Novo Holdings A/S

Novo Holdings A/S (previously Novo A/S)[1] is the Novo Nordisk Foundation's wholly owned holding company for Novo Nordisk A/S and Novozymes A/S. Novo Holdings A/S was established in 1999 and manages the Novo Nordisk Foundation’s assets, which in 2019 was worth DKK 411 billion[2] Danish Kroner (approximately US$60 billion).

Novo Holdings A/S
TypePrivate limited company
IndustryLife Sciences
Asset management
Founded1999
Headquarters
Hellerup
,
Denmark
Key people
Kasim Kutay(CEO)
Lars Rebien Sørensen(Chairman)
ServicesInvestments in Life Science
Total assetsDKK 411 billion (2019)
Approx. $60 billion (2019)
SubsidiariesNovo Nordisk A/S
Novozymes A/S
Websitewww.novoholdings.dk

A key task of Novo Holdings A/S is to act as a stable basis for the commercial activities of Novo Nordisk A/S and Novozymes A/S. Novo Holdings A/S also invests in both financial assets and in companies with application-oriented research in the life sciences. Novo Holdings A/S aims to manage the Novo Nordisk Foundation’s assets to achieve a return that the Foundation can award as grants for scientific research and humanitarian and social purposes.

Eivind Kolding succeeded Henrik Gürtler as CEO on 1 May 2014.[3] Eivind Kolding left Novo Holdings A/S in March 2016 and Kasim Kutay took over as CEO for the organisation.[4]

Investments areas

Novo Holdings A/S operates in four main investment areas.[5]

Novo Seeds aims to support especially promising biotechnology companies with great commercial potential at an early stage of their development. Novo Seeds also awards research scholarships called pre-seed grants for promising research, projects and ideas in the early stages. Novo Seeds was established in 2007.

Novo Ventures was created in 2000. Since inception, Novo Ventures has invested more than DKK 10 billion in 138 innovative companies and has divested 44 of these companies at a profit.

Principal investments invests solely in mature and well-established life science companies with a leading market position and attractive growth potential.

Financial investments invests in equity, bond markets and alternative assets such as private equity, private debt and real estate, which thereby provide a source of diversification and access to liquidity for Novo Holdings and the Novo Nordisk Foundation.

Novo Group

The Novo Group comprises Novo Holdings A/S, Novo Nordisk A/S and Novozymes A/S. Novo Holdings A/S owns more than 25% of the ordinary share capital of Novo Nordisk A/S and controls more than 70% of the votes through its ownership of all the preferred (A) shares, which are not traded.

The Group's main purpose is to manage the financial assets of the Novo Nordisk Foundation to ensure an adequate financial return to cover the Foundation's investments and grants for scientific, humanitarian and social purposes and projects in the Nordic countries and the rest of the world. The Group achieves this by investing in life science companies in Europe and North America. The Novo Group also invests in a portfolio of financial assets.[6]

Investments

In addition to the Novo Group, Novo Holdings A/S owns major stakes in several Danish companies, including the Xellia Group, Sonion and Chr. Hansen Holdings A/S. By the beginning of 2018 Novo Holdings A/S had a portfolio of 85 listed and unlisted Life Science companies in Europe and North America.

Novo Holdings A/S invests mainly in companies that develop, manufacture or sell medicine, new treatment methods or medical or health-related equipment.[7]

At the end of 2017, Novo Holdings A/S had allocated nearly DKK 38 billion for investment in portfolios in Large Investments, Ventures and Seeds of DKK 31.5 billion, DKK 5.9 billion and DKK 291 million, respectively.[8]

  • In May 2013, Novo Holdings acquired all shares in the pharmaceutical company Xellia.[9]
  • In July 2014, Novo Holdings acquired all shares in Sonion, a manufacturer of components for the hearing aid industry.[10]
  • In Marts 2017, Novo Holdings acquired 20 percent of the shares in the UK listed company ConvaTec Group Plc with Kasim Kutay, CEO of Novo Holdings A/S, joining the Board of Directors.[11]

Senior management

In 2014, Henrik Gürtler stepped down as CEO after serving in the position since the company was established in 1999. He was replaced by Eivind Kolding, previously the CEO of Danske Bank.[12] On 29 February 2016, Eivind Kolding was dismissed as CEO of Novo A/S after 2 years in the post. He was temporarily replaced until June 2016 by Sten Scheibye, Chair of the Board of Directors. His successor as CEO of Novo Holdings A/S is Kasim Kutay,[13] a British citizen who previously worked for investment banks Morgan Stanley and Moelis & Company.

  • Henrik Gürtler, 1999 – 2014
  • Eivind Kolding, 2014 – 2016
  • Sten Scheibye (Chairman and interim CEO), March 2016 – June 2018
  • Lars Rebien Sørensen (Chairman), July 2018 - current
  • Kasim Kutay (CEO), 2016 – current

Board of Directors

The Board of Directors of Novo Holdings A/S comprises six members (as of December 2018):[14][15][16]

  • Lars Rebien Sørensen (Chairman)
  • Steen Riisgaard (Vice Chairman)
  • Viviane Monges
  • Francis Michael Cyprian Cuss
  • Jeppe Fonager Christiansen
  • Jean-Luc Butel

REPAIR Impact Fund

In February 2018, Novo Holdings announces the establishment of an impact fund commissioned by the Novo Nordisk Foundation with a total initial budget of US$165 million to invest in companies involved in discovering and early-stage development of therapies to combat antimicrobial resistance.[17]

According to CEO Kasim Kutay, Novo Holdings are looking to increase this type of investments in global healthcare challenges: “We are looking to increase investments of this type in the coming years, and we are excited about our potential to make a significant difference in improving global healthcare”.[18]

REPAIR is an acronym for: Replenishing and Enabling the Pipeline for Anti-Infective Resistance.[19]

References
  1. http://www.novoholdings.dk/news-archive?field_date%5Bmin%5D=1483228801&field_date%5Bmax%5D=1514764799#1097
  2. CVR.dk - Annual Report 2019 Novo Holdings A/S: https://datacvr.virk.dk/data/offentliggorelse?dl_ref=amNsb3VkczovLzAzLzA1LzE1L2Y4L2RmLzE1NjMtNDIyNy05NWRkLTVmNmExNmEwNGI2MA
  3. "Eivind Kolding bliver direktør for Novo A/S" (in Danish). Berlingske. Retrieved 2014-07-17.
  4. http://borsen.dk/nyheder/virksomheder/artikel/1/326688/novos_pengetank_faar_ny_topchef.html
  5. https://www.novoholdings.dk/investments/
  6. http://novonordiskfonden.dk/en/content/ownership-and-subsidiaries
  7. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=980152
  8. https://2016.novo.dk/online/
  9. "Novo køber norsk biotekselskab for fire milliarder kroner" (in Danish). Ingeniøren. Retrieved 2014-07-17.
  10. "Novo betaler op mod 4 milliarder kroner for Sonion" (in Danish). Berlingske. Retrieved 2014-07-17.
  11. http://www.pharmatimes.com/news/novo_to_buy_20_stake_in_uks_convatec_1190295
  12. https://www.business.dk/ledelse/eivind-kolding-bliver-direktoer-for-novo-as
  13. https://www.fiercebiotech.com/biotech/after-ousting-former-ceo-novo-a-s-puts-kutay-charge-57b-investment-vehicle
  14. https://medwatch.dk/secure/Top_picks_in_english/article9923353.ece
  15. https://www.novoholdings.dk/about/leadership/
  16. Central Business Register, Denmark: https://datacvr.virk.dk/data/visenhed?enhedstype=virksomhed&id=24257630&soeg=24257630&language=da
  17. https://www.reuters.com/article/pharmaceuticals-antibiotics-novo/novo-holdings-launches-165-mln-superbug-drug-venture-fund-idUSL8N1QI2M7
  18. https://european-biotechnology.com/up-to-date/latest-news/news/novo-holdings-launches-eur135m-fund-to-combat-antimicrobial-resistance.html
  19. https://www.repair-impact-fund.com/
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