Novo Nordisk
During a US congressional hearing, CEO Jorgensen said his company was willing to negotiate prices for its GLP-1 medicines with pharmacy benefit managers (PBMs). But that would depend on lawmakers ensuring access to the drugs.
Origins Novo Nordisk
The history of novo nordisk is a story of dedication and perseverance. The company has grown from a small local business to a global leader in healthcare, providing products and solutions that help people around the world manage their chronic diseases. This growth has been driven by a strong commitment to innovation and a focus on helping people live healthier lives.
The roots of novo nordisk go back to 1923, when the company was established in Denmark. The company was initially named Nordisk Insulinlaboratorium and focused on producing insulin to treat diabetes, which was a life-threatening condition at the time. The discovery of insulin was a monumental advancement in the field of medicine, and it helped save countless lives.
In the early 1970s, Novo approached their bitter rival Nordisk about a merger. At the time, both companies were struggling, but Novo had more potential for growth since it had a larger market share than Nordisk. The Pedersen brothers – chemist Thorvald and pharmacist Harald – did not immediately agree to the merger. However, they agreed to form a foundation that would award grants for scientific research.
During the following years, Novo Nordisk expanded their product portfolio and became a leading player in the field of diabetes treatment. The company also introduced modern insulin formulations to provide more precise blood sugar control and improve patients’ quality of life. The company has continued to innovate, with new treatments for other chronic diseases such as hemophilia and growth disorders.
Novo Nordisk has also invested heavily in research and development, which has resulted in numerous breakthroughs in the field of medicine. The company has also made significant progress in reducing its environmental impact and promoting ethical business practices.
Novo Nordisk has an extensive global presence, with operations in more than 170 countries. The company has a long history of working with communities and is dedicated to improving healthcare worldwide. Novo Nordisk is a leader in the development of new medications and devices to treat chronic diseases, including diabetes, obesity, and hemophilia. The company is also a pioneer in the development of prefilled, disposable insulin syringes, which are convenient for people with diabetes and other chronic conditions.
Products Novo Nordisk
The unique corporate entity that is Novo Nordisk has its origins in 1922 when researchers in Canada discovered insulin, a drug that radically improved life expectancy among diabetes sufferers. The discovery was followed two years later by the establishment of Denmark’s first commercial insulin production at the Nordisk Insulinlaboratorium in Bagsvaerd. It soon became clear that the company would be a major player in the global pharmaceutical market. The company’s history is characterised by long periods of intense competition, as competitors fish for the same talent pool and poach each other’s employees. This ended in 1989 when the competing foundations behind Nordisk Insulaboratorium and Novo Terapeutisk Laboratorium merged, creating Novo Nordisk A/S.
The Novo Nordisk group develops, manufactures and markets pharmaceutical products for the treatment of diabetes and obesity, as well as rare diseases and other emerging therapy areas. The company’s product portfolio includes pharmaceuticals, vaccines and devices. The company is also active in the field of hemophilia, growth hormones and hormone replacement therapy.
Novo Nordisk’s top product, Ozempic – a glucagon-like peptide 1 (GLP-1) product – generated some 96 billion kroner in sales in 2023. Another GLP-1 product, Victoza, was the company’s third best-selling drug that year.
In 2024, the company was facing legal action over side effects associated with its medications containing semaglutide. The drug, which is marketed as Ozempic and Wegovy for treating diabetes and weight loss, was linked to gastroparesis and suicidal thoughts in some patients. In February, the U.S. Judicial Panel on Multidistrict Litigation ordered all pending lawsuits against the company over the medication to be centralized in the U.S. District Court for the Eastern District of Pennsylvania.
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Markets Novo Nordisk
The popular weight loss drugs Ozempic and Wegovy have boosted the fortunes of their maker, Novo Nordisk. The Danish drugmaker is now bigger than the country, with a market capitalization that’s more than double that of Tesla (TSLA). Its investors are fervently hoping it can deliver on its promise to upend the business models of food and traditional weight loss companies.
The company’s rise has transformed the town of Kalundborg. With corporate tax revenue soaring, the local government has cut taxes six times in a decade and invested in initiatives including a new harbor park. Many residents also work at Novo, which offers internships and hosts factory visits. Novo and the foundation that controls three-quarters of its voting shares also help fund a train station, a biotech college, and a research lab in the town.
But the company’s clout can also pose a threat to democracy, experts warn. As Novo’s power grows, it becomes harder for elected officials and civil servants to challenge conditions that benefit the company or its foundation, said Ellersgaard. This can lead to delicate questions going unasked, he says.
Shares in Novo Nordisk rose more than 8% Thursday, pushing its market capitalization to $609 billion—about $40 billion more than that of electric car maker Tesla (TSLA). Investors were enticed by early-stage trial results showing that people taking the company’s experimental pill to boost semaglutide, which mimics a naturally occurring hormone that suppresses appetite, lost 13.1% of their bodyweight.
But some analysts are skeptical about Novo’s ability to sustain its growth trajectory. Its sales growth in the third quarter was below estimates and it narrowed its full-year sales forecast. And competition for its weight loss drugs is heating up with US drugmaker Eli Lilly announcing a version of its own blockbuster medication, lorcaserin, this month. It also faces competition from a slew of start-ups developing treatments that target the same molecule as semaglutide, which Novo’s products mimic. This may cause the company’s market share to decline over time, analysts say.
Corporate Governance Novo Nordisk
The Company has a strong commitment to the highest standards of corporate governance. The Novo Nordisk Way, the Group’s vision and set of essentials describing how we work, is central to this. It describes how we are different and what our employees must do to create value. It also sets clear expectations for the Group on how we conduct business ethically.
The Group’s financial resources are sufficient to meet current operating requirements for at least the next 12 months. The Group’s most significant sources of cash flow from operating activities are sales of diabetes and obesity care products, as well as biopharmaceutical products. Other factors that have a material impact on realized cash flow from operating activities include pricing, volume, costs and exchange rates.
As outlined in the Group’s Articles of Association, the Foundation, acting through Novo A/S, has a veto right over any change in control of the Company, including mergers, acquisitions or corporate restructurings involving the Company (or its subsidiaries). The veto power applies only to A shares and does not apply to treasury shares, nor does it extend to non-A shares that are convertible into A shares.
No member of the Board of Directors or Executive Management is a relative of any other director or employee of the Group and none has an agreement, arrangement or understanding between himself/herself and a customer, supplier or any other person with respect to any form of share-based payment to which he/she is otherwise entitled.
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Novo Nordisk maintains a flexible workforce policy that results in low staff turnover, high levels of engagement and ease in recruiting new employees. This enables us to quickly adjust capacity for varying market conditions, e.g. during recent years when we reduced our global workforce by around 2% as a result of declining demand and cost savings actions.
Novo Nordisk has a wide range of patents covering its current and future product portfolio, as well as its research and development processes. These patents provide a strong competitive basis and secure the Group’s long-term profitability and enable it to invest in further innovation, maintain leadership in its markets and sustain strong growth in the future.
