Novo Nordisk A/S
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Novo Nordisk A/S
Company History
Founded 1989 in Bagsværd, Denmark
Last reviewed: 2026-06-08 · By Swet Parvadiya
Copenhagen, 1922: August Krogh, who had won the Nobel Prize in Physiology or Medicine two years earlier for his work on capillary regulation, traveled to Canada after reading about insulin's discovery by Frederick Banting and John Macleod. He obtained a license from the University of Toronto to manufacture insulin in Scandinavia. The following year, two separate Danish laboratories — Nordisk Insulinlaboratorium and Novo Terapeutisk Laboratorium, founded in 1923 and 1925 respectively — began insulin production.
For sixty-six years these two companies competed with each other in the Danish and global insulin markets, developing modestly different manufacturing processes and product formulations. The 1989 merger that created Novo Nordisk combined their insulin portfolios and their research capabilities into a single entity that could compete more effectively against Eli Lilly's entrenched US market position. The merger also combined their research programs in diabetes care, which had each been pursuing GLP-1 receptor biology as a potential therapeutic approach.
The development of semaglutide began in earnest in the 2000s, building on earlier GLP-1 drug candidates including liraglutide (Victoza), which launched in 2009 and established the commercial viability of the class. Semaglutide's advance over liraglutide was primarily structural: a modification to the molecule's fatty acid side chain extended its half-life sufficiently to allow weekly rather than daily dosing — a difference that proved enormously significant for patient adherence. The SELECT trial results published in 2023, showing that Wegovy reduced major cardiovascular events by 20% in non-diabetic obese patients, transformed the drug from a weight management product into a cardiovascular medicine with implications for the entire cardiometabolic treatment model.
Hans Christian Hagedorn was a Danish physician and researcher who played a pivotal role in the introduction of insulin to Scandinavia. After meeting Frederick Banting in Canada in 1923, Hagedorn worked with August Krogh to establish the Nordisk Insulinlaboratorium in Copenhagen. His background in clinical medicine gave him a unique perspective on the practical challenges of diabetes management, driving his focus on developing insulin formulations that required less frequent injections. During his tenure, he oversaw the development of protamine insulin and NPH insulin, which became the standard of care for diabetes treatment for decades. Hagedorn was also known for his commitment to making insulin affordable and accessible to all patients, a philosophy that remains core to Novo Nordisk's corporate culture. Despite the commercial success of the company, Hagedorn maintained a modest lifestyle and donated a significant portion of his wealth to medical research. He is widely respected in Denmark for his role in transforming diabetes from a fatal diagnosis into a manageable chronic condition.
Harald Pedersen was a Danish chemist and business executive who served as the CEO of Novo Terapeutisk Laboratorium from its founding in 1925 until the 1950s. He was the primary architect of Novo's early manufacturing strategy, focusing on industrial-scale production of insulin and other biological products. Pedersen's career in chemistry spanned over four decades, during which he held various leadership positions in research and operations. His leadership style was characterized by a focus on scientific rigor and process efficiency, qualities that were essential in navigating the complex challenges of large-scale biologics manufacturing. After stepping down as CEO, Pedersen remained active in the company as a board member and advisor, serving on the boards of several major Danish corporations. He is widely respected in Denmark for his role in creating a global biological manufacturing leader and for his commitment to maintaining the company's headquarters in Denmark.
August Krogh and Hans Christian Hagedorn founded the Nordisk Insulinlaboratorium in Copenhagen, securing the licensing rights to produce insulin for the Scandinavian countries.
Harald Pedersen and a group of Danish physicians founded Novo Terapeutisk Laboratorium to produce insulin and other biological products using industrial-scale fermentation processes.
The $1.5 billion merger of Novo Industri and Nordisk Insulinlaboratorium was completed, creating Novo Nordisk A/S as one of the world's largest insulin manufacturers.
Novo Nordisk launched Insulin aspart, the first rapid-acting insulin analog, which significantly improved postprandial glycemic control and established the company as a leader in diabetes care.
Novo Nordisk launched Insulin detemir, a long-acting basal insulin analog with a flat action profile and reduced risk of hypoglycemia compared to NPH insulin.
Novo Nordisk launched Victoza, the first once-daily GLP-1 receptor agonist, marking the company's strategic pivot from insulin to incretin-based therapies.
Novo Nordisk launched Ozempic, a once-weekly GLP-1 receptor agonist for type 2 diabetes, which became the fastest-growing diabetes drug in history.
Novo Nordisk launched Wegovy, a high-dose formulation of semaglutide for chronic weight management, demonstrating an average weight loss of 14.9% in the STEP-1 trial.
Novo Nordisk announced the results of the SELECT trial, demonstrating a 20% reduction in major adverse cardiovascular events for semaglutide 2.4mg in non-diabetic obese patients.
Novo Holdings acquired Catalent for $16.5 billion, securing three critical fill-finish facilities to eliminate the physical supply constraints that limited Wegovy sales.
Novo Nordisk reported 290.42 billion DKK ($42.7 billion) in net sales for FY2024, with operating profit reaching 125.3 billion DKK and free cash flow at 91.2 billion DKK.
Novo Holdings acquired Catalent for $16.5 billion to secure three critical fill-finish facilities in Indiana, Belgium, and Italy, eliminating the physical supply constraints that limited Wegovy sales.
Novo Nordisk acquired Dicerna for $3.3 billion to gain control of its proprietary RNA interference (RNAi) technology platform, specifically the GalNAc conjugate technology for targeted liver delivery.
Novo Nordisk acquired Actual Analytics, a healthcare data analytics company, for $150 million to enhance its commercial intelligence and real-world evidence capabilities.
Novo Nordisk's heritage traces directly to August Krogh, a Danish physiologist who had won the 1920 Nobel Prize in Medicine for his work on capillary regulation. In late 1922, Krogh learned of the breakthrough insulin work being conducted at the University of Toronto by Frederick Banting and Charles Best, and he traveled to Toronto with his wife Marie — herself a physician and a Type 1 diabetic — to seek a manufacturing license for Scandinavia. Banting and Best granted Krogh a license, and on returning to Copenhagen Krogh partnered with physician Hans Christian Hagedorn to found Nordisk Insulinlaboratorium in 1923, the first European manufacturer of insulin. Two former Nordisk employees, brothers Harald and Thorvald Pedersen, broke away in 1925 to found Novo Terapeutisk Laboratorium, a competing Danish insulin producer. For sixty-six years Novo and Nordisk operated as separate Danish insulin specialists, each developing distinctive formulations: Nordisk introduced isophane (NPH) insulin in 1946 (Hans Christian Hagedorn's invention) and Lente insulin in the 1950s, while Novo developed the Penfill cartridge system. The two merged on January 1, 1989 to form Novo Nordisk, creating a single Danish insulin leader with approximately 30-35% of the global insulin market at the time of merger.
The 1989 merger of Novo Industri and Nordisk Insulinlaboratorium combined Denmark's two leading insulin specialists into a single entity, Novo Nordisk A/S, with the explicit objective of competing globally against Eli Lilly (which had dominated insulin since the 1922 Banting and Best license) and Hoechst (now part of Sanofi). At the time of merger Novo had revenue of approximately DKK 5.5 billion and Nordisk approximately DKK 2.4 billion, with combined employees of roughly 9,200. The two companies' product portfolios were complementary: Novo brought modern recombinant DNA insulin manufacturing capability and the Penfill cartridge delivery system, while Nordisk brought the NPH (isophane) insulin formulation pioneered by Hans Christian Hagedorn and a strong European clinical reputation. The combined Novo Nordisk became a top-three global insulin company alongside Eli Lilly and Hoechst, with approximately 30-35% global insulin market share. The merger also consolidated the ownership structure under the Novo Nordisk Foundation (originally the Nordisk Insulin Foundation and the Novo Foundation, later combined), establishing the foundation-controlled structure that remains in force more than three decades later. The Novo Nordisk Foundation today holds approximately 28% of the company's economic interest and majority voting rights.
Novo Nordisk's transformation from an insulin-focused diabetes specialist into a global GLP-1 leader unfolded across roughly fifteen years and one molecule: semaglutide. Novo Nordisk's GLP-1 program began in the late 1990s following research into glucagon-like peptide-1, a gut-secreted incretin hormone with anti-hyperglycemic and weight-reducing effects. The first generation Novo GLP-1 was liraglutide, marketed as Victoza for Type 2 diabetes (approved 2009) and Saxenda for obesity (approved 2014 at higher dose), which reached peak sales of roughly $4 billion. The second generation was semaglutide, a longer-acting GLP-1 analog with weekly dosing instead of daily. Semaglutide was first approved in December 2017 as Ozempic (subcutaneous, for Type 2 diabetes), then May 2019 as Rybelsus (oral semaglutide), and June 2021 as Wegovy (higher-dose subcutaneous for chronic weight management). The Wegovy approval triggered an explosion in demand that exceeded supply for years and reshaped the diabetes-and-obesity treatment landscape. Combined semaglutide revenue grew from $1 billion in 2019 to over $26 billion in 2024 across the three brands. The transformation made Novo Nordisk briefly Europe's most valuable company by market capitalization in 2023, peaking near $570 billion before retracing in 2024-2025.
Novo Nordisk's market capitalization peaked at approximately $570 billion in September 2023, briefly making it the most valuable publicly traded company in Europe — exceeding LVMH and the major European industrial and energy companies. The peak share price was approximately DKK 1,025 per share on the Copenhagen Stock Exchange (NVO on NYSE as ADRs). Three factors drove the valuation. First, demand visibility: Wegovy and Ozempic had multi-year waiting lists, with US payers (commercial insurers and Medicare Advantage) increasingly covering the medicines and supply unable to meet demand. Second, market sizing: analysts projected the global obesity market alone could reach $150-200 billion annually by 2030, with Novo Nordisk and Eli Lilly together capturing the vast majority of revenue. Third, financial performance: 2023 revenue grew 31% year-on-year on a constant-currency basis to DKK 232 billion ($34 billion), operating margin reached 44%, and free cash flow exceeded $13 billion. The valuation implied that the GLP-1 market would not only meet projections but that Novo Nordisk would sustain market leadership against tirzepatide (Eli Lilly's GIP/GLP-1 dual agonist approved 2022 as Mounjaro for diabetes and 2023 as Zepbound for obesity). Through 2024-2025 the share price retraced to roughly $90-100 (DKK 600-700) on a combination of CagriSema Phase III disappointment, tirzepatide competitive pressure, and US pricing scrutiny — leaving market cap near $400-450 billion, still among the most valuable European companies.
On February 5, 2024, Novo Holdings — the parent investment vehicle owned by the Novo Nordisk Foundation — announced the acquisition of Catalent Inc., a New Jersey-based contract development and manufacturing organization, for approximately $16.5 billion in cash. The transaction structure was distinctive: Novo Holdings (the foundation-controlled investor) acquired Catalent as a whole company, then immediately sold three Catalent manufacturing facilities (in Brussels, Belgium; Indiana; and Bloomington, Indiana) to Novo Nordisk A/S for approximately $11 billion. The remaining Catalent facilities continued to serve Catalent's broader contract-manufacturing customer base. The strategic rationale was supply-chain critical: Novo Nordisk's GLP-1 demand had structurally exceeded its internal manufacturing capacity for years, and Wegovy and Ozempic shortages had limited revenue and patient access since 2021. The three acquired facilities specifically conducted fill-and-finish operations (the final step of converting bulk drug substance into injectable cartridges and prefilled pens) that were the binding constraint on GLP-1 supply. Acquiring captive fill-and-finish capacity removed reliance on external contract manufacturers and accelerated the timeline to fully supplying global Wegovy demand. The transaction closed in late 2024 after regulatory clearance, and Novo Nordisk has since invested billions in additional manufacturing expansion in Denmark, North Carolina, and France.