generating useful research results of the highest quality that can make a difference.

Ulf J. Johansson, Chair of the Board, elaborates: “The Foun-dation will continue to mainly focus its grants on funding research in the public sector. Most of the increase in grants will be linked to strengthening, expanding and further ‘internationalizing the research in selected fields within bio medicine and biotechnology. We are increasing the grants awarded through the Foundation’s committees and are introducing several new types of grants. We are also launching new initiatives that will strengthen the Founda-tion’s cluster of research centres with the aim of obtaining a leading global position.”

The Foundation’s grant-awarding strategy and the future

LONG-TERM PERSPECTIVE AND COMMITMENT

LONG-TERM PERSPECTIVE AND COMMITMENT


IN 2011, THE BOARD OF THE NOVO NORDISK FOUNDATION ADOPTED THREE OVERALL STRATEGIC OBJECTIVES FOR THE FOUNDATION’S RESEARCH GRANTS:

4 STRENGTHEN BIOMEDICAL AND BIOTECHNOLOGY RESEARCH IN SELECTED FIELDS

4 FUEL CROSS-DISCIPLINARITY

4 ADVANCE INDIVIDUAL SCIENTIFIC EXCELLENCE


The year 2012 marks the 90th anniversary

of a lecture tour of universities on the east

coast of the United States undertaken by

August Krogh, a professor at the University

of Copenhagen who had received the

Nobel Prize in Physiology or Medicine in 1920.

During this visit, the recognized Danish

scientist took a detour to Toronto in

Canada. This not only changed the

lives of himself and his wife Marie

but also became the starting-point for

a unique scientific odyssey.

IT BEGAN WITH A JOURNEY

History of the Novo Nordisk Foundation

1920 22 2521 22 23August Krogh receives the Nobel Prize in Physiology or Medicine.

August and Marie Krogh return from North America with permission to manufacture insulin in Scan-dinavia.

Frederick Banting, a young Canadian surgeon, assisted by Charles Best, a medical student, successfully extract active insulin from a dog’s pancreasat the University of Toronto.

August Krogh, Hans Christian Hagedorn and August Kongsted agree to form a “nonprofit institution”, Nordisk Insulinlaboratorium. The first Danish insulin is manufactured in the basement of Hagedorn’s house north of Copenhagen, Villa Rødsten.

Harald and Thorvald Pedersen found Novo Terapeutisk Laboratorium and start selling Insulin Novo and Novo syringes.

August and Marie Krogh’s journey to North America led to the development of world-class insulin and the subsequent Danish business and export venture. It also led to the establishment of several foundations that, many years later, merged into today’s Novo Nordisk Foundation, which has donated several billion Danish kroner to medical and biotechnology research and to social causes.

August Krogh’s journey to Toronto led to

the development of world-class insulin and

the subsequent Danish business and export

venture. It also led to the establishment of

several foundations that, many years later,

merged into today’s Novo Nordisk Founda-

tion, which has donated several billion Danish

kroner to medical and biotechnology research

and to social causes.

In December 1922, on returning to Copen-

hagen with permission to manufacture in su-

lin based on the method developed and

patented by Canadian researchers, August

Krogh instinctively knew that he had a his -

toric opportunity and responsibility to change

the lives of thousands of incurably sick people

with diabetes in Denmark and the other

Nordic countries. In a commemorative pub -

lication from 1924, Krogh gave a compre-

hensive account of his role in securing the

permission and his own journey to Canada:

“I was soon convinced that it would be invaluable to bring the benefits of insulin to Denmark ...”

From the very beginning, the primary con-

siderations focused on the special scientific

and societal responsibilities associated with

producing life-saving medicine and how

this could best be ensured in a foun dation

structure. To put it another way, science and

public spirit were integral to the Group’s

history and raison d’être and have been ever

since. Today, this spirit is extremely important

for the Group and its activities: contributing

significantly to research and development

that improves the health and welfare of

people.

Nordisk Insulinlaboratorium and the Nor d isk

Insulin Foundation were created as a result

of an agreement to develop, manufacture

and sell insulin that August Krogh and

Hans Christian Hagedorn made with August

Kongsted, the owner of Løve Apoteket

(pharmacy) and Løvens kemiske Fabrik (now

LEO Pharma).

From the start, the founders placed the com -

pany and its responsibilities in a foundation

structure. Hagedorn, August Krogh and Kong-

sted comprised the formal Nordisk leadership

in both the company and the foundation

and, although all three were very diverse and

charismatic men, they agreed on one thing:

the profit from the sale of diabetes medicine

would be used for scientific and humanitarian

purposes. This was fully in accordance with the

agreement that August Krogh made with the

Insulin Committee of the University of Toronto.

In 1924, an event took place with far-reaching

consequences for the history of the Group.

As a result of a disagreement, Hans Christian

Hagedorn fired one of his most trusted em-

ployees, Thorvald Pedersen, a pharmacist and

chemist. His brother, Harald Petersen, a highly

valued employee working for August Krogh,

resigned out of loyalty to Thorvald.


2726

35 38 51 5526

38 42 5732

63

The Nordisk Insulin Foundation is estab-lished to support physiological and endo-crinological research.

Novo builds its first factory building on Fuglebakken in Frederiksberg. Danish architect Arne Jacobsen designs the building.

Novo opens Hvidøre Hospital.

The Novo Foundation is established, with Thorvald Pedersen as Chair and with both he and Harald Pedersen as life members of the Board.

The Novo Foundation awards its first grants and solicits applications for grants for medical research through advertisements.

The first Novo Prize is awarded to Erik Warburg.

Novo chooses the ancient Egyptian Apis bull for its logo.

Nordisk Insulinlaborato-rium builds its first factory in Gentofte. The Nordisk Insulin Foundation awards its first grants.

Steno Memorial Hospital (Niels Steensens Hospital) opens. People with diabetes with low incomes receive treatment free of charge.

Nordisk Insulinlab-oratorium awards its first scientific and humanitarian grants.

The Jacobæus Prize is established.

Steno Memorial Hospital Research Laboratory opens.

August and Marie Krogh’s journey to North America led to the development of world-class insulin and the subsequent Danish business and export venture. It also led to the establishment of several foundations that, many years later, merged into today’s Novo Nordisk Foundation, which has donated several billion Danish kroner to medical and biotechnology research and to social causes.

According to the people involved, the follow-

ing exchange took place:

The brothers went solo and established their

own insulin company: Novo Terapeutisk

Laboratorium (later Novo Industri A/S), the

start of another important branch of the Novo

Nordisk Foundation’s family tree.

The die was now cast for decades of rivalry

between two companies, two images and

two cultures, but both with the same overall

objective: to develop and manufacture world-

class diabetes medicine.

Hagedorn, August Krogh and Kongsted

belonged to the established social and intel-

lectual elite with deep roots in the world of

science and its way of thinking and pathos;

the Pedersen brothers could not display the

same impressive achievements or network.

They therefore described themselves as

manufacturers and virtually boasted about

having a totally different background than

their previous employers.

The differences could not have been greater.

Nevertheless, although the Pedersen brothers

starting the Novo branch did not have the

same thorough understanding of diabetes,

the same scientific background or even the

same knowledge about manufacturing and

selling pharmaceutical products as the Nordisk

branch, their entrepreneurial spirit, inventive-

ness and perseverance compensated for these

disadvantages. August Krogh had to eat his

slightly condescending words. Harald and

Thorvald Pedersen managed – and then some.

But they did it in their way, and their approach

to the task differed decisively.

The Pedersen brothers did not initially estab-

lish a foundation equivalent to the Nordisk

Insulin Foundation, the main task of which

was to award grants for scientific research.

The Novo Foundation was not established

until 1951, nearly three decades after the

Nordisk Insulin Foundation was created, with

Thorvald Pedersen as Chair and with both he

and Harald Pedersen as life members of the

Board.

The Novo Foundation was mainly a founda-

tion with corporate interests with the clear

mission of ensuring the survival of Novo

Terapeutisk Laboratorium and developing the

business optimally. The Foundation began to

award grants regularly in the early 1960s in

medicine, veterinary sciences, natural sciences,

business, the humanities and humanitarian

causes.

In 1973, Novo Terapeutisk Laboratorium and

Novo Industri merged and became Novo

Industri A/S, the internationally known name.

In 1974, Novo Industri A/S was listed on the

August Krogh: “What are you going to do?”Harald Pedersen: “We want to make insulin.”August Krogh: “Well, you’ll never manage that.”Harald Pedersen: “We will show you!”


NORDISKINSULIN FOUNDATION

NORDISKGENTOFTE

NORDISKINSULINLABORATORIUM

HAGEDORNRESEARCH LABORATORY

STENO MEMORIAL HOSPITAL

74 8580

65 6690

NOVO FOUNDATION

NOVO INDUSTRI

84

69

92The Nordisk Insulin Foundation advertises for grant applications for the first time.

The Hagedorn Prize is awarded for the first time.

Nordisk Insulinlaboratorium is reorganized as a foundation with three divisions: Nordisk Gentofte A/S, Hagedorn Research Laboratory and Steno Memorial Hospital.

The Novo Nordisk Foun-dation is established with the merger of Nordisk Insulinlaboratorium, the Nordisk Insulin Foundation and the Novo Foundation. The Novo Nordisk Foun-dation provides the stable basis for Novo Nordisk and awards grants.

Clinical research scholarships are awarded for the first time.

The Novo Nordisk Foundation gets an independent admin-istration and director, Ulrik V. Lassen. Hvidøre Hospital and Steno Memorial Hospital merge to become Steno Diabetes Center.

The August Krogh Prize is established (renamed the Marie and August Krogh Prize in 2008).

Novo Industri A/S is listed on the Copenhagen Stock Exchange.

The Novo Foundation establishes a commit-tee to award grants within the human-ities and for human-itarian causes.

The Hallas-Møller Scholarship is awarded for the first time.

Copenhagen Stock Exchange, with the Novo

Foundation retaining a controlling interest in

accordance with the Articles of Association

and the owners’ wishes.

The competitors, Nordisk Insulinlaboratorium,

followed a different path. Despite massively

investing during that period in new sites and

factory buildings, the company was initially

self-financing.

On the Nordisk branch, the management

reorganized into three divisions: 1) the com-

mercial part called Nordisk Gentofte A/S;

2) Steno Memorial Hospital Research Lab-

oratory, which was renamed the Hagedorn

Research Laboratory; and 3) Steno Memorial

Hospital. The Nordisk Insulin Foundation

continued to award grants.

More than a decade after Novo Industri A/S

was listed on the Copenhagen Stock Ex change,

Nordisk Gentofte followed suit.

How was the stage set in the mid-1980s?

Two pharmaceutical companies, large by

Danish standards but small in global terms,

were operating within a few kilometres of each

other, both manufacturing insulin as their core

business. Both companies were pursuing the

same markets, the same researchers and the

same scientific personnel, which were vital to

the future development of the companies.

There was talk of a possible merger in the

circles around the two companies and their

respective foundations.

The discreet feelers came to nothing, at least

at first. The historical, cultural and personal

barriers were too great. August Krogh’s

words to Harald Pedersen in 1924, “You’ll

never manage that”, and Pedersen’s reply,

“We will show you”, were perhaps no longer

prominently displayed in the corridors of the

respective companies, but the voices of the

past and the fierce competition between them

had not been forgotten.

Nevertheless, in January 1989 the boards of

the two foundations with corporate interests,

Novo Foundation and Nordisk Insulinlabora-

torium, issued a press release that unleashed

tremendous external attention on the two

companies and was the equivalent of a palace

revolution internally.

The press release was short and sweet: “The

Boards of the Novo Foundation and Nordisk

Insulinlaboratorium have agreed to merge

the two foundations into the Novo Nordisk

Foundation.” The press release did not merely

culminate one of the largest mergers in

Denmark’s corporate history; it was also an

event that all employees of Nordisk and Novo,

from the directors’ offices to the warehouses,

will never forget.

But what led to this situation? How did

events lead to the merger? The short answer

can be summarized using some of the same

terms that characterized August Krogh, Hans

Christian Hagedorn, August Kongsted and


NOVO NORDISK

89

40 NOVO NORDISK FONDEN

million

99 07 10 110096 02The Novo Nordisk Foundation estab-lishes Novo A/S as a wholly owned subsidiary to manage the Foundation’s endowment and ownership of Novo Nordisk A/S and Novozymes A/S.

The Committee on Clinical Nursing Research is estab-lished. The Novo Nordisk Foundation moves to a house in Gentofte near Copenhagen.

The Humanities Committee is renamed the Committee on Art History Research.

The Committee on General Practice and Family Medicine Research is established, with Niels Bentzen as the Chair.

The Foundation donates DKK 600 million (€80.7 million) to establish the first research centre in a cluster of centres.

The Foundation’s two purposes – commercial and societal – are combined under one roof at offices in Hellerup north of Copenhagen.

The Foundation sets new strategic goals for awarding grants and decides to increase its total annual grants from DKK 450 million (€60.6 million) in 2011 to DKK 875 million (€118 million)in 2014.

1920, 1922, 1969 and pages 36 and 41: Royal Library1942: Swedish Society of Medicine1996: Colourbox2002: Willi Hansen2007: Thomas Willads2010: Miklos SzaboOther photos: Novo Nordisk History and Art Collection and the Foundation’s archives

PHOTOS:


the Pedersen brothers when they started out

in the 1920s: considerable foresight, vision,

courage, business sense and a strong desire

to safeguard the future of the companies and

thus the awarding of grants for scientific and

humanitarian purposes.

Common sense was also an ingredient,

because a merger had obvious advantages.

Most importantly, the merger would bring a

totally different force behind the Foundation’s

mandate “... to provide a stable basis for the

commercial and research activities ... ”.

A merged company was also clearly expected

to be able to generate greater profit and

thus be able to increase the grants for health

research, and this assumption turned out to

be very true.

The Novo Nordisk Foundation thus came into

being. Merging the predecessor foundations

allowed one foundation to exercise the con-

trolling interest in Novo and Nordisk, which

thereby enabled the two companies to merge

into Novo Nordisk A/S.

However, almost three years elapsed before

the Novo Nordisk Foundation became an

independent actor with its own management

and administration instead of existing in a

drawer in the offices of Novo Nordisk’s CEO.

Not until 1999–2000 did the Foundation step

into the limelight in its own right, a result of

major changes in the Novo Group. The deci-

sion was made to split the company into two

– one for health care, which retained the name

Novo Nordisk A/S, and one for the enzyme

business, which became Novozymes A/S.

Since the Foundation is the majority share-

holder of Novo Nordisk A/S and Novozymes

A/S, the demerger had a major effect on the

Foundation. The personal overlap between

the Foundation and the companies was

reduced by establishing separate boards with

new members for the two companies. In

addition, the Foundation also took the bold

new initiative of establishing a wholly owned

subsidiary, Novo A/S, the main tasks of which

are to manage the Foundation’s interests in

the two operating companies, to implement

the stable basis for the companies and to

ensure sufficient income for the Foundation’s

grant activities.

Thus, what started as a promising journey to

Toronto 90 years ago has developed today

into a great Danish business venture. The

Novo Nordisk Foundation has awarded thou-

sands of grants, primarily for health research,

with the funding increasing significantly in

recent years.

From 2005 until the end of 2011 alone, the

Novo Nordisk Foundation has awarded grants

exceeding DKK 3.5 billion (€400 million)

and Novo A/S has invested DKK 4 billion

(€540 million) in biotechnology companies.

The Foundation’s journey continues.


Novo A/S is a private limited liability company wholly owned by the Novo Nordisk Foundation and the holding company of the Novo Group. The Foundation established Novo A/S in 1999 to manage the Foundation’s endowment optimally.

When Novo A/S was established, the combined assets of the Foun-dation and Novo A/S not linked to Novo Nordisk A/S and Novozymes A/S amounted to about DKK 600 million (€80.7 million). Today, 11 years later, these assets have increased to about DKK 23 billion (€3.1 billion); a significant portion is invested long term in unlisted bio-technology companies, some is reserved for grants that have been awarded but not paid and a major portion was recently invested long term in Chr. Hansen A/S.

Excluding these items, the reserve fund is about DKK 11 billion (€1.5 billion) and is primarily invested in equities and bonds that can be sold quickly if necessary. Novo A/S expects this reserve fund to grow by about DKK 3 billion (€400 million) annually. The purposes of this reserve fund include being able to support any Novo Group com-pany that needs to raise capital, being able to pursue new investment opportunities and earning a return on endowment that will contri-bute to the Foundation’s capacity to award grants. The substantial growth in both the current dividends from Novo Nordisk A/S and Novozymes A/S and the return on the investments made by Novo A/S has opened new perspectives for the grant-awarding activities of the Novo Nordisk Foundation.

The main activities of the holding and investment company Novo A/S are:

4 to exercise its ownership of Novo Nordisk A/S and Novozymes A/S

4 investing in life-science companies:

• in the seed phase • in the venture phase • in the growth equity phase

4 other investments:

• in well-managed profitable biomedical and bioindustrial companies • financial investments, primarily in equities and bonds.

The holding and investment company

NOVO A/S A STABLE BASIS


INSIGHTTRUST

PROFESSIONALISMCommitment

WE INVEST IN COMPANIES THAT DEVELOP ATTRACTIVE, MARKETABLE PRODUCTS BASED ON UNIQUE SCIENCE AND THAT HAVE INSIGHTFUL MANAGEMENT. OUR ACTIVE OWNERSHIP ENABLES US TO USE OUR FINANCIAL CAPACITY AND LONG-TERM FOCUS TO LAY A STABLE BASIS FOR CREATING LASTING VALUE.

HENRIK GÜRTLER.CEO, NOVO A/S


The Novo companies

CONTROLLINGOWNERSHIP

Novo A/S is obligated to maintain a controlling interest in Novo Nordisk A/S and Novozymes A/S, the Novo Group’s two large publicly listed companies. The A (multiple voting rights) shares in the two companies are unlisted and are not traded. In both Novo Nordisk A/S and Novozymes A/S, the A shares have voting rights that are 10 times greater than those of the B (ordinary) shares.

This special share structure with shares with multiple voting rights defends the companies in practice against any hostile takeover and ensures that the companies can plan their activities on a long-term basis and remain in Danish ownership. This places a special respons-ibility on Novo A/S to manage its controlling ownership in the best interests of the companies and with due respect for the interests of the minority shareholders.

Henrik Gürtler, CEO of Novo A/S, explains: “It is worth noting that Novo A/S, despite being the majority shareholder in both Novo Nord isk A/S and Novozymes A/S, invites influence by minority shareholders. This is reflected in us being a minority on the boards of both companies, and the entire board as a whole naturally makes the decisions. This is a very intentional choice.”

Most assets of Novo A/S comprise its portfolio of shares in Novo Nordisk A/S and Novozymes A/S. Novo A/S derives income from its ownership of Novo Nordisk A/S and Novozymes A/S from the annual dividends and from the sale of B (ordinary) shares owned by Novo A/S as part of the companies’ share buybacks. The total annual income is billions of Danish kroner.

novo nordisk


NOVO NORDISK A/S

Novo Nordisk A/S is a global health care company with 89 years of innovation and leadership in diabetes care. The company also has leading positions within haemophilia care, growth hormone therapy and hormone replacement therapy. Headquartered in Denmark, Novo Nordisk A/S employs about 33,000 employees in 74 countries and markets its products in 179 countries. In 2011, Novo Nordisk A/S had revenue of DKK 66.3 billion (€8.9 billion).

At the end of 2011, Novo A/S owned A and B shares in Novo Nord-isk A/S equivalent to 25.5% of the share capital and 72.1% of the votes. The total value of the combined shareholding is 97.6 billion (€13.1 billion), based on the unlisted A shares being valued at the same price as the B shares.

Of the 12 members of the Board, eight are elected at the annual general meeting, with five independent external members and three Novo A/S representatives. The employees elect the remaining four members.

NOVOZYMES A/S

Novozymes A/S is the world leader in bioinnovation. Together with customers across a broad array of industries, Novozymes creates tomorrow’s industrial biosolutions that enhance customers’ business-es and safeguard the world’s resources. Novozymes develops and

produces industrial enzymes, microorganisms and biopharmaceuti-cal ingredients. Other companies use these products to manufacture such products as biofuels, detergents, foodstuffs and feedstocks. Generally speaking, Novozymes solutions simplify and optimize its customers’ production processes. Sustainability is an integral part of Novozymes’ business, and the company’s products enable custom-ers to save energy and raw materials and to reduce the waste pro-duced. Novozymes is continually exploring the potential of nature, as evidenced by more than 6000 patents.

In 2011, Novozymes A/S had revenue of DKK 10.5 billion (€1.4 billion). Headquartered in Denmark, Novozymes has more than 5500 employees worldwide. The company markets more than 700 pro-ducts in 130 countries.

At the end of 2011, Novo A/S owned A and B shares in Novozymes A/S equivalent to 25.5% of the share capital and 70.1% of the votes. The total value of the combined shareholding is DKK 14.7 billion (€2.0 billion), based on the unlisted A shares being valued at the same price as the B shares.

Of the 10 members of the Board, seven are elected at the annual general meeting, with five independent external members and two Novo A/S representatives. The employees elect the remaining three members.

novozymes


NOVO SEEDS

The Novo Nordisk Foundation and Novo A/S launched Novo Seeds in 2007. It has two important objectives: awarding pre-seed grants to promising product-focused projects in the life sciences and seed financing for new start-ups and initiatives that are not mature enough in development for venture funding.

Novo A/S awards pre-seed grants in partnership with the Novo Nord-isk Foundation for projects that are still at the ideas stage but require financial support to enable testing and development. Novo A/S does not expect anything in return and makes no claims on equity.

The seed programme invests in projects on commercial terms. In ad-dition to the capital Novo A/S provides, Novo Seeds also contributes management and strategic inspiration to projects and biotechnology companies.

The aim is to encourage and contribute to developing a dynamic bio-technology environment in Denmark and the other Nordic countries by giving universities and early-stage companies the opportunity to test the commercial potential of the most promising research discov-eries in the life sciences.

Investment in the life sciences

CATALYSINGCOMMERCIALIZATION

NOVO VENTURES

Novo A/S created Novo Ventures in 2000 with the aim of investing in life sciences companies that have substantial commercial poten-tial based on original product development. Novo Ventures operates from locations in Copenhagen, London and San Francisco. Since 2000, Novo Ventures has invested DKK 3.6 billion (€484 million) in 74 companies with pioneering new products and technologies that can potentially improve the lives of thousands of people worldwide. After a development stage, some companies are sold to pharma-ceutical and medical technology companies and provide a significant return on investment, such that Novo Ventures is one of the most successful and respected venture teams in this field.

Søren Carlsen, Managing Partner in Novo Ventures, explains: “We aim to generate profit based on research and product development. We achieve this by developing ideas and projects in individual life sciences companies that both have commercial potential and provide important new knowledge. We want to catalyse the commercial -

ization of discoveries and innovation. Our concept has proved to be especially successful thanks to our talented staff, the strong finan-cial support of Novo A/S and a flexible time frame that allows us to stay onboard and support the company until the time is right to sell. During the time when we help to develop the companies, the partners of Novo Ventures can provide strategic support through our participation on the boards and share our extensive network.”

Henrik Gürtler, CEO of Novo A/S, adds: “We have had the privilege of being able to structure our venture activities as an evergreen fund based on the significant income received by Novo A/S. We have been able to maintain our investments and manage them with the long term firmly in mind, in contrast with others that have had to exit early because of their financing structure. This is really useful when we operate in a field in which developing a drug from start to finish often requires 10–15 years.”


WE HAVE BEEN ABLE TO MAINTAIN OUR INVESTMENTS AND MANAGE THEM WITH THE LONG TERM FIRMLY IN MIND, IN CONTRAST WITH OTHERS THAT HAVE HAD TO EXIT EARLY BECAUSE OF THEIR FINANCING STRUCTURE. THIS IS REALLY USEFUL WHEN WE OPERATE IN A FIELD IN WHICH DEVELOPING A DRUG FROM START TO FINISH OFTEN REQUIRES 10–15 YEARS. HENRIK GÜRTLER.

CEO, NOVO A/S

ORPHAZYME APS

Orphazyme was founded based on the pion-

eering discovery by Marja Jäättela and

Thomas Kirkegaard Jensen emerging from a

research project for the Danish Cancer Society

that human heat-shock protein 70 (HSP70)

can be used to revert the lysosomal patho-

logy in cells from people with a group of rare

genetic disorders called lysosomal storage

diseases. This discovery led to the founding

of Orphazyme in 2009 by Thomas Kirkegaard

Jensen and Anders Hinsby. The Novo Nordisk

Foundation awarded Orphazyme a pre-seed

grant of DKK 1.9 million (€257,000) to research

the potential of HSP70 by carrying out a series

of in vivo experiments. The project looked

promising enough within 6 months that Novo

Seeds invested DKK 13 million (€1.75 million)

in Orpha zyme. Since then, Novo Ventures

invested DKK 32 million (€4.3 million) in

Orphazyme in 2011. Thomas Kirkegaard

Jensen, Chief Scientific Officer and co-founder

of Orphazyme, says: “The capital from Novo

Seeds has enabled us to take a more com-

mercial approach to our work. This means

that we have been able to develop the project

much more rapidly than if we had continued

as an academic research project. Having the

opportunity to hire the right employees

and being able to focus intensely on the

project has enabled us to substantially acce l-

erate development towards clinical trials.”

www.orphazyme.com

REATA PHARMACEUTICALS INC.

Reata Pharmaceuticals develops new drugs

for treating kidney disease and inflamma-

tory diseases. Reata has developed its lead

product, bardoxolone methyl, to treat

people with chronic kidney disease, a

serious and life-threatening condition that

affects millions of people worldwide, who

often have diabetes and hypertension.

The investment of DKK 236 million (€31.8

million) in Reata represents Novo Ventures’

largest investment so far. Reata’s leading

project, which is now undergoing a global

Phase 3 clinical trial, has attracted enor-

mous international interest, with Abbott

paying almost USD 1 billion for exclusive

rights to develop and commercialize Reata’s

programmes and technologies outside the

United States and certain markets in Asia.

Reata retains deve lopment and commercial-

ization rights in the United States.

www.reatapharma.com

SYMPHOGEN A/S

Symphogen A/S develops recombinant human polyclonal antibodies and produces them using modern biotechnological pro -cesses on an industrial scale. The advantage of this method is that they can simultane-ously generate a variety of antibodies that are all specific to the cause of a particular disease or infection, such as a bacteria, virus or cancer cell. By using industrial processes, Symphogen can quickly produce large quantities of these antibodies while

avoiding the risks of disease transmission or donor supply shortages – factors that are important in the conventional isolation of polyclonal antibodies from healthy or vaccinated donors. Symphogen focuses on developing antibodies for treating people with cancer. By the end of 2011, Novo A/S had invested DKK 214 million (€28.8 million) in Symphogen.www.symphogen.com

EXAMPLES OFINVESTMENTS


NOVO GROWTH EQUITY

In 2009, Novo A/S significantly increased its commitment within the life sciences by founding Novo Growth Equity. The mandate is to invest venture capital in promising pri vate and publicly listed life sciences com panies with products in late clinical development or early commer cia lization. With Novo Growth Equity as an investment partner, portfolio companies have access to considerable financing capacity, an inte r-national network of life sciences expertise and diverse types of specialized knowledge to help companies work towards becoming self-financing commercial companies. Since 2009, Novo Growth Equity has invested DKK 1.4 billion (€188 million) in three companies.

Ulrik Spork, Managing Partner in Novo Growth Equity, says: “Our ambition is to catalyse the efforts of our portfolio com - pa nies to achieve their full commercial poten tial. As a long-term and active inves tor, we focus on maturing the companies and creating intrinsic, long-lasting value based on achieving commercial targets.”

ARCHIMEDES PHARMA LTD.

In 2010, Novo Growth Equity provided one

of the largest capital injections raised by a

private European life sciences company for

many years when it invested in Archimedes

Pharma, an international specialty pharma-

ceutical company headquartered in the United

Kingdom. By the end of 2011, and following

additional investments, Novo A/S became the

majority shareholder with a total investment

of nearly DKK 900 million (€121 million).

The company is in the process of launching

its lead product, a promising fentanyl pectin

nasal spray, in Europe and the United States.

It manages breakthrough pain among adults

who are already receiving maintenance opioid

therapy for chronic cancer pain.

www.archimedespharma.com

OUR AMBITION IS TO CATALYSE THE EFFORTS OF OUR PORTFOLIO COMPANIES TO ACHIEVE THEIR FULL COMMERCIAL POTENTIAL. AS A LONG-TERM AND ACTIVE INVESTOR, WE FOCUS ON MATURING THE COMPANIES AND CREATING INTRINSIC, LONG-LASTING VALUE BASED ON ACHIEVING COMMERCIAL TARGETS. ULRIK SPORK, MANAGING PARTNER,

NOVO GROWTH EQUITY

Novo A/S invests about DKK 1.6 billion (€ 215 million) annually in companies at the seed, venture and growth equity phases within the life sciences.

Nevertheless, Novo A/S still generates significant additional capital. Novo A/S strives to invest this long term in well- managed, profitable companies in biomedicine and industrial biosolutions to which Novo A/S can add value as an active owner. These investments are intended to provide a return similar to those of Novo’s existing investments in Novo Nordisk A/S and Novozymes A/S, thereby helping to expand and strengthen the commercial basis of the earnings of Novo A/S. One example is Novo A/S purchasing just over one quarter of the shares in the Danish company Chr. Hansen A/S for DKK 4.1 billion (€ 552 million) in January 2012. Further major corporate investments are expected in the coming years.

The money that Novo A/S has not invested in major sharehold-ings in companies and does not allocate for future or current un-disbursed grants from the Novo Nordisk Foundation is invested in a portfolio of well-diversified assets in shares and bonds to ensure sufficient liquid funds to service any new requirements from the Novo companies and the Novo Nordisk Foundation. The return on these investments contributes significantly to funding the Foundation’s grants.

Thorkil Kastberg Christensen, Chief Financial Officer, Novo A/S, explains: “We work hard to find the best investment managers in the world to help us build and maintain a global portfolio of shares that delivers a better return than the market average. We invest long term and adhere to the value principle: we prefer to purchase inexpensively, but the company has to be sustainable and have growth potential.”

Other investments

GROWTH AND CAPITAL


WE INVEST LONG TERM AND ADHERE TO THE VALUE PRINCIPLE: WE PREFER TO PURCHASE INEXPENSIVELY, BUT THE COMPANY HAS TO BE SUSTAINABLE AND HAVE GROWTH POTENTIAL.

THORKIL KASTBERG CHRISTENSEN,CHIEF FINANCIAL OFFICER, NOVO A/S


ResearchEducationDevelopmentInnovationInternationalization Investment

“Ourvisionistocontributesignificantlytoresearchand

development that improves the health and welfare of people.”

ULF J. JOHANSSON. CHAIR OF THE BOARD, NOVO NORDISK FOUNDATION AND CHAIR OF THE BOARD, NOVO A/S


TUBORG HAVNEVEJ 19

DK-2900 HELLERUP

DENMARK

TEL. +45 3527 6600

[email protected]

WWW.NOVONORDISKFOUNDATION.COM

NOVO NORDISK FOUNDATION: WHY AND HOW?

Concept and design: Maria Elskær Grafisk DesignInterviews: Mannov A/STranslation: David Breuer and Robin A.P. WorrallPrinting: Bording PRO asConcept photos: Henrik Sørensen

Photos: Ernst Tobisch, pages 4, 7, 43 and 50; Jesper Ludvigsen, page 10; Willi Hansen, pages 13 and 14; Tom Ingvardsen, page 32.

© 2012 by the Novo Nordisk Foundation. All rights reserved. Printed in 2012

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