Novo Nordisk Explained

Novo Nordisk A/S
Type:Public
Industry:Pharmaceuticals, Health care
Revenue: (2023)
Operating Income: (2023)
Net Income: (2023)
Assets: (2023)
Equity: (2023)
Num Employees: 64,319 (end 2023)
Hq Location City:Bagsværd
Hq Location Country:Denmark
Owner:Novo Holdings A/S (28%)
Footnotes:[1] [2]

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd[3] with production facilities in nine countries and affiliates or offices in five countries. Novo Nordisk is controlled by majority shareholder Novo Holdings A/S which holds approximately 28% of its shares and a majority (77%) of its voting shares.[4]

Novo Nordisk manufactures and markets pharmaceutical products and services, specifically diabetes care medications and devices.[5] Its main product is the drug semaglutide, used to treat diabetes under the brand names Ozempic and Rybelsus and obesity under the brand name Wegovy.[6] Novo Nordisk is also involved with hemostasis management, growth hormone therapy, and hormone replacement therapy. The company makes several drugs under various brand names, including Levemir, Tresiba, NovoLog, Novolin R, NovoSeven, NovoEight, and Victoza.

Novo Nordisk employs more than 48,000 people globally, and markets its products in 168 countries.[7] The corporation was created in 1989, through a merger of two Danish companies, which date back to the 1920s. The Novo Nordisk logo is the Apis bull, one of the sacred animals of ancient Egypt, denoted by the hieroglyph . Novo Nordisk is a full member of the European Federation of Pharmaceutical Industries and Associations (EFPIA).[8]

The company was ranked 25th among Fortune's 100 Best Companies to Work For in 2010, and subsequently ranked 72nd in 2014 and 73rd in 2017.[9] [10] [11] In January 2012, Novo Nordisk was named the most sustainable company in the world by the business magazine Corporate Knights, while spin-off company Novozymes was named fourth.[12] It is a leader in the FTSE4Good Index, and the only European company in the top ten.[13] Novo Nordisk is the largest pharmaceutical company in Denmark.[14] Novo Nordisk's market capitalization exceeded the GDP of Denmark's domestic economy in 2023, and it is the highest valued company in Europe.[15]

History

1923

Nordisk Insulinlaboratorium commercialises the production of insulin.[16]

1982–1994

The company established its presence in the United States in 1982.

In 1986, Novo Industri A/S acquired the Ferrosan Group, now named as "Novo Nordisk Pharmatech A/S."

In 1989, Novo Industri A/S (Novo Terapeutisk Laboratorium) and Nordisk Gentofte A/S (Nordisk Insulinlaboratorium) merged to become Novo Nordisk A/S, the world's largest producer of insulin with headquarters in Bagsværd, Copenhagen.[17]

In 1991, Novo Nordisk Engineering (now NNE A/S) demerged after working as in-house consultants at Novo Nordisk for years, to provide standard engineering services (end-to-end engineering) to pharma manufacturing companies.[18]

In 1994, Novo Nordisk's existing information technology units was spun out as NNIT A/S. The company was converted into a wholly owned aktieselskab in 2004[19] In March 2015, NNIT was floated on the Nasdaq Nordic.

2000–2018

Novo's enzymes business, Novozymes A/S, was spun-out in 2000.[20]

Novo acquired Xellia for $700 million in 2013.[21]

The same year, Novo Nordisk USA moved into new headquarters offices in Plainsboro Township, New Jersey, by way of extensively renovating abandoned premises. This action served to consolidate several facilities that the company had previously had in Plainsboro.[22]

In 2015, the company announced it would collaborate with Ablynx, using its nanobody technology to develop at least one new drug candidate.[23]

In January 2018, Reuters reported that Novo had offered to acquire Ablynx for $3.1 billion - having made an unreported offer in mid-December for the company.[24] However, the Ablynx board rejected this offer the same day, explaining that the price undervalued the business.[24] Ultimately Novo lost out to Sanofi who bid $4.8 billion. Later, in the same year, the company announced it would acquire Ziylo for around $800 million.[25]

2020–present

In March 2020, Novo volunteers started testing samples for SARS-CoV-2 with RT-qPCR equipment in the ongoing coronavirus pandemic to increase available test capacity.[26] In June, the business announced it would acquire AstraZeneca's spin-off Corvidia Therapeutics for an initial sum of $725 million (up to a performance-related maximum of $2.1 billion), boosting its presence in cardiovascular diseases.[27] In November, the company announced it would acquire Emisphere Technologies for $1.8 billion, gaining control of a pill-based treatment for diabetes.[27] [28] In December, Novo announced it would acquire Emisphere Technologies for $1.35 billion.[29]

In November 2021, Novo announced it would acquire Dicerna Pharmaceuticals and its RNAi therapeutics, for $3.3 billion ($38.25 per share).[30]

In September 2022, Novo agreed to acquire Forma Therapeutics for $1.1 billion with the intent to expand its sickle cell disease and rare blood disorders portfolio.[31]

By 2022 the popularity of Novo's Wegovy and Ozempic for weight loss was so great as to significantly increase growth of the entire economy of Denmark. In fact, two-thirds of Denmark's overall economic growth in 2022 was attributed to the pharmaceutical industry.[32]

The company's profits increased by 45% year over year in the first half of 2023. Most of the growth occurred from its weight loss drugs, Wegovy and Ozempic, which accounted for 55% of the company's 2023 revenue.

In August 2023, Novo agreed to acquire the Montreal-headquartered pharmaceutical company, Inversago Pharma for $1 billion[33] and Embark Biotech for up to $500 million.[34] In October 2023, the company announced it would acquire ocedurenone—an experimental drug for uncontrolled hypertension and potentially beneficial in treating cardiovascular and kidney diseases—from KBP Biosciences for $1.3 billion.[35]

In November 2023, Novo Nordisk announced investment of €2.1 billion in a French production facility to increase the production capacity and manufacturing of its popular anti-obesity medication.[36]

In February 2024, parent company Novo Holdings A/S agreed to acquire Catalent for $16.5billion. On completion, Novo Nordisk said it would acquire three manufacturing facilities from its parent for $11billion to scale up production to meet the demand of Wegovy and Ozempic.[37] [38]

In March 2024 Novo Nordisk reached $604B market cap and became 12th most valuable company in the world. Company's stock jumped to a record high after early trial data showed positive results for its new experimental weight loss pill Amycretin.[39] The company also announced it would acquire Cardior Pharmaceuticals and its cardiovascular disease portfolio for up to $1.1 billion.[40] In May, the company announced it would acquire Austrian fluid management service business, Single Use Support.[41]

In June 2024 the company announced plans to build a new production plant in Clayton, North Carolina, at a cost of $4.1 billion. It will be the company's fourth in the state of North Carolina and used for production of semaglutide products Ozempic and Wegovy.[42]

Acquisition history

Toxicogenomics

Novo Nordisk is involved in government funded collaborative research projects with other industrial and governmental partners. One example in the area of non-clinical safety assessment is the InnoMed PredTox.[43] [44] The company is expanding its activities in joint research projects within the framework of the Innovative Medicines Initiative of European Federation of Pharmaceutical Industries and Associations and the European Commission.[45]

Diabetic work

Novo Nordisk founded the World Diabetes foundation to save the lives of those affected by diabetes in developing countries and supported a UN (United Nations) resolution to fight diabetes, making diabetes the only other disease along with HIV / AIDS that the UN has a commitment to combat.[46]

Diabetic treatments account for 85% of Novo Nordisk's business. Novo Nordisk works with doctors, nurses, and patients, to develop products for self-managing diabetes conditions. The DAWN (Diabetes Attitudes, Wishes and Needs) 2001 study was a global survey of the psychosocial aspects of living with diabetes. It involved over 5,000 people with diabetes and almost 4,000 care providers.[47] This study was designed to identify barriers to optimal health and quality of life. A follow-up study completed in 2012 involved more than 15,000 people living with, or caring for, those with diabetes. In response to British findings, a National Action Plan (NAP) was developed, with a multidisciplinary steering committee, to support the delivery of individualised person-focused care in the United Kingdom. The NAP seeks to provide a holistic approach to a diabetic treatment for patients and their families.[48]

The i3-diabetes programme is a collaboration between the King's Health Partners, one of only six Academic Health Sciences Centres (AHSCs) in England, and Novo Nordisk. The programme is a five-year collaboration designed to deliver personalised care that will lead to improved outcomes for people living with diabetes, and more efficient and effective ways of caring for people with diabetes.[49] [50]

Diabetic support advocacy

Novo Nordisk have sponsored the International Diabetes Federation's Unite for Diabetes campaign.[51]

In March 2014, Novo Nordisk announced a partnership program entitled ‘Cities Changing Diabetes,’ which entails combating urban diabetes. Partnership includes University College London (UCL) and supported by Steno Diabetes Center, as well as a range of local partners including healthcare professionals, city authorities, urban planners, businesses, academics and community leaders.[52]

A November 2014 newspaper article, suggested that a recent medical research breakthrough at Harvard University (creating insulin-producing cells from embryonic stem cells) could potentially put Novo Nordisk out of business. Dr Alan Moses, the chief medical officer of Novo Nordisk, commented that the biology of diabetes is incredibly complex, but also that Novo Nordisk's mission is to alleviate and cure diabetes. If this new medical advance "...meant the dissolution of Novo Nordisk, that'd be fine."[53]

In September 2023, Novo Nordisk and UNICEF announced a multi-year expansion of their collaboration to address childhood overweight and obesity.[54] [55]

Research and pipeline

Novo Nordisk was researching pulmonary delivery systems for diabetic medications, and in the early stages of research into autoimmune and chronic inflammatory diseases, using technologies such as translational immunology and monoclonal antibodies.[56] In September 2014, the company announced a decision to discontinue all research in inflammatory disorders, including the discontinuation of R&D in anti-IL-20 for the treatment of rheumatoid arthritis.[57]

In September 2018, it was reported that the company would lay off 400 administrative staff, laboratory technicians and scientists, in Denmark and China in order to concentrate research and development efforts on “transformational biological and technological innovation”.[58]

Controversies

In 2010, Novo Nordisk breached the code of conduct for Association of the British Pharmaceutical Industry (ABPI), by failing to provide information about side-effects of Victoza and by promoting Victoza prior to being granted market authorisation.[59]

In 2013, Novo Nordisk had to pay back billion to the Danish tax authorities due to transfer mispricing.[60]

In March 2013, a debate emerged in which scientists questioned whether the incretin class of diabetic medications – the class to which Victoza belongs – had an increased risk of side effects in the pancreas such as pancreatitis and pancreatic cancer. It was concluded that data currently available did not confirm these concerns.[61]

In October 2013, batches of NovoMix 30 FlexPen and Penfill insulin were recalled in some European countries as their analysis had shown that a small percentage of the products in these batches did not meet the specifications for insulin strength.[62]

In September 2017, Novo Nordisk agreed to pay $58.7 million to end a United States Department of Justice probe into the lack of FDA disclosure to doctors about the cancer risk for their diabetic drug, Victoza.[63]

In March 2023, Novo Nordisk was suspended from the ABPI for a period of two years, for engaging in misleading marketing practices that amounted to "bribing health professionals with inducement to prescribe".[64] This is only the eighth time in the last 40 years that ABPI sanctioned a member organization.[65] Consequently, the Royal College of General Practitioners[66] and the Royal College of Physicians[67] ended their corporate partnerships as it would be in breach of their ethical guidance. The Novo Nordisk UK General Manager, Pinder Sahota, chose to resign as President of the ABPI prior to the suspension.

On February 2, 2024 The United States Judicial Panel on Multidistrict Litigation ordered that 55 lawsuits pending in federal courts be consolidated into a multidistrict litigation. The majority of the cases were against Novo Nordisk, but some were brought against Eli Lilly. The Ozempic Lawsuits allege gastroparesis ileus and other injuries caused by GLP-1 RAS. The Case is known as MDL No. 3094 In Re: Glucagon-Like Peptide-1 Receptor Agonists (GLP-1 RAS) Products Liability Litigation. As of August 6, 2024 there were 235 active Ozempic lawsuits.

In 2024 Novo Nordisk drug pricing in the US has been a target of lawmakers, including Senator Bernie Sanders and the Senate committee Health, Education, Labor and Pensions (HELP). The committee investigation found Novo Nordisk's drug Ozempic priced for $969 per month in the US, compared to $155 in Canada and $59 in Germany. Its weight-loss drug Wegovy is priced for $1,349 per month in the US compared to $140 in Germany and $92 in the UK.[68] In July 2024, US President Joe Biden joined Sanders in stating "Novo Nordisk and Eli Lilly must stop ripping off Americans with high high drug prices."[69]

Sponsorships and pitchpeople

Novo Nordisk has sponsored athletes with diabetes, such as Charlie Kimball in auto racing and Team Novo Nordisk in road cycling.[70]

As of the 2010s, Anthony Anderson (star of Black-ish) serves as a pitchman for Novo Nordisk, and featured in the company's television advertisements which aired in the US.[71]

See also

External links

Notes and References

  1. Web site: Annual Report 2023. https://web.archive.org/web/20240131193048/https://www.novonordisk.com/content/dam/nncorp/global/en/investors/irmaterial/annual_report/2024/novo-nordisk-annual-report-2023.pdf. January 31, 2024. Novo Nordisk. February 1, 2024.
  2. Web site: Form 6-K . August 3, 2022 . U.S. Securities and Exchange Commission.
  3. Web site: Who we are. 2021-09-28. www.novonordisk.com.
  4. Web site: Novo Nordisk share and ownership structure. 2023-08-24.
  5. Web site: Novo Nordisk sees slower 2020 growth with US insulin prices pressured. 2020-02-05. CNBC. en. 2020-04-20.
  6. News: Nelson . Eshe . 2023-08-30 . Novo Nordisk Tilts G.D.P. In Denmark . en-US . B1 . The New York Times . 2023-10-05 . 0362-4331.
  7. Web site: Annual Report 2021. https://web.archive.org/web/20220207051815/https://www.novonordisk.com/content/dam/nncorp/global/en/investors/irmaterial/annual_report/2022/novo-nordisk-annual-report-2021.pdf. February 7, 2022. Novo Nordisk. March 13, 2022.
  8. News: The Pharmaceutical Industry in Figures - 2008 Edition. European Federation of Pharmaceutical Industries and Associations (EFPIA). 49. 2008-08-25. dead. https://archive.today/20080916100937/http://www.efpia.eu/content/default.asp?PageID=559&DocID=4883. 2008-09-16.
  9. Web site: 100 Best Companies to Work For 2010: Full list. 2010. Fortune.
  10. Web site: Fortune 100 Best Companies to Work For® 2017 . 2024-06-26 . Great Place To Work® . en-us.
  11. News: Wasserman . Emily . January 16, 2024 . Novo Nordisk Named on the 2014 FORTUNE 100 Best Companies to Work For® List for Sixth Consecutive Year . June 26, 2024 . Fierce Pharma.
  12. Web site: Novo Nordisk Ranked World's Most Sustainable Corporation. read. Bart King Published 8 years ago About a 2 minute. 2012-01-27. Sustainable Brands. en. 2020-04-20.
  13. https://fastercapital.com/content/Corporate-Governance-and-the-FTSE4Good-Index--A-Closer-Look.html
  14. Web site: Stegger . Clara . 2022-12-02 . Første danske virksomhed nogensinde: Novo Nordisk rammer gigantisk beløb . 2023-01-18 . Finans . da.
  15. News: Wienberg . Christian . August 9, 2023 . Novo's Value Surpasses Denmark GDP After Obesity Drug Boost . Bloomberg News.
  16. Web site: Insulin 100 years.
  17. Web site: Our History. www.novonordisk.com. 2019-02-24. 2019-07-08. https://web.archive.org/web/20190708163754/https://www.novonordisk.com/about-novo-nordisk/novo-nordisk-history.html. dead.
  18. Web site: About us - learn more about NNE.
  19. Web site: NNIT History. www.nnit.com. 2019-02-24. 2019-07-08. https://web.archive.org/web/20190708163739/https://www.nnit.com/about-us/Pages/history.aspx. dead.
  20. Web site: Our history . 2023-09-01 . www.novozymes.com.
  21. Web site: Novo A/S acquires Xellia Pharmaceuticals for US$ 700 million. 21 May 2013. www.businesswire.com.
  22. News: Novo Nordisk transforms vacant building into U.S. headquarters . Tom . De Poto . The Star-Ledger . Newark, New Jersey . April 18, 2013.
  23. Web site: Novo Nordisk Joins Ablynx in Up-to-$399M+ Nanobody® Alliance. 25 November 2015.
  24. Web site: Ablynx soars after rejects Novo Nordisk's $3.1 billion biotech bid. 8 January 2018. uk.reuters.com.
  25. Web site: Novo Nordisk Acquires Ziylo in Possible $800 Million-Plus Deal. BioSpace.
  26. Web site: Mølsted . Henning . Dual shift at Novo now testing Corona samples . . da . 28 March 2020 .
  27. Web site: Reuters | Breaking International News & Views. Reuters.
  28. Web site: Novo Nordisk Acquires Emisphere Tech in $1.8 Billion Deal BioSpace.
  29. Web site: Novo Nordisk Completes Acquisition of Emisphere Technologies for $1.35 Billion BioSpace.
  30. Web site: Novo Nordisk to Acquire Dicerna BioSpace.
  31. News: Roy . Mrinalika . Jacobsen . Stine . September 1, 2022 . Novo Nordisk to acquire Forma Therapeutics in $1.1. bln deal . Reuters.
  32. News: Nelson . Eshe . 2023-08-28 . How Ozempic and Weight Loss Drugs Are Reshaping Denmark's Economy . en-US . The New York Times . 2023-12-25 . 0362-4331.
  33. Web site: Constantino . Annika Kim . 2023-08-10 . Novo Nordisk to acquire obesity drug maker Inversago Pharma for up to $1 billion . 2023-08-11 . CNBC . en.
  34. Web site: Novo Bolsters Obesity Pipeline with Potential $500M Embark Biotech Buy .
  35. News: Roush . Ty . 2023-10-16 . Novo Nordisk Buys Hypertension Drug Ocedurenone For $1.3 Billion—Expanding Ozempic Maker's Arsenal . Forbes.
  36. News: Denmark's Novo Nordisk invests €2.1 billion in France . 2023-11-24 . Euronews Business.
  37. News: Gilbert . Daniel . 2024-02-05 . Novo Nordisk buys manufacturing power as it seeks to ramp up Wegovy . The Washington Post.
  38. Web site: Constantino . Annika Kim . 2024-02-05 . Novo Nordisk parent to buy Catalent for $16.5 billion to expand Wegovy supply . CNBC.
  39. Web site: Gilchrist . Karen . 8 March 2024 . Novo Nordisk market cap surpasses Tesla on new obesity pill trial data . 8 March 2024 . CNBC.
  40. Web site: Novartis, Ono Latest to Announce Billion-Dollar M&A Deals .
  41. Web site: Novo Acquires Majority Stake in Austrian Life Sciences Tools Company .
  42. News: Dunleavy . Kevin . June 24, 2024 . Novo Nordisk reveals plan to build mammoth $4.1B plant in North Carolina to help produce Ozempic, Wegovy . June 26, 2024 . Fierce Pharma.
  43. Book: Mattes . William B.. Public Consortium Efforts in Toxicogenomics . 10.1007/978-1-60327-048-9_11 . Essential Concepts in Toxicogenomics. Mendrick . Donna L.. Mattes . William B.. Methods in Molecular Biology. 460 . 221–238 . 2008 . 978-1-58829-638-2 . 18449490 .
  44. Web site: InnoMed PredTox Member Organizations . 2008-08-25 . dead . https://web.archive.org/web/20080926214522/http://www.innomed-predtox.com/consortium/members/ . 2008-09-26 .
  45. Web site: IMI Call Topics 2008. https://web.archive.org/web/20091015122459/http://imi.europa.eu/docs/calls01_en.zip. dead. 2009-10-15. Innovative Medicines Initiative. IMI-GB-018v2-24042008-CallTopics.pdf. European Commission. 2008-08-25.
  46. Web site: World Diabetes Foundation website. 2008-08-25. dead. https://web.archive.org/web/20080919163514/http://www.worlddiabetesfoundation.org/composite-75.htm. 2008-09-19.
  47. Web site: Study Results. DAWN Study. Novo Nordisk. 2016-07-11.
  48. 10.2337/diaclin.24.4.154. The Diabetes Attitudes, Wishes, and Needs (DAWN) Study. Clinical Diabetes. 24. 4. 154–155. 2006. Funnell . M. M.. free.
  49. Web site: i3-diabetes programme. https://web.archive.org/web/20141214234557/http://www.i3diabetes.org.uk/. dead. 2014-12-14. i3diabetes.org.uk.
  50. Web site: How Effective Is The Diabetes Destroyer System?. reviewsmemo.com.
  51. Web site: Novo nordisk in united effort on world diabetes day. worlddiabetesday.org.
  52. Web site: Novo Nordisk launches 'Cities Changing Diabetes' to fight urban diabetes. Novo Nordisk. 2014-04-25.
  53. Roland, Denise (24 November 2014) Insulin pioneer sees end in sight for diabetes – and itself The Daily Telegraph, Retrieved 25 November 2014
  54. Web site: Novo Nordisk y UNICEF amplían su colaboración para ayudar a prevenir el sobrepeso y la obesidad infantil . Novo Nordisk and UNICEF expand collaboration to help prevent childhood overweight and obesity . 25 September 2023 . Europa Press . es.
  55. Web site: Bulik . Beth Snyder . 11 December 2019 . Novo Nordisk joins UNICEF in global and local efforts to end childhood obesity . Fierce Pharma.
  56. Web site: Biopharmaceutical Research Unit," Novo Nordisk Corporation. 29 November 2011. novonordisk.com.
  57. Web site: Novo Nordisk cuts jobs at Seattle research facility. 4 Sep 2014. Lamm. Greg. 27 Oct 2014. bizjournals.com.
  58. News: Novo Nordisk sheds 400 staff as it refocuses R&D efforts . 2 November 2018 . Financial Times . 18 September 2018.
  59. News: Novo Nordisk Limited, Eli Lilly and Company Limited, Grünenthal Ltd and Napp Pharmaceuticals Limited named in advertisements. Prescription Medicines Code of Practice Authority (PMCPA). 2011-02-07.
  60. News: Sådan snød Novo Nordisk Skat for 3,6 milliarder. 2013-02-05.
  61. 10.1111/dom.12230. A prospective, claims-based assessment of the risk of pancreatitis and pancreatic cancer with liraglutide compared to other antidiabetic drugs. Diabetes, Obesity and Metabolism. 16. 3. 273–275. 2014. Funch . D.. Gydesen . H.. Tornøe . K.. Major-Pedersen . A.. Chan . K. A.. 4237552 . 24199745.
  62. Web site: Medical alert: Batches of NovoMix 30 FlexPen and Penfill to be recalled. Diabetes UK. 2014-04-25.
  63. News: McLaughlin . David . Harris . Andrew M. . Jef . Feeley . Novo Nordisk Settles U.S. Suit Over Victoza for $58.65 Million . . 2017-09-06 . 2017-09-06 .
  64. News: Davis . Nicola . 2023-03-16 . Firm behind Wegovy slimming jab suspended from UK trade association . The Guardian.
  65. News: Grover . Natalie . 2023-03-16 . Novo Nordisk suspended from UK lobby group . Reuters.
  66. Web site: RCGP statement on partnership with Novo Nordisk .
  67. News: Das . Shanti . Ungoed-Thomas . Jon . 2023-03-18 . 'Skinny jab' drug firm facing fresh inquiries after 'serious breaches' of industry code . The Guardian.
  68. News: Dunleavy . Kevin . June 17, 2024 . Novo Nordisk CEO Jorgensen agrees to testify before Senate over U.S. pricing of semaglutide products . June 28, 2024 . Fierce Pharma.
  69. Web site: Sanders . President Joe Biden and Sen Bernie . President Biden: Novo Nordisk, Eli Lilly must stop ripping off Americans with high drug prices . 2024-07-11 . USA TODAY . en-US.
  70. Web site: Novo Nordisk and Indy driver Charlie Kimball drive partnership to 100-race mark and counting. Beth. Bulik. Fierce Pharma. 28 September 2016. 21 June 2018.
  71. Web site: Anthony Anderson's Type 2 Diabetes Story Get Real About Diabetes™ . 2024-05-08 . www.getrealaboutdiabetes.com . en.