Novo Nordisk Foundation

The Novo Nordisk Foundation is a Danish enterprise foundation headquartered in Hellerup. It supports scientific, humanitarian and social purposes, with its principal areas of activity spanning biomedicine, biotechnology, health, sustainability, education and life-science innovation. Unlike a conventional charitable foundation that relies mainly on donations or an endowment invested across unrelated assets, the foundation is built around a long-term ownership model. Through its wholly owned investment company, Novo Holdings A/S, it exercises controlling voting rights in Novo Nordisk A/S and Novonesis A/S, formerly known as Novozymes A/S. Dividends and investment returns from these holdings provide the financial base for its grants and other initiatives. The foundation's institutional history reaches back to the Danish insulin industry of the 1920s. Professor August Krogh obtained Scandinavian rights to produce insulin in 1922, and Nordisk Insulinlaboratorium was established the following year. In 1926, a foundation ownership arrangement was created so that profits from the insulin enterprise could support the continuity of the business and scientific work. A separate enterprise, Novo Terapeutisk Laboratorium, developed alongside Nordisk. The two companies merged in 1989 to create Novo Nordisk A/S, while the associated foundation structures were consolidated into the organization that became the modern Novo Nordisk Foundation. The foundation has since evolved from an ownership vehicle connected to an industrial company into one of the world's largest philanthropic foundations by assets. Its purpose is not limited to supporting projects directly related to Novo Nordisk's commercial products. Grants may support basic and applied research, clinical and public health work, nursing, general practice, family medicine, environmental research, education, humanitarian activity and social initiatives. The foundation also funds research infrastructure, fellowships, investigator programmes, partnerships and impact investments in companies or projects intended to generate social or environmental benefits. Its grantmaking has expanded significantly in the 2010s and 2020s. Funding has included major support for Danish universities and research institutions, international health collaborations, science education and initiatives addressing climate, nutrition, infectious disease and antimicrobial resistance. The foundation also awards scientific and teaching prizes, including prizes associated with medical science, biotechnology, environmental research and science education. The foundation's influence is closely connected to the scale of its ownership. Novo Holdings manages the foundation's assets and acts as the controlling shareholder of Novo Nordisk and Novonesis. The foundation has a minority of the total equity in each company but a majority of the voting rights because of the companies' dual-class share structures. This arrangement allows the foundation to pursue long-term ownership while preserving the operating independence of the companies. The model has also made the foundation a powerful participant in Danish research and innovation policy. That influence has generated debate. Supporters argue that enterprise foundations can provide patient capital and stable, long-term research funding without the short-term pressures associated with publicly traded investment companies. Critics have raised concerns about the concentration of research resources, the possibility that the foundation's strategic priorities could shape the national research agenda, and the uneven distribution of grants among established and early-career researchers. In response to concerns about bias and concentration, the foundation has tested partial randomization in parts of its grant-allocation process. The foundation remains active and globally oriented, combining stewardship of a major life-science ownership structure with philanthropic programmes intended to…

The modern Novo Nordisk Foundation emerged from the Danish insulin industry's distinctive combination of commercial enterprise and foundation ownership. In 1922, Professor August Krogh obtained rights to produce insulin in Scandinavia after insulin had been discovered in Canada. Nordisk Insulinlaboratorium was established in 1923, and in December 1926 an ownership model was introduced under which profits from the insulin business could be directed to a foundation. The arrangement was intended to protect the enterprise over the long term while ensuring continued support for scientific research. A second Danish insulin company, Novo Terapeutisk Laboratorium, developed independently. For much of the twentieth century, Novo and Nordisk operated as separate businesses, both contributing to Denmark's growing pharmaceutical and biotechnology capabilities. Their foundations and ownership arrangements likewise developed separately. In 1989, the companies merged to form Novo Nordisk A/S. The associated foundation structures were consolidated as part of the merger, establishing the institutional basis for the present Novo Nordisk Foundation. After the merger, the foundation retained a long-term ownership role while progressively expanding its philanthropic function. Its resources came primarily from dividends and investment returns connected with the Novo enterprise. Novo Holdings A/S became the foundation's wholly owned investment and holding subsidiary, responsible for managing the foundation's wealth and preserving its controlling position in the principal Novo Group companies. The foundation's grantmaking broadened beyond direct biomedical research. It supported universities, hospitals, research infrastructure, fellowships, education, general medicine, nursing, humanitarian work and social programmes. In later decades, biotechnology, environmental research, sustainability and life-science innovation became increasingly important. The foundation also developed awards recognizing achievements in medical science, biotechnology, environmental research and science teaching. During the 2010s and 2020s, the financial scale of the foundation and its annual grantmaking increased substantially, helped by the performance and growth of its major holdings. The organization became one of the most important private sources of research finance in Denmark and expanded its international partnerships. Its programmes have addressed global health, climate-related health risks, infectious diseases, antimicrobial resistance, nutrition and scientific capacity. The foundation's enterprise model has brought both praise and criticism. Its supporters view permanent ownership and a large, professionally managed asset base as a way to provide stable funding for long-horizon research and innovation. Critics argue that the concentration of financial power may influence which research fields, institutions and investigators receive support. Concerns have also focused on the relative advantage of established researchers and the potential narrowing of scientific diversity. The foundation has responded in part by experimenting with partial randomization in selected grant processes. The foundation remains a self-governing entity without conventional owners. Through Novo Holdings, it continues to control voting rights in Novo Nordisk and Novonesis while distributing grants and making investments in support of health, sustainability, science, education and social purposes. Its identity therefore rests on two linked roles: steward of a major life-science ownership structure and philanthropic funder with increasingly global reach.

• 2024

  Global science and AI initiatives expanded

  [1]Novo Nordisk Foundationen.wikipedia.org

  The foundation convened a global science summit, announced an international health-research partnership and supported development of Denmark's Gefion AI supercomputer.

• 1989

  Novo and Nordisk merge

  [1]Novo Nordisk Foundationen.wikipedia.org

  Novo Terapeutisk Laboratorium and Nordisk Insulinlaboratorium merged to create Novo Nordisk A/S, and the associated foundation structures were consolidated.

• 1926

  Foundation ownership model introduced

  [1]Novo Nordisk Foundationen.wikipedia.org

  Profits from Nordisk Insulinlaboratorium were placed within a foundation ownership structure intended to protect the enterprise and support research.

• 1923

  Nordisk Insulinlaboratorium established

  [1]Novo Nordisk Foundationen.wikipedia.org

  Nordisk Insulinlaboratorium was founded as an early Danish insulin producer.

• 1922

  Scandinavian insulin production rights obtained

  [1]Novo Nordisk Foundationen.wikipedia.org

  Professor August Krogh obtained rights to produce insulin in Scandinavia, helping establish the institutional foundations of Denmark's insulin industry.

A long-term, science-led enterprise foundation using controlling ownership of major life-science companies to finance philanthropy, research, innovation and social initiatives.

• Research funding

  Open-competition research grants

  Competitive grants awarded through calls open to academic researchers. They include project-focused support and longer-term awards for research leaders, with emphasis on scientific quality and the foundation's health, sustainability and life-science priorities.

• Research funding

  Stand-alone grants

  A broad family of grants awarded after peer review, including project grants, investigator and research-leader grants, fellowships and research-infrastructure support. These programmes fund both established researchers and selected emerging scientific talent.

• Strategic philanthropy

  Partnerships and impact investments

  The foundation works with public, private and philanthropic partners and can invest in companies or initiatives intended to produce positive health, environmental or social outcomes. This approach extends its role beyond conventional grants into innovation finance and institution building.

• Awards

  Scientific and teaching prizes

  The foundation sponsors prizes recognizing achievements in medical science, biotechnology, environmental research and science education. Awards include the Novo Nordisk Prize, the Novozymes Prize, the Marie and August Krogh Prize, the Jacobaeus Prize and multiple prizes for teachers and educators.

• 2024Global Science Summit

  Denmark · Global

  A summit convened scientific leaders to examine health, sustainability and technology challenges and to announce new international funding commitments.

  Outcome. The event was associated with a three-organization commitment by the Novo Nordisk Foundation, Wellcome and the Bill & Melinda Gates Foundation to support global-health research, particularly in low- and middle-income countries.

  Source

• 2024

  Support for the Gefion AI supercomputerStrategy

  Background

  The foundation sought to strengthen Danish capabilities in artificial intelligence and computational research.

  Action taken

  It partnered with the Export and Investment Fund of Denmark through the Danish Centre for AI Innovation to co-fund a national AI supercomputer later named Gefion.

  Aftermath

  The initiative broadened the foundation's visible technology and research-infrastructure role beyond its traditional biomedical focus.

  Source

• 1989

  Consolidation of the Novo and Nordisk enterprisesM&A

  Background

  Novo Terapeutisk Laboratorium and Nordisk Insulinlaboratorium had operated separately for decades before combining their businesses and associated foundation structures.

  Action taken

  The companies merged to form Novo Nordisk A/S, creating the modern basis for the foundation's long-term ownership model.

  Aftermath

  The foundation developed from an industrial ownership structure into a large philanthropic and investment institution.

  Source

• Partial randomization in grant allocationStrategy

  Background

  Debate about concentration of research funding and possible advantages for established researchers raised questions about bias and diversity in competitive grantmaking.

  Action taken

  The foundation introduced partial randomization in selected allocation processes as a trial intended to reduce bias and broaden the range of funded research.

  Aftermath

  The approach was subject to evaluation during a multi-year trial; the available reference material does not establish a final assessment.

  Source

1. 1Novo Nordisk Foundationen.wikipedia.org
2. 2Novo Nordisk Foundation official websitenovonordiskfonden.dk