Target Audience
- Researchers, policymakers, and professionals interested in philanthropic foundations, research funding, and the relationship between business and science.
- Professionals working in life sciences, pharmaceuticals, biotechnology, research and development, and corporate strategy.
- Readers interested in long-term scientific investment, university–industry collaboration, and the development of innovation ecosystems.
Executive Summary
- The Novo Nordisk Foundation is a Danish enterprise foundation whose origins date back to 1924. It has developed a distinctive model for reinvesting wealth generated by the insulin business into scientific research and solutions to societal challenges.
- Through Novo Holdings, the Foundation controls Novo Nordisk and Novonesis, combining long-term corporate ownership with philanthropic activities. In 2025, it awarded DKK 11.8 billion in new grants and philanthropic investments.
- Its three strategic focus areas are Health, Sustainability, and the Life Science Ecosystem. Its activities have expanded from diabetes research to infectious diseases, climate change, sustainable food production, artificial intelligence, and quantum technologies.
- At the same time, the Foundation faces challenges related to its financial dependence on Novo Nordisk, corporate governance, the concentration of research funding, international resource allocation, and the measurement of philanthropic impact.
- The Foundation provides an important example of how corporate wealth can support long-term scientific research and the translation of discoveries into practical applications. Its model offers valuable lessons for universities, research institutions, funding organizations, and businesses worldwide.
1. What Is the Novo Nordisk Foundation?
The Novo Nordisk Foundation is a Danish enterprise foundation that controls Novo Nordisk, one of the world's leading pharmaceutical companies. It is also a major funder of scientific research and initiatives addressing societal challenges, including medicine, life sciences, climate change, food systems, and advanced technologies.
One of the most important aspects of the Foundation is that it operates differently from a conventional corporate philanthropic organization.
It is not simply a mechanism through which a pharmaceutical company donates part of its profits to charitable causes.
Instead, the Foundation owns businesses and reinvests the economic value generated by those businesses into scientific research and solutions to societal challenges, creating a long-term cycle of capital formation and philanthropic investment.
Basic Information
| Item | Description |
|---|---|
| Name | Novo Nordisk Foundation |
| Country | Denmark |
| Origins | June 1, 1924 |
| Formation of the current Foundation | 1989, through the merger of predecessor foundations |
| Organizational structure | Enterprise Foundation |
| Major controlled companies | Novo Nordisk, Novonesis |
| Investment and asset management company | Novo Holdings A/S |
| New grants and philanthropic investments awarded in 2025 | DKK 11.8 billion |
| Number of grants awarded in 2025 | 2,206 |
| Strategic focus areas | Health, Sustainability, Life Science Ecosystem |
These figures are based on the Foundation's official history and its published results for 2025. [1][2][3]
The DKK 11.8 billion figure represents newly awarded grants and philanthropic investments in 2025. It should not be confused with the amount of cash actually disbursed during that year.
Five Key Characteristics of the Novo Nordisk Foundation
Five characteristics are particularly important for understanding the Foundation.
- It emerged from insulin research and manufacturing in the 1920s. The principle of using business profits for scientific and humanitarian purposes has been part of its philosophy since its origins.
- Two competing corporate groups and their foundations merged in 1989. Subsequent restructuring in 1999–2000 established the modern framework for corporate ownership, investment management, and philanthropic activities.
- It combines long-term corporate control with nonprofit objectives. Through Novo Holdings, the Foundation controls Novo Nordisk and Novonesis and uses investment returns to support its philanthropic mission.
- Its activities have expanded significantly beyond diabetes. Its current strategic priorities encompass health, sustainability, and the life science ecosystem, including infectious diseases, climate change, food production, artificial intelligence, and quantum technologies.
- Its growing financial resources and societal influence have created new challenges. These include financial exposure to corporate performance, fairness in research funding, the concentration of institutional influence, and the evaluation of philanthropic outcomes.
A particularly interesting feature is that the Foundation does not limit its support to the discovery stage of scientific research.
It also invests in the research infrastructure, talent, incubation programs, and investment mechanisms needed to translate discoveries into commercial products and practical applications.
2. The Foundation's History: From Insulin to Global Philanthropy
The history of the Novo Nordisk Foundation dates back approximately 100 years to the early development and manufacturing of insulin.
To understand the Foundation's present-day characteristics, it is important to examine how two insulin companies and their respective foundations developed and eventually merged. [1][4]
2.1. 1922–1924: The Commercialization of Insulin and the Birth of a Philanthropic Foundation
The origins of the Novo Nordisk Foundation are closely connected to Nobel Prize-winning physiologist August Krogh, physician Hans Christian Hagedorn (H.C. Hagedorn), and their work in the insulin business.
August Krogh obtained the rights to manufacture insulin from Canada and, together with Hagedorn and others, established Nordisk Insulinlaboratorium in 1923.
At the time, insulin represented a revolutionary treatment for people with diabetes.
However, the founders' ambitions extended beyond manufacturing and selling pharmaceuticals for profit.
They also believed that the profits generated by the insulin business should be used for scientific and humanitarian purposes.
This philosophy led to the adoption of a foundation-owned business model.
The present-day Novo Nordisk Foundation recognizes June 1, 1924, as its founding date. [1]
This was the origin of the principle that continues to define the Foundation: using economic value generated by business activities to advance science and benefit society.
2.2. 1925–1951: The Establishment of a Second Insulin Company, Novo
Following the establishment of Nordisk, competition emerged within Denmark's insulin industry.
Two brothers, Harald Pedersen and Thorvald Pedersen, who had left Nordisk, founded Novo Terapeutisk Laboratorium in 1925.
As a result, Denmark became home to two competing insulin companies: Nordisk and Novo.
Both companies expanded their research and development capabilities and strengthened their business foundations while competing in the insulin market.
In 1951, the Novo Foundation was established to support the long-term survival and development of Novo through a foundation-based ownership structure. [1]
The two foundations formed during this period had somewhat different emphases.
The foundation associated with Nordisk placed considerable importance on directing business profits toward scientific and humanitarian purposes.
The Novo Foundation, meanwhile, placed greater emphasis on protecting the company's continuity and long-term development.
These two traditions later became important elements of the modern Novo Nordisk Foundation.
2.3. 1989: The Merger of Two Companies and Their Foundations
In 1989, the long-standing competitors Novo and Nordisk merged to form Novo Nordisk A/S.
At the same time, their predecessor foundations were combined to establish the present-day Novo Nordisk Foundation.
The merger was a major turning point.
It not only increased the scale of the combined pharmaceutical business but also strengthened its research and development capabilities and expanded the financial resources available for philanthropic activities. [1]
The merger was also important for the Foundation's institutional identity.
It brought together two complementary roles:
- Protecting the long-term stability and development of a business.
- Reinvesting the value created by that business into science and society.
The Foundation's current combination of corporate ownership and philanthropic support can therefore be understood as a direct result of this historical integration.
2.4. 1999–2000: Separating Investment Management from Operating Businesses
In 1999, Novo A/S was established to manage the Foundation's assets and investments.
This company subsequently became Novo Holdings A/S.
In 2000, the pharmaceutical business, Novo Nordisk, and the industrial enzyme business, Novozymes, were separated.
Novozymes later merged with Chr. Hansen in 2024 to form Novonesis. [1][4]
These organizational changes established the structure that broadly defines the group today.
The Foundation serves as the ultimate owner, while an investment holding company and multiple operating businesses perform their respective functions.
2.5. The 2010s–2020s: From Research Grants to Real-World Applications
From the 2010s onward, the Novo Nordisk Foundation significantly expanded the scope of its activities.
While continuing to strengthen its historical support for diabetes research and healthcare, it increasingly invested in the commercialization of research results and the development of new industries.
One representative example is the BioInnovation Institute.
This institution supports the translation of scientific discoveries into startup companies and commercial applications.
The Foundation also invested in major research centers and expanded its activities into infectious diseases, climate change, sustainable food production, and advanced computing technologies. [3][5]
Its role gradually evolved from providing funding to individual researchers and research projects toward building an ecosystem capable of supporting scientific discovery and its practical implementation.
2.6. 2025–2026: Becoming a Global Institution for Science and Societal Challenges
In 2025, the Foundation awarded a record DKK 11.8 billion in new grants and philanthropic investments.
Its activities now extend far beyond traditional medical and life science research.
They include partnerships with the World Health Organization (WHO), initiatives to address antimicrobial resistance, the development of new food ingredients derived from CO₂, and quantum computing projects. [3]
Through these activities, the Novo Nordisk Foundation has evolved from an institution rooted in the insulin business of the 1920s into a global philanthropic organization seeking to address societal challenges through science and technology.
3. The Foundation's Distinctive Organizational and Operating Model
3.1. A Unique Governance Structure: The Foundation Owns the Businesses
The Novo Nordisk Foundation is an Enterprise Foundation, a type of foundation recognized under Danish law.
Unlike many conventional corporate foundations, the Foundation itself is the ultimate owner of the corporate group.
Its assets are not owned by any particular individual or group of shareholders.
The Foundation owns 100% of Novo Holdings A/S, which in turn controls companies including Novo Nordisk and Novonesis. [4][6]
As of the end of 2025, the ownership structure of its major companies was as follows.
| Company | Main Business | Equity Ownership | Voting Rights |
|---|---|---|---|
| Novo Nordisk | Pharmaceuticals | 28.1% | 77.3% |
| Novonesis | Biosolutions | 25.5% | 63.4% |
These ownership figures represent holdings through Novo Holdings. [4][6]
Novo Holdings also has direct investments in more than 180 companies, including businesses in the life sciences sector.
The group's structure can be illustrated as follows:
Novo Nordisk Foundation
(Independent nonprofit enterprise foundation)
|
| 100% ownership
v
Novo Holdings A/S
(Holding and investment company)
|
+--------+--------+
| | |
v v v
Novo Nordisk Novonesis Other Investments
Pharmaceuticals Biosolutions 180+ companies
Corporate earnings and investment returns
|
v
Novo Nordisk Foundation
|
v
Research Grants, Education,
Innovation, and Social Initiatives
|
v
Universities, Research Institutes,
Healthcare Organizations,
Startup Support Organizations,
and International Institutions
This model has four important characteristics.
First, it enables a long-term approach to corporate ownership.
Under its articles of association, the Foundation is committed to maintaining controlling ownership of its principal companies.
This allows it to emphasize sustainable corporate development rather than focusing exclusively on short-term shareholder returns.
Second, it provides multiple sources of financial resources.
In addition to the value of and dividends from Novo Nordisk shares, the group generates investment returns from Novonesis, privately held life science companies, publicly traded equities, bonds, real estate, infrastructure, and other assets.
Third, investment management and philanthropic activities are institutionally separated.
The Foundation is responsible for philanthropic activities, while Novo Holdings manages corporate ownership and investments.
Fourth, the Foundation is subject to regulatory oversight.
It is governed by Danish legislation concerning commercial foundations and falls under the supervision of the Danish Business Authority. [4][6]
This structure is designed to maintain long-term corporate competitiveness while directing the economic value created by businesses toward scientific and societal development.
3.2. The Scale of the Foundation's Financial Resources
The Foundation's philanthropic activities are supported by corporate ownership and large-scale asset management through Novo Holdings.
At the end of 2025, Novo Holdings reported total assets under management of DKK 694 billion.
It also reported DKK 21 billion in total investment income and returns for 2025. [7]
| Financial Indicator | Amount or Result | Period |
|---|---|---|
| Novo Holdings' total assets under management | DKK 694 billion | End of 2025 |
| Novo Holdings' total investment income and returns | DKK 21 billion | 2025 |
| New Foundation grants and philanthropic investments | DKK 11.8 billion | 2025 |
| Number of grants awarded by the Foundation | 2,206 | 2025 |
It is important to note that total assets under management include assets held within the corporate group.
Therefore, the DKK 694 billion figure does not represent an amount that can be freely and immediately spent on philanthropic grants.
3.3. Growth in Grantmaking and Philanthropic Investment
The Foundation's commitments to new grants and philanthropic investments have increased in recent years.
| Year | New Grants and Philanthropic Investments |
|---|---|
| 2023 | DKK 9.1 billion |
| 2024 | DKK 10.1 billion |
| 2025 | DKK 11.8 billion |
These figures are based on the Foundation's published activity reports. [3]
However, differences in reporting scope and accounting treatment should be taken into consideration when comparing years.
These amounts represent newly awarded grants and philanthropic investment commitments. They do not necessarily correspond to accounting expenses or cash disbursements during the same year.
Although the Foundation committed DKK 11.8 billion in 2025, its ability to maintain this level of support over time depends on the performance of its controlled companies, investment returns, existing assets, and long-term capital allocation policies.
3.4. Multiple Approaches to Supporting Scientific Research
Another important characteristic of the Novo Nordisk Foundation is that it does not rely exclusively on conventional competitive research grants.
Its support mechanisms can be divided into five broad categories.
| Support Mechanism | Characteristics |
|---|---|
| Competitive research grants | Researchers submit proposals that are selected through expert review processes. |
| Long-term researcher support | Funding supports research leaders, early-career researchers, and their professional development. |
| Strategic research infrastructure | Long-term investments establish major research centers, facilities, and scientific infrastructure. |
| Strategic partnerships | Joint initiatives are undertaken with universities, governments, WHO, other foundations, and additional partners. |
| Innovation support | Programs help translate research discoveries into startups, commercial products, and practical applications. |
Approximately 79% of the grants awarded in 2025, measured by number, were awarded through open competition.
At the same time, some large strategic projects are designed and initiated directly by the Foundation. [2][3][6]
The Foundation therefore supports both investigator-driven research based on researchers' own ideas and strategically targeted investments addressing major societal challenges.
4. Current Strategic Priorities and Major Projects
The Novo Nordisk Foundation identifies three strategic focus areas in its strategy toward 2030. [5]
- Health
- Sustainability
- Life Science Ecosystem
4.1. Health
Health is the historical foundation of the organization's activities.
Beginning with insulin and diabetes research, the Foundation has expanded its focus to related diseases and broader global health challenges.
Its major priorities include:
- Cardiometabolic diseases, including diabetes, obesity, and cardiovascular disease.
- Infectious diseases, vaccines, and antimicrobial resistance.
- Regenerative medicine and cell therapies.
- Improving access to healthcare and reducing health inequalities.
Its activities go beyond individual research grants.
They include disease prevention, the development of new treatments, and strengthening healthcare systems. [5][8]
4.2. Sustainability
In sustainability, the Foundation seeks to apply knowledge from life sciences and biotechnology to industries beyond pharmaceuticals.
Its main priorities include:
- Climate change mitigation and the green transition.
- Sustainable food production.
- Industrial transformation through microorganisms and biotechnology.
- New resource-circulation technologies, including CO₂ utilization.
The Foundation views life sciences not only as a source of medical technologies but also as an enabling platform for addressing environmental, food-system, and industrial challenges. [3][5]
4.3. Life Science Ecosystem
The third strategic priority focuses on building the infrastructure required to generate scientific discoveries continuously.
Its major themes include:
- Basic research and researcher development.
- Artificial intelligence, data science, and quantum computing.
- University education and research infrastructure.
- Research commercialization and startup development.
Rather than funding only individual research projects, this approach seeks to build a national ecosystem capable of continuously generating scientific discoveries. [5][9]
Artificial intelligence and quantum technologies are particularly important because they can also provide computational infrastructure for life science research.
4.4. Major Projects
Several initiatives illustrate how the Foundation translates its strategic priorities into concrete activities.
| Project | Purpose and Characteristics |
|---|---|
| Steno Diabetes Centers | Strengthen the prevention, treatment, and research infrastructure for diabetes and related diseases. |
| Novo Nordisk Foundation Cellerator | Support the development, manufacturing, and commercialization of cell therapies. |
| NIVI (Vaccines and Immunity) | Develop new and improved vaccines against respiratory infectious diseases. |
| BioInnovation Institute | Support entrepreneurship and the commercialization of scientific research. |
| Danish Centre for AI Innovation | Establish AI research infrastructure using the Gefion supercomputer. |
| QuNorth | Strengthen quantum computing research and industrial applications across the Nordic region. |
These initiatives reflect the Foundation's strategic interests in health, sustainability, research infrastructure, advanced technology, and innovation. [3][8][9]
4.5. Major Initiative 1: Strategic Partnership with WHO
One particularly notable initiative in 2025 was the Foundation's strategic partnership with the World Health Organization (WHO).
The Foundation announced a framework for providing up to DKK 380 million over four years.
The initiative addresses challenges including:
- Cardiometabolic diseases.
- Shortages of healthcare workers.
- Inequalities in healthcare access.
- Antimicrobial resistance.
This partnership illustrates how the Foundation's activities have expanded beyond traditional medical research funding to encompass international healthcare systems and public health challenges. [3]
4.6. Major Initiative 2: The Acetate Consortium
A representative project in sustainable food production is the Acetate Consortium.
In collaboration with the Gates Foundation, this initiative promotes the development of new food ingredients and products using CO₂ as a feedstock.
In 2025, the partners committed DKK 162 million in joint funding to support a two-year extension of the project. [3]
What makes this initiative particularly interesting is its attempt to use microorganisms and biotechnology to create food production systems that differ from conventional approaches.
It demonstrates how life science technologies may contribute to addressing challenges related to climate change and food supply.
4.7. Major Initiative 3: Quantum Technology Infrastructure
The Foundation is also involved in the development of quantum computing infrastructure.
Together with the Danish investment institution EIFO, it committed a combined DKK 600 million to establish QuNorth.
The initiative aims to strengthen research capabilities and industrial competitiveness in quantum technology across the Nordic region. [3]
Meanwhile, the Danish Centre for AI Innovation is developing research infrastructure using the Gefion supercomputer.
A common feature of these initiatives is that they go beyond financing individual research projects.
They seek to create the infrastructure needed for emerging technologies to be used by research institutions and industry.
Taken together, these projects demonstrate that the Novo Nordisk Foundation is no longer simply a traditional medical research funder.
It increasingly acts as a major funding institution connecting science, industry, and international public policy.
5. Challenges Facing the Novo Nordisk Foundation
While the Novo Nordisk Foundation has expanded its financial resources and societal influence, it also faces complex challenges that are not typically associated with conventional research-funding organizations.
The following discussion distinguishes between issues that have already emerged in public reporting or external assessments and longer-term strategic challenges identified through analysis of publicly available information.
5.1. Challenge 1: Novo Nordisk's Competitiveness and the Foundation's Financial Base
One of the Foundation's most important challenges concerns the relationship between its financial resources and the performance of Novo Nordisk.
Although the Foundation has diversified its investment assets, Novo Nordisk remains a core company within the group.
Since the second half of 2024, Novo Nordisk has faced increasingly intense competition in the obesity treatment market, slowing growth in the United States, and declines in its share price.
Competition with Eli Lilly has become a major business challenge.
In 2025, Novo Nordisk underwent a CEO transition and a significant organizational restructuring. [10]
For the Foundation, the implications of declining pharmaceutical competitiveness extend beyond ordinary corporate performance.
| Corporate Risk | Potential Impact on the Foundation |
|---|---|
| Intensifying competition in obesity and diabetes treatments | May affect dividend growth and the value of shareholdings. |
| Pressure on pharmaceutical pricing | May weaken future earnings capacity. |
| Uncertainty in drug development | Makes long-term financial forecasting more difficult. |
| Concentration in specific business areas | May affect the sustainability of plans to expand philanthropic funding. |
However, the Foundation's philanthropic funding is not mechanically tied to Novo Nordisk's profits in any single year.
Diversification and long-term asset management through Novo Holdings provide a financial buffer.
In 2025, Novo Holdings reported an investment portfolio return of 2.3% in its reporting currency, compared with 9.2% excluding foreign exchange movements. [7]
This difference illustrates that currency fluctuations are also an important factor in the management of the group's investment resources.
The key question is whether the Foundation can reduce its financial concentration risk while maintaining its commitment to long-term controlling ownership of Novo Nordisk.
5.2. Challenge 2: Corporate Governance and the Concentration of Influence
Corporate governance became a particularly visible issue in 2025.
In May 2025, Novo Nordisk announced a change in its chief executive officer.
The company's announcement explained that the Foundation had sought an accelerated CEO transition and greater involvement in the company's board of directors. [10]
Later, in November 2025, substantial changes were made to the board.
Lars Rebien Sørensen, the Chair of the Novo Nordisk Foundation, became Chair of Novo Nordisk.
Reuters reported that some investors raised concerns about minority shareholder rights and corporate governance.
The Foundation, meanwhile, explained its actions as measures intended to protect the company's long-term competitiveness. [11]
This situation illustrates an important governance dilemma.
On one hand, active involvement by the Foundation may help protect a company's long-term development.
On the other hand, if the Foundation and the operating company's management become too closely integrated, independent oversight and the balancing of minority shareholder interests may become more difficult.
The central question is how far the Foundation should intervene in the management of its controlled companies, and which decisions should remain the responsibility of executives and independent directors.
This is a governance challenge that may arise in other enterprise foundation models as well.
5.3. Challenge 3: The Influence of Large-Scale Research Funding on Universities
The Foundation's substantial research funding has contributed significantly to the development of Denmark's scientific environment.
At the same time, the concentration of research funding raises important questions.
A 2025 assessment of Denmark's research funding system highlighted the growing influence of large research-center investments by private foundations, including the Novo Nordisk Foundation, on priorities within basic research.
The Danish encyclopedia Lex has also discussed criticism that large grants may affect university autonomy, operating budgets, and the allocation of academic personnel.
However, some universities do not consider these criticisms justified. [12]
The fundamental concern is not simply the size of individual grants.
Rather, substantial resources and talent may become concentrated in research areas prioritized by the Foundation, potentially affecting the balance between scientific disciplines.
Large research centers also raise questions about who will finance their ongoing operating costs and staffing needs after the Foundation's initial funding period ends.
The key challenge is how to balance large-scale research investment with university autonomy, scientific diversity, and long-term operating responsibilities.
5.4. Challenge 4: International Expansion and Fairness in Resource Allocation
Approximately 79% of the Foundation's grants and philanthropic investments awarded in 2025 were allocated to activities in Denmark. [2]
At the same time, the Foundation is expanding international partnerships, including cooperation with WHO, activities in India and Africa, and multinational research collaborations.
These developments are not inherently contradictory.
However, they create important strategic choices concerning future resource allocation.
| Funding Approach | Advantages | Challenges |
|---|---|---|
| Investment concentrated in Denmark | Enables the development of world-class research centers through concentrated investment. | Creates geographical concentration of funding. |
| Expansion of international collaborative research | Broadens the Foundation's ability to address global challenges. | Increases the complexity of project management and impact evaluation. |
| Direct support for low- and middle-income countries | Can improve healthcare access and reduce health inequalities. | Requires attention to local institutions, implementation capacity, and sustainability. |
The central question is how the Foundation should balance its role in strengthening Denmark's research infrastructure with its ambition to address global health and environmental challenges.
5.5. Challenge 5: Measuring the Social Impact of Large-Scale Philanthropic Investment
Another challenge concerns the measurement of outcomes as the Foundation's activities expand.
This is a longer-term challenge identified through analysis of the Foundation's growing portfolio.
For example, the success of a newly established research center or quantum computing facility cannot be adequately measured by investment amounts or the number of research projects alone.
It is increasingly important to evaluate questions such as:
- Has medical research contributed to new treatments or measurable improvements in patient health?
- Have decarbonization and food technologies been implemented at a commercial scale?
- Have investments in AI and quantum technologies created sustainable research and industrial capabilities?
- Can research programs and commercial initiatives continue independently after the Foundation's financial support ends?
These questions do not imply that the Foundation has failed to demonstrate results in all these areas.
Rather, they represent common challenges in evaluating the outcomes of large-scale, long-term philanthropic investment.
5.6. Summary of the Five Challenges
| Challenge | Nature of the Issue | Key Considerations |
|---|---|---|
| Dependence on corporate performance | An existing business and financial risk | Diversification of financial resources and long-term funding capacity |
| Involvement in corporate governance | Became particularly visible in 2025 | Responsibilities of controlling shareholders and management independence |
| Concentration of research funding | Raised in external assessments and criticism | University autonomy and diversity of research |
| Domestic versus international allocation | A strategic choice | Balancing national research infrastructure with global public benefit |
| Measurement of philanthropic outcomes | A longer-term challenge | Implementation, societal impact, and sustainability |
A common theme across these challenges is that, as the Foundation's financial resources and influence grow, it becomes increasingly important not only to provide funding but also to demonstrate accountability for its decisions and their societal consequences.
6. Lessons from the Novo Nordisk Foundation for Japan and Beyond
The Novo Nordisk Foundation cannot be fully understood simply as a charitable organization.
Its defining characteristic is the long-term integration of corporate ownership, research funding, scientific infrastructure, industrial investment, and the practical application of research discoveries.
This model offers lessons for research funding organizations, universities, pharmaceutical companies, and life science businesses in Japan and other countries.
6.1. Using Long-Term Capital to Advance Science and Technology
Research and development can take more than a decade to produce meaningful results.
Rather than demanding short-term research outcomes, it is important to establish mechanisms capable of supporting researchers, research institutions, and scientific infrastructure over extended periods.
The Novo Nordisk Foundation uses financial resources accumulated through corporate ownership and investment management to make such long-term commitments possible.
6.2. Investing in Entire Innovation Ecosystems, Not Just Research Grants
Research funding alone is often insufficient to ensure that scientific discoveries benefit society.
Support for universities can be combined with investments in talent development, scientific facilities, research centers, entrepreneurship, and collaboration with industry.
An integrated approach can help translate scientific findings into practical applications.
The BioInnovation Institute and the Foundation's investments in advanced computing infrastructure illustrate this philosophy.
6.3. Expanding into Adjacent Fields While Building on Existing Strengths
The Foundation began with a historical strength in insulin and diabetes research.
Over time, its activities expanded into cardiometabolic diseases, infectious diseases, regenerative medicine, industrial biotechnology, and artificial intelligence.
This represents a model of expanding into new fields while maintaining a coherent scientific foundation.
Developing new activities from established areas of expertise can also provide useful lessons for universities, research institutions, and businesses in Japan.
6.4. Recognizing the Need for Governance of Funding Institutions
Organizations providing substantial research funding can influence the direction of scientific research, the allocation of academic resources, and the development of emerging markets and industries.
As a result, the governance of funding institutions becomes increasingly important.
Key considerations include:
- Transparency in research grant evaluation.
- Appropriate management of conflicts of interest.
- Respect for the independence of researchers and research institutions.
- Public disclosure of research results and philanthropic outcomes.
These issues become more important as the size and influence of a funding institution increase.
7. Overall Assessment and Future Outlook
Over approximately 100 years, the Novo Nordisk Foundation has transformed a mechanism for supporting scientific and humanitarian purposes through the insulin business into a global model for research funding and philanthropic investment.
Three factors have been particularly important to its development.
7.1. Continuous Capital Formation
The Foundation has maintained long-term ownership of competitive operating businesses while expanding its investment assets.
This has created a financial foundation capable of supporting large-scale, long-term research and philanthropic investments without excessive dependence on short-term fundraising.
7.2. A Consistent Institutional Purpose
The Foundation has maintained a broad commitment to advancing medicine, science, and societal well-being over an extended period.
That purpose is rooted in the historical philosophy of its original insulin business.
At the same time, the specific fields it supports have evolved in response to changes in society and advances in science and technology.
7.3. Integrated Support from Research to Implementation
The Foundation has moved beyond individual research grants to invest in universities, healthcare infrastructure, advanced technologies, and commercialization mechanisms.
Its activities increasingly consider not only how scientific discoveries are made but also how they can ultimately be translated into practical use.
7.4. The Sources of Success Also Create New Challenges
However, the Foundation's current challenges arise partly from the same factors that contributed to its success.
Strong ownership control enables long-term corporate management but can also create governance tensions with minority shareholders.
Large-scale research funding can strengthen scientific institutions but may also lead to the concentration of research resources and academic talent.
As the Foundation's philanthropic ambitions expand, questions about which societal challenges should receive priority, who should make those decisions, and how results should be evaluated become increasingly important.
7.5. The Most Important Question for the Future
Based on this analysis, the central question for the Foundation's future is:
Can an institution that built its financial strength on a highly successful company such as Novo Nordisk sustain its role as an independent global supporter of science and public benefit without becoming excessively dependent on the growth of that company?
The corporate governance developments of 2025 demonstrate that this is not merely a theoretical issue.
It is already influencing real-world decisions concerning corporate ownership, management, and institutional responsibilities.
8. Conclusion
The Novo Nordisk Foundation represents an important institutional model for creating economic wealth through business activities and systematically reinvesting that wealth in the science, technology, industries, and society of the future.
What began with the insulin business approximately a century ago has developed into a global organization supporting scientific research and initiatives addressing major societal challenges.
Today, its activities extend beyond medicine and life sciences to include climate change, food production, artificial intelligence, quantum technologies, and the infrastructure required for future scientific progress.
At the same time, the Foundation faces questions about how an influential nonprofit institution with substantial financial resources should maintain public accountability, independence, and transparency.
For these reasons, the Novo Nordisk Foundation is worth studying not only as an example of long-term scientific investment and innovation ecosystem development but also as a case study in how businesses and philanthropic foundations can establish a sustainable relationship with one another.
Its future development will offer important insights into the opportunities and challenges of foundation-owned enterprises and their role in supporting science and society.
Research reference date: November 4, 2026. The financial and grantmaking analysis is based primarily on finalized 2025 reporting. Full-year 2026 figures are not included.
References
[1] Novo Nordisk Foundation, “History,” Novo Nordisk Foundation, official website. https://novonordiskfonden.dk/en/who-we-are/history/
[2] Novo Nordisk Foundation, “Annual Report 2025,” Novo Nordisk Foundation, 2026. https://novonordiskfonden.dk/en/publications/annual-report-2025/
[3] Novo Nordisk Foundation, “DKK 11.8 Billion (€1.6 Billion) Awarded to Benefit People and the Planet in 2025,” Novo Nordisk Foundation, 2026. https://novonordiskfonden.dk/en/news/dkk-11-8-billion-e1-6-billion-awarded-to-benefit-people-and-the-planet-in-2025/
[4] Novo Nordisk Foundation, “History,” Novo Nordisk Foundation, official website. https://novonordiskfonden.dk/en/who-we-are/history/
[5] Novo Nordisk Foundation, “Strategy and Goals,” Novo Nordisk Foundation, official website. https://novonordiskfonden.dk/en/strategy-goals/
[6] Novo Nordisk Foundation, “Annual Report 2025,” Novo Nordisk Foundation, 2026. https://novonordiskfonden.dk/en/publications/annual-report-2025/
[7] Novo Holdings, “Annual Results 2025,” Novo Holdings, 2026. https://novoholdings.com/annual-results
[8] Novo Nordisk Foundation, “Strategy and Goals,” Novo Nordisk Foundation, official website. https://novonordiskfonden.dk/en/strategy-goals/
[9] Novo Nordisk Foundation, “DKK 11.8 Billion (€1.6 Billion) Awarded to Benefit People and the Planet in 2025,” Novo Nordisk Foundation, 2026. https://novonordiskfonden.dk/en/news/dkk-11-8-billion-e1-6-billion-awarded-to-benefit-people-and-the-planet-in-2025/
[10] Novo Nordisk Foundation, “Annual Report 2025,” Novo Nordisk Foundation, 2026. https://novonordiskfonden.dk/en/publications/annual-report-2025/
[11] Reuters, “Novo Nordisk shareholders approve new board chair,” Reuters, 2025. https://www.investing.com/news/stock-market-news/novo-nordisk-shareholders-approve-new-board-chair-4358977
[12] Lex, “Novo Nordisk Fonden,” Lex – Danmarks Nationalleksikon, official website. https://lex.dk/Novo_Nordisk_Fonden