The Novo Nordisk Foundation is a Danish enterprise foundation established in 1989. It supports research and other activities primarily in health, sustainability, and life sciences.
The foundation is the controlling shareholder of Novo and Novonesis (formerly Novozymes) through its investment arm, Novo Holdings. It holds a minority of the share capital in Novo and Novonesis but controls a majority of the voting rights. Income derived from these holdings constitutes the foundation's primary source of funding.
As of year-end 2025, Novo Holdings managed assets valued at DKK 694 billion (approximately US$109 billion) on behalf of the foundation, ranking it among the world's largest charitable foundations by assets.
History
1920s: Discovery of insulin The origins of the Novo Nordisk Foundation are linked to the early development of insulin production in Denmark in the 1920s. In 1922, Danish professor August Krogh obtained the rights to produce insulin in Scandinavia following its discovery in Canada. In 1923, Nordisk Insulinlaboratorium was established, and a foundation ownership model was adopted in December 1926 where the profits from Nordisk Insulinlaboratorium's sales were directed to the Nordisk Insulin Foundation.
Mid-20th century to today During the mid-20th century, the Danish insulin industry developed through two principal companies: Nordisk Insulinlaboratorium and Novo Terapeutisk Laboratorium. The two companies operated separately for several decades before merging in 1989 to form Novo Nordisk. The foundation structures associated with the companies were subsequently consolidated, forming the basis of the present Novo Nordisk Foundation.
In the decades following the merger, the foundation evolved from primarily holding industrial ownership stakes to becoming one of the world's largest philanthropic foundations by assets. Its financial resources are derived primarily from its controlling ownership stake in Novo through Novo Holdings.
During the 2010s and 2020s, the foundation expanded its grant activities in scale and scope. In addition to funding biomedical and clinical research, it increased its support for initiatives related to sustainability, environmental research, and life science innovation.“Novo Nordisk Foundation to place more grants outside Denmark,” Reuters, 18 March 2024
https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-foundation-place-more-grants-outside-denmark-2024-03-18/
Legal structure The Novo Nordisk Foundation is an established enterprise foundation. It is a self-governing entity with no owners, focusing on long-term ownership of the Novo Group (Novo and Novozymes/Novonesis) while combining business and philanthropy with scientific, humanitarian and social purposes. The Novo Nordisk Foundation's investment activities are managed by its subsidiary Novo Holdings whose sole purpose is to invest the foundation's wealth and ensure financial returns. Novo Holdings is also the holding company for the foundation's ownership of the Novo Group.
Ownership structure The Novo Nordisk Foundation is obligated to maintain its controlling ownership in the Novo Group's two largest companies: Novo and Novozymes/Novonesis. The foundation owns class A and B-shares in Novo corresponding to 28.1 percent of the total equity and 77.3 percent of the total voting rights. The foundation owns class A and B-shares in Novozymes/Novonesis corresponding to approximately 25.5 percent of the total equity and approximately 63.4 percent of the total voting rights.
The class A-shares in both companies (Novo and Novozymes/Novonesis) are unlisted and consequently cannot be publicly traded. The voting weight of the A-shares are 10 times those of B-shares in both companies.
Endowment The Novo Nordisk Foundation is the primary owner of Novo and Novozymes/Novonesis through the foundation's subsidiary company Novo Holdings. Aside from Novo and Novozymes/Novonesis, the foundation is also a major shareholder in other companies and assets. The foundation's financial endowment is maintained by dividends and returns on these investments.
Novo Holdings manages the foundation's assets and serves as controlling shareholder of Novo, in which it holds 28.1% of shares and 77.3% of votes, and of Novonesis (formerly Novozymes), in which it holds 25.5% of shares and 63.4% of votes. Together, these controlling stakes make up the Novo Group on the balance sheet of the Novo Nordisk Foundation and Novo Holdings.
Through Novo Holdings, the foundation is a shareholder in approximately 170 other companies as of year-end 2025.
The foundation's financial wealth is reported annually as total assets under management by Novo Holdings. AUM is calculated at market value and includes the foundation's controlling stakes in the Novo Group companies, valued using the quoted B-share price at close on 31 December of the respective year, together with the Investment Assets Portfolio managed by Novo Holdings. The Foundation references this calculation in annual report.
Composition
As of year-end 2025, Novo Holdings reported total assets under management (AUM) of DKK 694 billion (approximately €93 billion or US$109 billion).
The portfolio is composed of two main categories:
+ Composition of Total Assets under Management, year-end 2025 Component DKK USD (approx.) Share of AUM Novo Group (controlling stakes) DKK 456 bn ~ $72 bn 66% → Novo (28.1% of shares; 77.3% of votes) DKK 407 bn ~ $64 bn 59% → Novonesis (25.5% of shares; 63.4% of votes) DKK 49 bn ~ $8 bn 7% Investment Assets Portfolio DKK 238 bn ~ $37 bn 34% → Life Science Investments DKK 124 bn ~ $19 bn 18% → Capital Investments DKK 114 bn ~ $18 bn 16% Total Assets under Management DKK 694 bn $109 bn 100%
The Investment Assets Portfolio comprises approximately 170 portfolio companies and is split between Life Science Investments (managed through Seed, Venture, Asia, Planetary Health, Growth and Principal Investments teams) and Capital Investments (covering public and private equities, bonds, real estate, infrastructure assets and private equity).
Historical trajectory
The Foundation's Total Assets under Management have fluctuated substantially in recent years, reflecting movements in the Investment Assets Portfolio and in the share prices of Novo and Novonesis.
+ Total Assets under Management (billions), year-end 2021–2025 Year-end Novo Group (DKK bn.) Investment Assets (DKK bn.) Total AUM (DKK bn.) Total AUM (USD bn, approx.) Novo Group share 2021 DKK 515 DKK 182 DKK 697 ~ $106 74% 2022 DKK 625 DKK 180 DKK 805 ~ $115 78% 2023 DKK 913 DKK 201 DKK 1,114 ~ $165 82% 2024 DKK 831 DKK 229 DKK 1,060 ~ $148 78% 2025 DKK 456 DKK 238 DKK 694 ~ $109 66%
USD figures for 2025 are reported directly by Novo Holdings; figures for prior years are derived from the DKK amounts using European Central Bank euro reference rates at 31 December of the respective year. The composition reflects that the majority of the foundation's wealth, as measured by AUM, is concentrated in its controlling stakes in Novo and Novonesis.
The decline in AUM from year-end 2024 to year-end 2025 was driven primarily by a fall in Novo's share price; Novo Holdings reported a return of −46.6% on its Novo holding for 2025.
Types of grants The Novo Nordisk Foundation offers grants under five main models: Open-competition Grants: These are regular research grants awarded through open calls to the academic community. They include both shorter-duration project-focused grants and longer-duration research leader grants. Stand-alone Grants: These are awarded within the Novo Nordisk Foundation's focus areas based on peer reviews. They encompass project grants, research leader grants, investigator grants, fellowships, infrastructure grants, and more. Partnerships: Grants awarded for collaborations with public and/or private partners. Impact Investments: Targeting companies like start-ups, often in the form of loans and investments, to support activities with positive societal impact. Own Initiatives: Grants for initiatives that start as local units of the Novo Nordisk Foundation and then are spun out as independent foundations.
Distribution of grants The foundation has an objective of providing support for scientific, humanitarian and social purposes. The grants go primarily to support research in biomedicine, biotechnology, general medicine, nursing and art history at public knowledge institutions. Humanitarian and social purposes includes the Steno Diabetes Center research hospital.
Prizes The Novo Nordisk Foundation awards a number of prizes, including the Novo Nordisk Prize for outstanding research in medical science and the Novozymes Prize focusing on biotechnology and environmental research. The Novo Nordisk Foundation also recognise achievements in teaching and education in the sciences through awards such as the Hagedorn Prize and various scholarships and grants to support upcoming scientists and educators.
International prizes The Novo Nordisk Prize – Advances in medical science The Novozymes Prize The Marie and August Krogh Prize The Jacobaeus Prize The Hagedorn Prize The EFSD and the Novo Nordisk Foundation Precision Diabetes Medicine Award Obesity Prize for Excellence Diabetes Prize for Excellence Novo Nordisk Foundation Lecture Prize EFSD/Novo Nordisk Foundation Future Leaders Award Programme
Teaching prizes Novo Nordisk Foundation Prize for Upper-secondary School Science Teachers Novo Nordisk Foundation Prize for Science Teachers at University Colleges Novo Nordisk Foundation Prize for Science Childhood Educators Novo Nordisk Foundation Prize for Primary School Science Teachers Novo Nordisk Foundation Prize for Lower-secondary School Science Teachers Novo Nordisk Foundation Nature-based Educator Prize
Reception Role in research and funding The level of research funding concentration granted from enterprise foundations has consistently been a central issue in science policy discussions. Intensive concentration has been viewed both as a means to enhance and direct research investments effectively and as a concerning trend leading to excessive competition, reduced diversity, and the selection of conservative topics.MIT Press Direct: Concentration of Danish research funding on individual researchers and research topics: Patterns and potential drivers:https://direct.mit.edu/qss/article/1/3/1159/96125/Concentration-of-Danish-research-funding-on
There is a focus on evaluating potential imbalances in the distribution of research funds in Danish society regarding the role of the Novo Nordisk Foundation in advancing scientific research and innovation.Finans.dk (Article in Danish): The balance of power is shifting: Novo Nordisk Foundation pays 10 per cent. of all public research in Denmark: https://finans.dk/erhverv/ECE12214153/magtbalancen-skrider-novo-nordisk-fonden-betaler-10-pct-af-al-offentlig-forskning-i-danmark/
One criticism is related to the foundation's significant economic influence in the research landscape. The substantial grants from the foundation may inadvertently overshadow other sources of research funding and potentially lead to a concentration of resources in certain research areas closely aligned with the foundation's priorities and interests.MedWatch.dk (in Danish): Researchers fear falling out of favor with the Novo Nordisk Foundation.
https://medwatch.dk/samfund/article15890695.ece
Concerns have been raised about the potential influence of the Novo Nordisk Foundation's agenda on the direction of scientific research. Critics express concerns about the potential effect of the foundation's allocation of funds on the diversity of research topics and perspectives within the Danish scientific community,Information.dk (in Danish): External money distorts research. Here is an insight.