Invitation To Growth 2014 UK

Page 1
Denmark and Novo Nordisk

travelling companions for
the long road ahead
Novo Nordisks story starts in the 1920s.
Nobel Prize Winner in Physiology and
Medicine August Krogh and medical doctor
Hans Christian Hagedorn founded the
Nordisk Insulinlaboratorium (Nordisk Insulin
Laboratory) in 1923. Krogh obtained the
rights to produce insulin in Scandinavia
from the University of Toronto where
insulin had been discovered in 1921.
Harald and Thorvald Pedersen were two
brothers who had been trained as a
machinist and a pharmacist, respectively.
They founded the Novo Terapeutisk
Laboratorium (Novo Therapeutic
Laboratory) in 1925. This meant that
Denmarks stronghold in the area of
insulin and diabetes was founded on
Krogh and Hagedorns biological and
medical competences and the technical
and pharmaceutical abilities of the
Pedersen brothers. The two companies
competed side by side until 1989 when
they merged to form Novo Nordisk.
A deep understanding of patients medical
needs drove product development at
Novo and Nordisk. This was made
possible through contacts and cooperation
with the clinical and academic research
environment. As early as the 1930s, both
companies had even managed to establish
their own diabetes hospitals.
Thanks to chemical and technical research,
new and improved insulin preparations
were developed resulting in great strides
being made in the treatment of diabetes.
With Nordisk, Novo and later Novo
Nordisk, a journey began in the areas of
medicine and technology that contributed
greatly to Danish society. A journey that
was only made possible through close
cooperation between the companies and
the Danish academic world.
Novo Nordisk A/S

is part of
the Novo Group
Advanced medical and biotechnological

research environments in Denmark have
made it possible for Novo Nordisk to
recruit highly qualified employees. We
have developed world-class competences
in pharmacology, protein chemistry and
biotechnology, and translated these skills
into continuous product development
and hi-tech production. This ongoing
cooperation between Novo Nordisk and
Danish research environments has helped
create new groundbreaking treatments for
diabetes patients all over the world.
The Novo Nordisk Foundation owns 25%

of Novo Nordisks shares through Novo A/S.
In 2013, this meant that about DKK 2.5
billion was channelled from Novo Nordisk
to Novo A/S in the form of dividends, and
a share of this was forwarded to the Novo
Nordisk Foundation. In the same year, Novo
A/S invested DKK 5.5 billion in Danish
and international life science companies.
In addition, the Novo Nordisk Foundation
donated approximately DKK 0.8 billion to
scientific, humanitarian and social causes
primarily in Denmark.
Novo Nordisk has directly contributed to

strengthening and developing Denmarks
academic research in the areas of medicine
and technology. As early as 1924, the
Nordisk Insulinfond (Nordisk Insulin
Foundation) was set up to manage the
companys profits to ensure they went to
scientific and humanitarian causes. When
Novo Nordisk was founded, Novo Nordisk
Fonden (the Novo Nordisk Foundation)
was established to collect a significant
portion of Novo Nordisks profits through its
shareholding in the company. Since 2007,
the Novo Nordisk Foundation has allocated
more than DDK 5 billion to Danish research.
In the years ahead, it is expected to donate
almost DKK 1.5 billion annually to scientific
and humanitarian causes.
Since 2007, the Novo Nordisk Foundation

has donated more than DKK 5 billion
to Danish research. And it is expected
to increase its donations in the years
ahead. This means that the Novo Nordisk
Foundations annual donations to scientific,
humanitarian and social causes will
increase to approximately DKK 1.6 billion
in 2018.
For almost 100 years, Novo Nordisk has

enjoyed close ties with Danish academic
research. Strong competences, close
cooperation, talent exchange and great
results have benefited Novo Nordisk, the
rest of the biopharma cluster, Danish
research environments and Denmark as
a whole in terms of growth and new jobs.
This Invitation to growth is an invitation
from Novo Nordisk to continue this journey
together.
Novo Nordisk A/S
2.5billion
DKK in 2013
Novo A/S
Investments
in life science
companies
5.5billion
DKK in 2013
Novo Nordisk
Foundation
Donations
Mads Krogsgaard Thomsen
Executive Vice President and
Chief Science Officer (CSO)
0.8billion
DKK donated in 2013
Page 2
Page 3
Creating growth
together
At Novo Nordisk, we have significant
growth opportunities for the years
ahead in Denmark. New products,
additional factories and many more
employees and 3,000 of them will
be working in our research and
development organisation (R&D).
We are a global company with deep
Danish roots. Our R&D headquarters
and a large part of our production
facilities are located in Denmark and
are built on a strong tradition of
collaboration with national universities
and the Danish biotech and local
communities. We contribute actively
to this by creating economic growth
and new jobs at all levels, paying taxes
and taking our corporate responsibility
seriously. Finally, we are committed to

investing a large part of company profits
back into research and development of
new and better treatments.
Given the right growth conditions, Novo
Nordisk can continue to strengthen
its long-standing contribution to job
creation and prosperity in Denmark.
To do this, the company needs two
very important criteria to be fulfilled:
Universities must educate enough talent
and they must maintain a very high level
of basic research. Unfortunately, there is
cause for concern on both fronts.
We, therefore, produced this publication
to examine the mutual benefits of
effective collaboration, describe the
critical barriers to new growth, and invite
politicians, university management, staff,
students and other stakeholders to find
solutions to these challenges that are in
everyones best interests.
Contents
01
The core of a strong cluster

Novo Nordisk is an important part
of the Danish biopharma cluster,
which is one of the strongest in
Europe.
The ripple effect

Biopharma is a highly productive
cluster that creates growth and
jobs even in other clusters for
employees with high-level and
basic education and training.
p 10
02
p 08
04
A shared adventure
A close and long-standing co
operation between industry and
basic researchers has played a
crucial role in the development
of Novo Nordisks products and
devices, the latest example being
in the joint collaboration that led
to the success of the companys
diabetes treatment, Victoza.

p 20
03
Potential growth
If Novo Nordisk succeeds in hiring
6,000 new employees by 2022,
Danish society would benefit
from an additional 15,000 jobs.
05
06
p 26
40.000
Mutual benefits
Danish universities and biopharma
companies benefit from close
cooperation in the areas of talent
development, research and
innovation.
p 14
Talent deficit
Unless stronger candidates and
PhD graduates are educated
especially in the areas of health and
natural sciences the biopharma
cluster in Denmark will suffer from
a shortage of R&D talent.
p 28
35.000
30.000
25.000
p 34
2034
2032
2030
2028
2026
2024
2022
2020
2018
2016
2012
2010
2008
2006
2004
10.000
The cleverest solutions

Politicians, universities and the
business sector have common
interests in long-term solutions.
Here, we present seven possible
paths.
p 36
2002
08
2000
07
15.000
A boost for basic research

Excellent basic research is key
to attracting and educating
new talented researchers.
2014
20.000
Indskrevne ph.d.er i forhold til VIP-rsvrk
STUD/VIP-ratio
6
25
20
4
15
3
10
1
0
0
2007
SUND
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
01
The core of a
strong cluster
Novo Nordisk is an important part of
the Danish biopharma cluster, which
is one of the strongest in Europe.
Companies are not islands. Even
the largest in any given industry is
dependent on being surrounded by a
high-performing network of related
companies in a collective business cluster.
The bigger and stronger the cluster, the
more effective it is in attracting talent
and businesses internationally. These
laws of attraction will eventually trigger
the emergence of a new generation of
companies. Silicon Valley is the most
famous example of how companies
gravitate towards an innovative region.
The Danish biopharma cluster is located
in an innovative region, primarily around
Denmarks capital, Copenhagen. Within
biopharma, Copenhagen is the most
specialised of the EUs metropolitan
regions. Biotech research makes up 20%
of private research in Denmark the
highest proportion in the entire OECD.
And when it comes to biotechnology
companies share of national patents,
OECD reports that Denmark is number
one in the world.
No other industrial sector in Denmark
has a cluster that can match biopharmas
international standing. In other words,

the pharmaceutical industry is the
industry in Denmark where net exports
make up the largest share of production
value. This figure is not only a good
measure of how tough the international
competition is; it also reflects how well
the industry is doing in any given country.
Synergies and mutual conditions
With a global turnover of DKK 83.6
billion, of which DKK 49 billion is
Danish-based revenue, Novo Nordisk
is by far the largest company in the
biopharma cluster. There are currently
83 companies in the cluster. Between
them, they employ approximately
20,000 people and invest around DKK
10 billion annually in research and
development in Denmark.
The companies in the cluster are rarely
in direct competition with each other.
For Novo Nordisk, the other businesses
provide a valuable opportunity to attract
and circulate knowledge and talent.
About a quarter of Novo Nordisks
employees come from other companies
in the cluster. Similarly, nearly every
other employee moves on to another
company in the cluster when they leave
Novo Nordisk.
Denmarks biopharma cluster

The biopharma cluster is made up of companies
that use technologies in the areas of proteins,
genetics, immunology, molecular and cellular
biology, and other biotechnology areas to develop
new products. The cluster includes traditional
pharmaceutical companies, as well as a multitude
of biotech start-ups.
Thrombologic ApS
In 2013, Novo Nordisk achieved a global turnover of

DKK 83.6 billion.
Biogen Idec (Denmark) Manufacturing ApS
The companies illustrated here are the largest in the

cluster (based on Danish turnover), together with a
selection of smaller companies.
Zealand Pharma A/S
MSD
ALK AbelloA/S
LEO Pharma A/S
Genmab A/S
Santaris Pharma A/S
Egalet Danmark
Although the companies in the cluster

are different, they face similar challenges
and conditions. Therefore, whatevers
good for the cluster is typically good for
Novo Nordisk and vice versa.
Nycomed Danmark ApS
Novo Nordisk A/S
NeuroSearch A/S
Syntese A/S
Symphogen A/S
Epitherapeutics ApS
Lundbeck (H. Lundbeck A/S)
Export specialisation
Food, beverages and

tobacco industry
Plastic, glass and
concrete industry
Net exports of industry

output in percentage terms.
A comparison of selected
industries.
Pronova BioPharma Danmark A/S
Electronics
industry
Textile and
leather industry
-120 -100 -80
Source: Damvad and Statistics Denmark
Page 8
Bavarian Nordic A/S
Pharmaceutical industry
Net exports is a measure of

how competitive an industry
is, and how well it can survive
against the competition.
-60
-40
-20
20
40
Orphazyme
Remaining clusters
60
Source: Novo Nordisk and Experian

Page 9
02
The ripple
effect
worked is almost double the average

industry standard.
Biopharma is a highly productive

cluster that creates growth and jobs
both within the biotech cluster
and in other clusters for employees
with high-level and basic education
and training.
The building of Novo Nordisks new
plants in Copenhagen will create
almost 2,000 jobs during the two years
that construction work is in progress.
Moreover, these fixed asset investments
will trigger activities worth about DKK
2.4 billion for the many large and small
companies that contribute directly or
indirectly to the two projects.
So although many of Novo Nordisks
employees are researchers, engineers and
technicians etc, the companys growth
doesnt just benefit the highly educated.
Among the many jobs that are created
in the Danish biopharma cluster, 30%
require skilled labour while another 30%
require employees with basic education
and training.
Denmarks most productive
Some of Denmarks most productive
jobs are within the biopharma cluster.
That means that these jobs produce the
highest value per hour worked. Whereas
the value rate of hours worked in other
industries is around DKK 400, the value
rate per hour of an employee in the
pharmaceutical industry is typically
much higher. In fact, at DKK 1,500,
Novo Nordisks value rate per hour
Its difficult make a direct comparison

of how productive an industry like the
pharmaceutical industry is in relation
to the food industry. We can, however,
compare trends over time. For example,
how well companies in a given industry
manage to increase their employees
performance. Increases in productivity
boost societys wealth and strengthen
company competitiveness creating more
and better-paid jobs.
Highly
qualified
Number of employees in other companies
in the biopharma cluster
6,503
31%
14,005
30%
Basic education
and training
Number of jobs created in the
rest of the economy
46,793
Total number of Danish jobs
67,301
What does 67,000 jobs look like?
DKK million
Approximately 67,000 Danish jobs are directly or

indirectly linked to biopharma. That equates to over
half of the private sector jobs in Denmarks second
largest city, Aarhus.
Income tax (2013)
4,753
DKK million
The biopharma clusters

contribution to the Danish
GDP (2013)
DKK billion 49.9
Skilled
Number of Novo Nordisk

employees
Corporation tax (2013)
4,251
Number of employees in other biopharma companies

are based on data from 2012.
39%
Large societal gains

With a fast-growing number of
employees and a steadily increasing rate
of productivity, Novo Nordisks impact
on the Danish economy is hard to ignore.
In 2013, Novo Nordisk achieved exports
in the region of DKK 36 billion and paid
more than DKK 4.2 billion in tax, which
equates to more than 5% of all corporate
tax in Denmark (2013). Added to that is
DKK 4.7 billion in income tax from the
company employees.
36.0
Page 10
The biopharma cluster is a catalyst for employment

in the country. For every 100 people employed in
biopharma, a further 240 jobs are created in the rest
of the Danish economy (resulting employment based
on Novo Nordisks supply chains).
On 1 May 2014, Novo Nordisk hired its 40,000th

employee. Out of these 40,000, approximately
14,000 are employed in Denmark.
Its a well-known fact that since the

mid-90s Denmark has experienced low
growth in productivity compared to
other OECD countries. In the last 20
years, the business sector as a whole
has only managed to increase the value
rate per hour worked by 40%. The
pharmaceutical industry has fared better
with an increase of 80% during that
time In the same period, Novo Nordisk
achieved a steady increase in productivity,
which is now four times higher than in
1990 with significant growth in the last
five years. This is a first-time achievement
in the history of Danish business.
Novo Nordisks exports (2013)
Source: Novo Nordisk, Damvad and Statistics Denmark
Biopharma creates jobs in Denmark
There are almost 240,000 private jobs in the city of

Copenhagen (2013). The Danish biopharma cluster
is primarily located in the capital region.
Number of employees
in the private sector
(1,000 jobs)
120
100
*incl secondary jobs

80
60
40
A ar h u s
20
0
Aarhus
DKK billion
Aalborg
Biopharma
cluster*
Esbjerg
Novo
Nordisk*
Randers
Page 11
Novo Nordisk multiplies

productivity
The fact that Novo Nordisk has increased its productivity considerably every year is a significant contributory
factor to the fact that the pharmaceutical industry in
Denmark has quadrupled in size over the last 20 years.
By comparison, the rest of the industry has improved
productivity by 80% since 1990 but the private service
sector managed to pull Denmarks combined business
sector development down to 40%.
Jobs with sky-high value
Productivity is measured in terms of value created per

hour worked. Value creation is calculated by subtract
ing production costs for raw materials, processing aids
and services from the sales price (in real terms).
With a production value of

DKK 1,500 per hour worked,
Novo Nordisks productivity is
almost twice as high as the
pharmaceutical industry as
a whole which in turn is
twice as productive as other
industries.
Total industry
Total business sector
(market economy)
500
500
400
400
300
200
100
Index
Other industries
DKK 400 per hour worked
DKK 800 per hour worked
Novo Nordisk
DKK 1,500 per hour worked
300
200
100
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
03
Mutual
benefits
Danish universities and biopharma
companies benefit from close
cooperation in the areas of talent
development, research and
innovation.
When Novo Nordisk contributes to the
Novo Nordisk Foundation so that it can
donate billions to Danish research every
year it is supporting a sustainable
business model rather then engaging in
philanthropy. Good cooperation with
the academic research environment is
crucial for research-intensive companies to
maintain their international competitive
ness. Basic research of outstanding quality
is, in many ways, the industrys lifeline
because:
the quality of research-based education
is dependent on basic research of the
highest standard;
a world-class basic research
environment attracts top international
researchers and research investment;
proximity and easy access to skilled
researchers increase the number
and quality of collaborative relations
between universities and companies;
and
the quality of research is important so
that companies can recreate and build
on basic scientific findings in their own
laboratories.
Approximately 5,000 employees in Novo
Nordisks R&D organisation work with
research and development every day.
However, Novo Nordisk, as well as most
other drug development companies, does
not conduct basic research itself. Rather, it
bases its development projects on quality
basic research from academia.
A global hub
Novo Nordisk doesnt just boost co
operation with public research through
financial contributions. The company is
also a hub for the global exchange of
scientific findings, especially within the
area of diabetes.
Novo Nordisk has developed an extensive
network of partners at universities
around the world a network that acts
as an important pipeline for drawing new
knowledge to Denmark. At the same
time, Novo Nordisk is a nationally- and
regionally-rooted company with close
scientific partnerships with universities
across Denmark and Sweden.
In the last two years, more than a third
of Novo Nordisk researchers have worked
closely with Danish research institutions.
This is quite an impressive figure, con
sidering that half of all research-based
companies in Denmark have no contact
with university research at all (Ministry
of Higher Education and Science). Danish
universities also benefit from foreign
researchers who come to Denmark
to work at Novo Nordisk since our
international researchers cooperate with
Danish universities almost as much as
their Danish colleagues do.
This intensive cooperation with Danish
universities results in, among other
things, joint scientific publications
with obvious mutual benefits. Scientific
articles remain the science communitys
primary way of sharing and building on
new knowledge and understanding.
Private-public collaboration results in
higher-quality articles. For instance, the
articles that Novo Nordisk publishes
together with researchers from Danish
universities have a significantly greater
scientific impact than comparable
articles published separately by either the
company or the researchers alone.
Novo Nordisk goes against

the tide and steps up
research and development
Public
research
Biopharma
cluster
Innovative leaps
New knowledge
Since 2008, Novo Nordisk has

increased its investment in
research and development by
approximately 50%. Whereas,
in the same period, research
carried out by private entities
and other organisations in
the biopharma cluster experi
enced a slight decline.
160
2008 = Index 100
110
Novo Nordisk research

and development
Private research and
development (excluding
Novo Nordisk)
Biopharma clusters
research and development (excluding Novo
Nordisk)
Talent development
150
140
130
120
100
90
80
2008
2009
2010
2011
2012
Source: Novo Nordisk and Statistics Denmark
Research projects
Publications
Patents
New products
Entrepreneurship
Close cooperation in research

Public research and biopharma companies have many
touchpoints, strong areas of common interest and
obvious mutual benefits for example when it comes
to talent development, building a strong basic research
environment and scientific collaboration.
A strong flow of talent

Novo Nordisk finds itself in the middle of the
continuous stream of talent that flows through the
biopharma sector. A fifth of Novo Nordisks employees
come directly from higher education (Masters or PhD)
or university research positions. A quarter of them
come from other organisations within the cluster
which, in turn, are also the main beneficiaries of
those employees who leave Novo Nordisk.
The inflow is based on a survey of 2,258 Novo
Nordisk R&D employees in Denmark. The outflow is
based on data from 586 former Novo Nordisk R&D
employees in Denmark and figures from Statistics
Denmark.
Page 14
Recent graduates 18%
Academia 20%
Pharmaceutical companies 25%
43% (including other relevant
R&D-based companies)
16% Chemical and other industries
9% Education,
including academia
8% Healthcare
Other business sector 26%
Public sector and healthcare 11%
7% Trade
17% Others
Page 15
University of North Carolina

at Chapel Hill
Harvard University
Stanford University
University of Aalborg
University of Southern Denmark
Karolinska Institutet
A total of 504 employees

worked closely with Danish
universities and 373
employees cooperated
with foreign universities.
University of Aarhus
Proportion of employees with

cooperative ties to the
universities concerned during
2011-13. Based on survey data.
90%
University of Lund
Novo Nordisk engages in active collaboration with

universities from Melbourne to Minnesota, but it
has particularly close ties to Danish and Swedish
universities. This is partly due to strong Scandinavian
research traditions and environments. But it also
reflects the critical role that geographic proximity
plays in first-rate research environments.
100%
Technical University
of Denmark
Novo Nordisk R&D

employee links to
universities 2011-2013
University of
Copenhagen
Global reach
local roots
Top 10
partners
80%
Danish universities
70%
Foreign universities
60%
Other universities
(outside the top 10)
50%
40%
30%
20%
10%
Karolinska
Lund
Harvard
Stanford
NC Chapel Hill
Source: Novo Nordisk and Statistics Denmark

Page 16
Page 17
A boost for Danish diabetes research

Research results are communicated and shared
through publications. Publications and their citations
are considered hard currency in academia and
represent the primary way of sharing and building
on new scientific understanding. Novo Nordisk has
contributed to 39% of Danish diabetes research
published within the past 10 years.
The effectiveness of Novo Nordisk articles is almost

twice as high as the OECD average. This helps to
increase the quality of Danish diabetes research.
Number of diabetes publications

in Denmark
4,587
Novo Nordisk produces scientific papers about diabetes

at a prolific rate. In fact, Novo Nordisk publishes three
times as many articles about diabetes research than its
competitors Eli Lilly and Sanofi, which are numbered
two and three on the list, respectively.
The Netherlands
406 publications
A small publishing
giant
Number of diabetes research
publications per million inhabitants.
When taking country size into consideration, Denmark produces more
publications about diabetes than any
other country. More than Sweden
and Switzerland, more than twice as
many as the Netherlands, and five
times as many as Germany.
Germany
171 publ
Denmark
826 publications
Switzerland
471 publications
Sweden
614 publications
Number of diabetes publications
from Novo Nordisk
1,772
We stand stronger
together
When university researchers pub
lish findings about diabetes in
collaboration with Novo Nordisk
researchers, they are cited signifi
cantly more often than when the
parties publish separately. There is
a further slight increase in effective
ness when researchers from foreign
universities are part of the team
contributing to the publication.
The effectiveness is measured by
how often Novo Nordisk is quoted
in scientific publications compared
to the OECD average in the same
field of research. It provides an
index, where the average for the
OECD countries is 1.
Danish
universities
1.85
Novo Nordisk
1.87
Cooperation between
Novo Nordisk and
Danish universities
2.45

Page 18
Page 19
04
A shared
adventure
A close and long-standing co
operation between industry and
basic research has played a crucial
role in the development of Novo
Nordisks latest diabetes treatment,
Victoza and the joint adventure
continues in other related research
projects being pursued by the
company.
About one million people with diabetes
worldwide now benefit from the
diabetes treatment Victoza, which
is developed and manufactured in
Denmark. Novo Nordisk continues to
explore the potential of other drugs
that are based on the same biological
substance (GLP-1) and has pulled out all
the stops to develop GLP-1 treatment
in tablet form, thereby making it easier
to take. There is also potential in GLP-1
being used to treat clinical obesity, and
Novo Nordisk submitted applications
to gain regulatory approval to market a
new form of its GLP-1-based drug for
clinical obesity in Europe and the US
during 2014.
The story of how a scientific discovery
was transformed into an effective drug
over the course of a century has all the
twists and turns of an exciting adventure
story: a long and dangerous journey;
severe hardships along the way; and, of
course, a happy ending thanks to the
courage, perseverance and cooperation
that remain the cornerstones of Novo
Nordisks continued success.
Page 20
Competition across the Atlantic

The story goes right back to the begin
ning of the 1900s when researchers
discovered that gut hormones
(incretins) affect how sugar is digested
in the body. One incretin in particular
GLP-1 (Glucagon-Like Peptide-1)
attracted the interest of researchers in
Europe and the US in the 1980s as a
possible treatment for diabetes. A global
race ensued, with Danish and American
researchers as the frontrunners: who
would be the first to isolate GLP-1 and
develop it into a usable drug for people
living with diabetes?
The race took place on both sides of the
Atlantic: in Denmark, Professor Jens Juul
Holst from the University of Copenhagen
took over a promising basic research proj
ect from Novo Nordisk researcher, Lise
Heding. At the time, Professor Heding
was hot on the heels of a mysterious
substance from the gut that affected
sugar metabolism.
From his laboratory in Denmark, Jens
Juul Holst managed to isolate GLP-1 and
develop a unique characterisation of
how the hormone worked and how to
measure it in research animals. By testing
the substance in pigs, he could ascertain
how GLP-1 affected sugar metabolism.
The Danish research team presented
their findings at a meeting in Rome at
the European Association for the Study
of Diabetes in 1986; however, it was
Professor Joel Habener from Harvard
University in Boston, who initially got a
patent on the hormone. When?
In the 1990s, Novo Nordisk started
a new project with the ambitious
goal of extending the time that the

ephemeral hormone stayed active in the
bloodstream from a few minutes to a
whole day!
The long road from biology
to treatment
It wasnt long before researchers at Novo
Nordisk and Jens Juul Holsts laboratory
at the University of Copenhagen decided
to join forces. Both parties knowledge
was necessary to develop and test a new
drug candidate against diabetes based
on the GLP-1 hormone.
One of the joint research teams main
challenges was to develop a molecule
that was sufficiently stable and effective
enough to be used for treatment just
once a day. It took several years, with
lots of failed attempts, before a team
in 1997, headed up by Novo Nordisk
researcher Lotte Bjerre Knudsen, finally
succeeded. Through rational design,
they managed to create the worlds first
human GLP-1 analogue, ie a substance
with the same biological effect as
the human bodys own natural GLP-1
hormone. This new treatment is called
Victoza (liraglutide).
and from developmental
treatment to market
However, having the perfect drug
candidate is not enough. The product
needs to be developed so that users can
use it easily and safely every day, and so
that it can be produced and distributed
efficiently in large quantities. The team
responsible for this task worked for
years until they found the right formula
for what was to become the major
breakthrough treatment, Victoza.
The next challenge was to test the safety

and efficacy of the drug candidate on
healthy volunteers, as well as people
with diabetes. Many of the subjects
experienced nausea during the initial
testing but the team was able to
resolve this issue by increasing the
amount of medication given slowly over
time to the therapeutic dose.
With this adjustment in place, Novo
Nordisk proceeded to the last and
crucial step towards market approval
in 2006: the so-called phase 3 clinical
development programme, where the
product is thoroughly evaluated in
controlled clinical trials involving large
numbers of diabetes patients.
The phase 3 programme for Victoza,
is called Liraglutide Effect and Action
in Diabetes (or LEAD for short). It
was comprised of five separate trials
involving over 4,000 people in more
than 40 countries. Based on this exten
sive body of evidence, Victoza was
approved as the first human GLP-1based treatment for type 2 diabetes in
Europe in 2009; approval in the United
States followed in 2010.
Today, the product is used by approx
imately 1 million patients in over 80
countries. With sales of DKK 11.6 billion,
Victoza already makes up more than
10% of Novo Nordisks sales. And theres
far more potential yet
Page 21
The journey of GLP-1 is more than an adventure story

from the world of research and business.
Cost to Novo Nordisk for the development of Victoza (DKK)
Its also the story of how a new drug was developed

to address the unmet treatment needs of people
living with diabetes all over the world.
5.5 billion
Several methods are used

in the attempt to prolong
the longevity of GLP-1 in
the bloodstream.
199495
Professor Jens Juul Holst

works on isolating GLP-1 at
the University of Copenhagen.
Clinician Michael Nauck

(Diabeteszentrum Bad
Lauterberg) proves that GLP-1
can normalise blood sugar
levels in people with type 2
diabetes.
tion
pera
coo
During the GLP-1 experiments,

Novo Nordisk focuses on the
technology platform that is
used to develop insulin.
2002
Novo Nordisk builds a
production facility for
GLP-1 in Kalundborg,
Denmark.
Novo Nordisk starts the

GLP-1 project with, among
others, researcher Lotte
Bjerre Knudsen.
1997
The first human trials
include over 4,000 patients
in 40 countries as part of
the clinical development
programme called LEAD.
1998
The history of Novo

Nordisk spans over 90
years from 1922 to
present day. In 1922,
husband-and-wife medical
research team August and
Marie Krogh travel to
America and return with a
licence to produce insulin
in Denmark.
1970s
1981
Number of countries where Victoza is an approved drug
Alistair Moody from

Novo Nordisk
publishes a paper
together with Jens
Juul Holst.
Hvidre Diabetes
Sanatorium
The Pedersen brothers

start their own insulin
production in 1925,
and establish the
company Novo.
Needs to remain stable

at fluctuating temperatures and over time
and have the ability
to be mass-produced.
A large interdisciplinary
project works over
several years on finding
the right formula for
what is to become
Victoza.
Since GLP-1 is a naturally occurring

gut hormone, it is a good candidate
for development as a tablet-based
treatment. Novo Nordisk has in-
licensed novel tablet technology to
formulate GLP-1 into an oral treatment.
These efforts are also leading the
way for development of oral insulin
treatment at the company. Researchers
worldwide have tried and failed to
develop oral insulin since it was first
discovered more than 90 years ago.
A vibrant and dynamic biopharma

research environment is essential for
Novo Nordisks success in the next series
of innovations that will build on GLP-1
science. The development of Victoza
has already triggered at least two new
research projects at Novo Nordisk:
The road ahead:

The first diabetes tablet
The first discovery led to the develop
ment of the SCALE clinical development
programme, and Novo Nordisk has
recently applied for approval of liraglutide
as a treatment for clinical obesity in both
Europe and the United States.
One is exploring GLP-1s potential

therapeutic effects on appetite.
Diabetes patients on Victoza typically
The consequences of the second discov

er y may be even greater. So far, Novo
Nordisk has invested billions of Danish
Novo Nordisks international reputation

in diabetes and protein-based drugs
makes it an attractive workplace for the
worlds best researchers in protein oral
formulation. This will help speed up the
development of diabetes protein-based
treatments in tablet form a world first.
Currently, Novo Nordisk has a handful
of promising oral GLP-1 and insulin drug
candidates in clinical development.
The journey of GLP-1 is more than just
an adventure story from the world of
research and business. Its the story
of how new science turns into a novel
treatment option for diabetes patients
all over the world.
2010
From new molecule

to stable drug:
kroner in building its own capacity for

the research and development of a
protein tablet and it has strengthened
its partnerships with other biotech
companies in this area to achieve this
goal. A tablet form of either GLP-1 or
insulin would be an important treatment
breakthrough, as a major barrier to
patients accepting insulin and GLP-1
diabetes treatments are the daily
injections.
experience weight loss, so the com

pany is working on a higher dose of
the drug to treat clinical obesity.
Novo Nordisk launches the

worlds first human GLP-1
analogue drug, Victoza.
1981 Nature Publishing Group
The Nordisk Insulin Laboratory is established

in the spring of 1923.
889 million
Jens Juul Holst and colleagues

present the discovery of GLP-1
at the European Association
for the Study of Diabetes
meeting in Rome
in 1986.
Lise Heding, head of

diabetes research at Novo
Nordisk Diabetes Research,
inspires Jens Juul Holst to
embark on the research
that later leads to GLP-1.
In 1922, two scientists manage to extract a small

amount of insulin from a bovine pancreas for the
very first time. And in March 1923, the first patients
benefit from the treatment.
GLP-1 becomes an area

of research specialisation
for Danish biopharma
companies, eg Zealand
Pharma.
Investment in new
facility (DKK)
Freddie Petersen
conducts the first
synthesis of the
human GLP-1
analogue,
liraglutide.
1922
But this innovation story doesnt stop

here. The expertise within GLP-1 and
metabolic research, which is now
established in Denmark, continues to
foster new biotech companies and draw
investment and talent to the country.
1996
Novo Nordisk and Pfizer jointly publish

findings documenting that GLP-1 has
potential as a drug if its presence in
blood can be prolonged.
The adventure continues

Its no coincidence that Victoza was
developed in Denmark. Its discovery
and development required a unique
combination of a passionate and
dedicated research environment, a
drug development company with
the technology, and the expertise to
turn a scientific breakthrough into an
innovative new treatment for diabetes.
Novo Nordisk works

with the University
of Copenhagen to
test how GLP-1
affects blood sugar
levels in animal
models.
1999
First clinical trial..
There are a number of

challenges during the
first clinical trials
the main issue is
that patients experiene
nausea when taking
the drug. A step-wise
approach to dosing
reduces the problem.
80
804,000
11,633,000
Number of patients being treated with Victoza (to date)
200810
2009
2013
MANDAG 7. OKTOBER
NR. 193 / 2013
RGANG 118
PRIS 28,00 KR.
Landsmde / 16-17
Hvad kan vi danskere / 14-15
Fagbevgelsen tager
imod Lars Lkkes
udstrakte hnd
Rekordmange gazeller
fr jobfest bremset
af modvillige banker
Investor / 4-6
Topinvestor:
Kb op i nye
markeder nu
Foto: Claus Fisker/Scanpix og Simone Astrid Pedersen
Novo satser 20 mia kr

p diabetestablet
Oral
Danmarks mest vrdifulde koncern vil bruge

op mod 20 mia. kr. p at udvikle tabletter
mod diabetes. Satsningen er Novos hidtil
strste, siger koncernforskningsdirektr
Mads Krogsgaard Thomsen.
Novo gr tilbage til en fuser

Kamp om et marked p 100 mia. kr.
Ny fabrik skal bygges i Kalundborg
Side 6-7
Cooperation with
biotech companies
Merrion and Emisphere
on tablet technology
(oral drug delivery).
The largest international

recruitment campaign in
Novo Nordisks history
kicks off.
Novo Nordisk estimates that

development of oral GLP-1 and
266
insulin treatments will cost DKK
20 billion in total if candidates
successfully make it all the way
to market!
Voksevrk
Falck rykker ud
efter milliarder i
USA og Tyskland
Side 8-9
Hakon Redder / Bagsiden
Udviklingssttte
skaber job til
5 mio stykket
Budgetkrise
Frihandel og
topmder ramt af
budgetkrig i USA
Side 20-21
Foto: Thomas Nielsen
Vkst / 22-23
job har kinesiske

investeringer
sikret i Danmark
Der findes ikke drligt vejr
Nr det danske vejr viser sig fra sin lunefulde side, bliver vejgrebet ofte drligere. Men sidder du i en Audi med det avancerede
firehjulstrk quattro, spiller det ingen rolle. Oplev 24 timer * med optimalt vejgreb. Book tid p audi.dk/quattro
Danmark. Land of quattro
* Glder ved underskrift af lejekontrakt, max 100 km og kun krsel i Danmark.
Clinical
obesity
Total revenue from Victoza (2013, DKK thousands)
Novo Nordisk works with a Danish

biotech company for further testing
on how GLP-1 affects obesity using
animal models.
Novo Nordisk conducts the clinical

SCALE programme and files
European and American applications
for the treatment of obesity with a
new version of the drug liraglutide.
facility where hi-tech production takes

place so this will require highly skilled
employees.
If Novo Nordisk succeeds in hiring

6,000 new employees by 2022,
Danish society would benefit from
an additional 15,000 jobs.
These are highly productive jobs where

the majority of employees are graduates.
Also, just as the biopharma cluster creates
a lot of secondary jobs in other industries,
so will Novo Nordisk, as its growth
forecast sets off a chain of positive events.
During the last 10 years, a large number

of industrial jobs have moved out of
the country. But Novo Nordisk has gone
against the tide. Year after year, the
company has employed more people in
Denmark both in the R&D organisation
and in production.
Its a trend that Novo Nordisk plans
to continue in the years to come. The
projected expansion of activities in
Denmark will require significantly more
employees. According to forecasts,
around 3,000 new jobs will be
advertised for the R&D organisation
alone by the year 2022. In addition,
the same number of jobs will open up
at the companys Danish production
As a result of the new 6,000 Novo

Nordisk jobs, it is estimated that over
21,000 additional jobs will be created in
other sectors with the majority in the
private sector. Novo Nordisks growth
increases Denmarks GDP by DKK 10
billion and this figure increases to DKK
16 billion when the derivative effects are
factored in.
Where will the talent come from?
The additional 3,000 employees in the
R&D organisation equate to a staff
increase of 60% many of whom are
Masters and PhD graduates in the areas
of natural science, health science and
technological sciences. As Novo Nordisk
competes globally on the quality of its

research, these new employees will also
need to perform at a high international
level. Their skills are crucial if Novo
Nordisk is to succeed in the fiercely
competitive world of pharmaceutical
drug development.
Out of the 3,000 new production
staff that Novo Nordisk will recruit in
the coming years for its Kalundborg,
Hillerd and Bagsvrd production
plants, almost half will be highly
educated employees with technical and
scientific backgrounds.
Where will all this talent come from?
The answer is pretty simple: although
an increasing number will come from
abroad, Denmark must educate and
develop a large number of candidates
on home ground. It can be done. But it
means that politicians, universities and
industry must work collectively towards
this goal. Everyone needs to understand
that these challenges require the courage
to think in new ways when it comes to
education and research.
Denmarks job surge
18,000
Novo Nordisk is one of few large

Danish manufacturing companies that
has managed to increase the number of
production jobs in Denmark. This demand
for talent will continue to grow in the
years to come.
16,000
14,000
12,000
10,000
8,000
Novo Nordisk in Denmark

Novo Nordisks R&D organisation
in Denmark
6,000
4,000
2,000
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
05
Potential
growth
Source: Novo Nordisk and Damvad
15,524
6,000
Job creation from Novo

Nordisks projected growth
When growth spreads

If Novo Nordisk succeeds in
hiring 6,000 new employees
in Denmark by 2022, this
would impact positively
on the rest of the Danish
economy. A large number
of the 15,000 secondary
jobs created in other sectors
would benefit skilled workers,
as well as those with basic
education and training.
Novo Nordisks
growth projections
Secondary job creation
from growth projections
Combined job creation
21,524
(people)

Page 26
Page 27
06
Talent
deficit
Masters and PhD graduates being trained

in the three main science areas are of
vital importance to Novo Nordisk.
Unless stronger candidates and PhD

graduates are educated especially
in the areas of health science and
natural sciences the biopharma
cluster in Denmark will suffer from
a shortage of R&D talent.
The current composition of employees in
Novo Nordisk R&D is a good indication
of the types of employees who will be
needed in the future:
More than 60% are graduates
85% of those within the areas
of natural science, health science
or technological sciences.
Denmark must be able to train many

more and even stronger students in
these areas if Novo Nordisk is to recruit
a sufficient number of employees
with skills that can compete at an
international level.
Novo Nordisk R&D in Denmark already
employs around 400 international
staff, and it will be quite natural to
continue to attract many more talented
researchers from around the world.
However, the competition for talent is
fierce. Even with better conditions and
intensive efforts to recruit international
talent, this approach is far from meeting
Novo Nordisks needs.
Danish tax level. Previous studies in

this area have shown that difficulties
in finding jobs for their spouses and
(international) schooling for their
children are also seen as obstacles.
Highly educated international staff
creates great value for Denmark. For
example, a highly skilled international
employee who brings his/her family
to Denmark and stays for eight years
contributes around DKK 1.9 million
to public finances (Confederation of
Danish Industry). This means that Novo
Nordisks international staff adds over
DKK 400 million in contributions to the
Danish economy over a relatively short
period of time.
Training for the future?

However, in just a few years, the number of students
enrolling in natural science has significantly increased.
In the last five years, universities have admitted an

increasing number of students. Two-thirds of those
study humanities and social sciences, many of whom
traditionally seek employment in the public sector.
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2008
Social sciences
2009
2010
Humanities
Health sciences
In an internal survey, international

employees at Novo Nordisk R&D
highlight three factors that make it
difficult for them (and others in similar
circumstances) to stay permanently
in Denmark: a lack of social network,
language and cultural barriers, and the
Almost a third of Novo Nordisk R&D

graduate employees have a PhD.
The 3,000 additional employees in
the R&D organisation are expected to
have a similar profile. Therefore, both
the number and the academic level of
2012
Natural sciences
Technological sciences
Source: The Ministry of Education and Statistics Denmark
5% Other
2022
2011
5% Other
2% Humanities
2% Humanities
4% Agricultural
4%and
Agricultural
veterinary and
sciences
veterinary sciences
2022
5% Social sciences
5% Social sciences
2014
Key employees in
research (R&D)
1,703
2014
5% Others
1,703
5% Others
17% International17%
universities
International universities
Four out of five employees

at Novo Nordisk R&D are
graduates and almost 900
of those are PhD graduates.
Over the next eight years,
Novo Nordisk R&D in Denmark
will grow by another 3,000
jobs: 2,000 graduates from
laboratory technicians to MScs
and about 500 of these with
a PhD.
1,071
1,071
Laboratory staff Laboratory staff

and technicians and technicians
874
1,409
874
2,122
2,122
3,429
Graduates
Graduates
893
PhDs
University of 1%
Roskilde
University of Roskilde
University of 3%
Aalborg
University of Aalborg
University of 4%
Southern
Denmark
University
of Southern Denmark
University of 5%
Aarhus
University of Aarhus
Copenhagen5%
Business
School Business School
Copenhagen
(CBS)
(CBS)
19% Technical University

of Denmark
19% Technical
University of Denmark
(DTU)
(DTU)
Administrative, Administrative,
skilled and basic skilled and basic
training, etc
training, etc
1,409
3,429
1%
3%
4%
5%
5%
Where do the graduates

come from?
About half of the graduates
in Novo Nordisk R&D have a
natural science degree. The
majority of the remaining
graduates are from health
science or the technological
sciences. When we look at
Danish employees, 70% of
those at Novo Nordisk R&D
in Denmark either come from
the University of Copenhagen
or the Technical University of
Denmark (DTU).
17% Health sciences

17% Health sciences
20% Technological
20% Technological
sciences
sciences
The distribution is based

on a survey among 2,258
employees at Novo Nordisk
R&D in Denmark.
893
PhDs
41% University of 41%

Copenhagen
University of Copenhagen
1,438
1,438
48% Natural sciences
48% Natural sciences
Source: Novo Nordisk and Damvad

Page 28
Page 29
Health sciences in focus
A shortage of
talented doctors
When it comes to health sciences,
its clear that there will be a lack
of candidates if universities do not
increase their intake of students.
In just a few years, there will be a
serious shortage of medical doctors
to cater for requirements.
It is particularly worrying if fewer

resources are allocated for these
programmes. Unfortunately, there are
indications that this is the case. Firstly,
the number of students per researcher
(STUD/VIP ratio) has increased from 18 to
22 in the last five to six years. Secondly,
public investment in health science
research has decreased by approximately
25% compared to the number of
graduate students. Such developments
in research-based education are clear
danger signals: quality is at risk.
Similar problems arise when it comes
to PhD programmes in health sciences.
Despite the significant increase in
the number of PhD students, the
competition is keen when it comes
to recruiting graduates. For example,
in the pharmaceutical domain, Novo
Nordisk is expected to absorb 40%
of newly qualified PhD graduates and
these calculations are even based on
the company being able to retain a
large number of international graduate
students in Denmark. However, a study
in this area indicates that although most
of them want to stay on in Denmark,
they face significant barriers to being

able to do so.
What about quality?
The risk of a shortage of talented
young scientists is only part of the
problem. Whats even more troubling
is the quality of PhD graduates. Are
the very best candidates really being
challenged and developed at graduate,
postgraduate and postdoctoral level?
This calls for experienced and talented
university researchers who can take
young researchers under their wing as
apprentices.
It is extremely worrying that there
are currently about 40% more PhD
students per academic staff than in
2007. In addition, the physical research
environment (laboratory capacity, etc)
has not expanded at the same rate as the
growth in the number of health science
PhD students.
This trend must be reversed before
the quality of both Masters and PhD
education in health science gradually
erodes.
A growing gap
Both Novo Nordisk and its partners at universities and hospitals
rely on talented doctors. Therefore, its extremely worrying that
there will be a significant shortage of medical graduates in the
not too distant future.
Supply is based on the number of relevant education profiles

(of working age) admitted to the relevant education programme together with population projections. Demand is
based on the growth of employment in the cluster and the
health system in general.
Supply, based on
2013 admission rate
Demand, based on
2013 admission rate
40,000
40.000
35,000
35.000
30,000
30.000
25.000
25,000
20.000
20,000
15.000
15,000
10.000
Jrgen Sberg Petersen

Jrgen Sberg Petersens career is a good example of
how talent and expertise circulates globally between
universities and private companies.
(assistant professor)
Jrgen Sberg Petersen supplemented his academic

research skills with clinical experience at Danish
hospitals. Since then, he has progressed further as an
entrepreneur and a manager in several biopharmaceutical companies, while keeping close ties with the
global academic research community.
Zealand Pharma
Merck Serono (Switzerland)
An unhealthy sign
The number of students per academic staff
is the universities general measure for class
size. The fact that this has grown to 22 since
2007 is a sign that the number of teaching
staff does not correspond to the increasing
STUD/VIP-ratio
number
of students. In the natural sciences
and technical fields, the ratio is both lower
25 decreasing slightly.
and
STUD/VIP-ratio
Student/VIP ratio

Health sciences
Natural and
technological
sciences
20
25
Lundbeck
15
20
10
15
University of Iowa
5
10
The hospitals in Herlev

and Amager
Novo Nordisk
0
5 2007
2008
2009
2010
2011
2012
The end of the apprenticeship?

For health science PhD students, getting
access to professors, associate and assistant
professors has become increasingly difficult
since 2007. There are now more than five PhD
students
per full-time
researcher.
the natural
Indskrevne
ph.d.er
i forhold In
til VIP-rsvrk
and technological sciences, the level is fairly
constant at around two PhD students per
6
full-time
researcher.
Indskrevne
ph.d.er i forhold til VIP-rsvrk
5
6
4
5
3
4
2
3
1
2
0
1 2007
2008
2009
2034 2034
2032 2032
2030 2030
2028 2028
2026 2026
2024 2024
2022 2022
2020 2020
2018 2018
2016 2016
2014 2014
2012 2012
2010 2010
2008 2008
2006 2006
2004 2004
2002 2002
2000 2000
5.000
10,000
Enrolled PhD students in

relation to VIP full-time
equivalents (FTE)

2010
Health sciences
Natural and
technological
sciences
2011
2012
0
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
Source: Universities Denmark

Page 30
Page 31
10.000
10.000
10,000
8.000
8.000
8,000
6.000
6.000
6,000
4.000
4.000
4,000
2.000
2.000
2034
2034
2034
2032
2032
2032
2030
2030
2030
2028
2028
2028
2026
2026
2026
2024
2024
2024
2022
2022
2022
2020
2020
2020
2018
2018
2018
2016
2016
2016
2014
2014
2014
2,00000
2012
2012
2012
Who should inspire the talent?

As in health sciences, the competition is
keen to attract the new PhD graduates
especially the strongest candidates.
Strong growth in the number of postdoctorates is in itself not a problem. It

reflects a strong commitment to research.
The question is whether it will be at
the cost of education. This would be a
short-term solution. We need to uphold
the principle that skilled researchers must
pass on their knowledge. Therefore, the
responsibility of educating Masters and
PhD graduates should not completely fall
to the youngest and least-experienced
staff members.
12.000
12.000
12,000
2010
2010
2010
In the biology department at the

University of Copenhagen, for example,
almost half of the academic staff are
PhD graduates or research assistants.
Therefore, an important question to
ask is: how do we get the best out of
all of the PhD graduates also from an
educational perspective?
Supply, based on
2013 admission rate
Demand, based on
2013 admission rate
14.000
14.000
14,000
2008
2008
2008
Even if supply and demand in natural

sciences seems to be doing better than
in health sciences, we cannot afford to
be complacent. There may very well be a
shortage of qualified graduates anyway.
The reasons are many and various. Some
could drop out of the workforce, but
geographical distribution, professional
specialisation or the level of quality among
available candidates may also have a
skewing effect on demand. It is therefore
important to maintain the current level,
and to strengthen the quality.
For example, it is critical if the conditions

for the apprenticeship model are
endangered when that the consensus
is that this is the most effective and
inspiring way to train new generations of
scientists to the highest level.
Supply is based on the number of relevant education profiles

(of working age) admitted to the relevant education programme
together with population projections. Demand is based on the
growth of employment in the cluster in general.
16.000
16.000
16,000
2006
2006
2006
For example, the quality of education

needs to be assessed. How has quality
been affected by the fact that the
number of graduates in natural science
and engineering has increased by almost
25% since 2008, while additional
jobs in the same period were primarily
post-doctorate positions (ie temporarily
employment of new PhD graduates in
mainly research positions).
Healthy growth in natural science uptake?

With the relatively high level of admissions in natural science,
there wont be an immediate shortage of candidates in the
long term. However, it is crucial that the increased number of
students does not contribute to a reduction in the quality of
education.
2004
2004
2004
It seems that natural sciences grad

uate programmes are able to keep
up with the expected demand for
the time being. But, with significant
changes to staff composition in the
engineering and natural science
faculties in recent years, this may
affect the quality of education and
talent development.
Therefore, it is crucial that the level

of graduate education is high, and
that there are good development
opportunities for top talent. This is
particularly challenging in a period
where there are more PhD students than
ever before, and, as a consequence,
some students with slightly weaker
competences have been recruited. Thats
why it is now time to discuss how many
PhD graduates can be produced with
no further investment in additional
infrastructure.
2002
2002
2002
More students
less permanent
teaching staff?
Increasing the number of enrolments may

result in some students having weaker
competences. This places even greater
demands on teaching staff, who would
need to cater for them and challenge the
elite. There is a need for increased focus
on the scope and quality of the education
that many students receive.
2000
2000
2000
Engineering and natural sciences

in focus
Erica Nishimura
Erica Nishimura is a good example of how inter
national research talent often comes to Denmark
and Novo Nordisk. Erica is married to a Dane.
Erica is a diabetes researcher. She trained in Canada,
conducted research in California and has a large
international scientific network. The new knowledge,
good ideas and the debates generated within
the networks where Erica is active are of critical
2007
2007
2008
2008
2009
2009
2007
2008
2009
importance to Novo Nordisk.
800
800
800
University of
British Columbia
2010
2010
2010
2011
2011
2011
2012
2012
2012
Novo Nordisk
2013
2013
2013
4.000
4.000
4.000
700
700
700
3.500
3.500
3.500
600
600
600
3.000
3.000
3.000
Salk Institute
500
500
500
2.500
2.500
2.500
400
400
400
2.000
2.000
2.000
300
300
300
1.500
1.500
1.500
200
200
200
1.000
1.000
1.000
100
100
100
000
20072009
20072009
20072009
500
500
500
Hagedorn Research
Institute 00
0
20102012
20102012
20102012
Japan Incretin Study Group,

Kyoto
European Congress of
Endocrinology,
Wroclaw
Japan Diabetes Society,
Osaka
National Congress
of the Association of
Medical Diabetology,
Rome
Too few experienced professors?

Although they are now turning out 25% more gradu
ates than in 2008, the natural and technological science
faculties at Danish universities have not increased the
pace when it comes to recruiting assistant and associate
professors. Instead, there is a surge in the recruitment of
post-docorates for temporary positions. Staffing of pos
itions at assistant professor and associate professor level
from 2007-2009 and 2010-2012, calculated according
to job title and main academic area of scientific specialisation at all Danish universities.
Assistant professor
Associate professor
Post-doctorate
Surge in temporary posts

The natural science faculties stand out when we
compare the number of tenured professors to the
number of post-doctorates who are not permanent
members of the teaching staff. For each assistant
professor, there are six post-doctorates. In several of
the other main areas, the numbers are about even.
Staffing of positions at assistant professor level in
2010-2012, calculated by occupation and name of
science, all Danish universities.
Post-doctorate
Assistant professor
800
800
800
700
700
700
700
700
700
600
600
600
600
600
600
500
500
500
400
400
400
300
300
300
200
200
200
100
100
100
500
500
500
400
400
400
300
300
300
200
200
200
100
100
100
000
0709
0709 1012
1012
1012
0709
0709
0709 1012
1012
1012
0709
0709
0709 1012
1012
1012
0709
000
Humanities
Humanities
HUM
Social
Social
SOC
sciences
sciences
Natural
Natural
NAT
sciences
sciences
Technological
Technological
TEC
sciences
sciences
Health
Health
HEA
sciences
sciences
Source: Ministry of Higher Education and Science based on university reports
Page 32
Page 33
07
A boost for basic

research
Secondly, education of new talent is

based on high-quality basic research.
Thats the essence of research-based
education: graduate and PhD students
can meet their professors, who, as active
researchers, are up-to-date with the
latest knowledge and often international
leaders in a given field of expertise.
Excellent basic research is key

to attracting and educating new
talented researchers; compromising
on the quality and level of public
investment in such research will
negatively impact the countrys
ability to attract research talent in
the future.
Investment and quality are stagnating

For many years, Denmark has invested
in basic research within a number of
fields that are relevant to companies in
the biopharma cluster. However, recent
developments give cause for concern
particularly in two areas:
It is in basic research from academia,

where the first seeds of future medical
discoveries are sown and nurtured. It is
here where scientific breakthroughs are
initiated which the industry can then
take further in an effort to translate
these breakthroughs into new and better
treatments for patients.
Research:
Let the good ideas fly
One of the aims of good public
basic research is to create new
knowledge that tomorrows
innovations can build upon. Its
the sort of knowledge that todays
businesses dont even know that
theyll need in the future. Thats
why basic research is crucial for
potential breakthroughs in the
biopharma clusters research and
development whilst keeping
independence and a long-term
perspective in mind.
Investments in drug research in the

public sector have stagnated in the
last five years, whereas Novo Nordisks
investments in research have steadily
grown. Conversely, international
experience shows that for every dollar
spent on public basic research over a
period of eight years, the investments in
the biopharma industry will increase by
USD 8.3 (Samfundskonomen 2012).
Scientific production flows across borders,

and companies get their ideas for new
products from all over the world. There
are two reasons why Novo Nordisk still
relies heavily on research that has been
conducted in Denmark:
Is there evidence of declining quality in

basic research? While the publications
that Novo Nordisk and Danish
universities publish together are more
frequently cited, this is not the case with
the publications that Danish universities
publish on their own. The joint
publications are largely clinical research,
while the universities own publications
are primarily basic research.
Firstly, Danish universities are very strong

in protein research and related areas
that are relevant to Novo Nordisk. Close
interaction with these environments
is a great asset to Novo Nordisk, as
is illustrated by the output from the
numerous research collaborations with
Danish universities.
Public basic research

Scientific impact for Novo Nordisk relativt til OECD+
Scientific impact for DK minus NN relativt til OECD+
Novo Nordisk
Denmark
Is the quality of Danish
research in decline?
Throughout the 2000s, the
universities own (basic)
research in diabetes was on a
par with more applied research
that Novo Nordisk and the
universities published together.
The difference has increased
significantly in recent years in
terms of number of citations
compared to the average in
OECD countries.
Public investment is
not keeping up
Scientific impact compared to
the OECD average:
Joint publications from
Novo Nordisk and
a Danish university
Publications from
a Danish university
3.5
While Novo Nordisks

investment in research and
development continues to
increase, public investment in
pharmaceutical research is at
a standstill. Almost a quarter
of public health research is
financed by contributions
from the Novo Nordisk
Foundation. Roughly half of
Novo Nordisks spending on
research and development is
used in Denmark. The other
major item in Novo Nordisks
research and development
budget is global clinical
trials.
3
2.5
2
1.5
1
0.5
0
2003
Source: Novo Nordisk, Damvad
Page 34
04
05
06
07
08
09
10
11
12
Novo Nordisk spending

on R&D
140
Public spending on
health science research
130
Public spending on
pharmaceutical research
120
2008 = Index 100
110
2013
100
90
2008
2009
2010
2011
2012

Page 35
08
The cleverest
solutions
Politicians, universities and the
business sector have common
interests in long-term solutions.
We present seven possible paths.
Novo Nordisks development and com
mercial success is a good example of
what is needed to ensure that Denmark
continues to be a nation where the
business sector can compete globally,
and where knowledge-intensive pro
duction creates good jobs for people who
are highly trained and skilled as well as
those with basic education and training.
Although Denmark remains a good
country to do business in, it cannot
just rest on its laurels. The competition
among nations to create better conditions
for advanced production is simply too
keen. Denmark must respond by actively
Page 36
exploiting what it has already established

in order to secure its reputation as a
country that nurtures and supports the
companies that create the foundation for
its present and future prosperity.
The key messages from Novo Nordisk
are clear: Long-term competitiveness
depends very much on the availability of
talent. Being able to educate talented
and ambitious people all the way up
to the highest scientific level. Having
research environments that are strong
enough that foreign and domestic talent
flock to be part of them.
Thats why Novo Nordisk is calling on
politicians, university communities and
the business sector to find mutual, longterm solutions to a number of challenges
concerning future talent. It is not enough
to continue as before. Instead, success
depends on the countrys ability to join
forces and plan a sustainable strategy for
securing and attracting science talent to
the country.
Page 37
Novo Nordisks seven

proposals on how
we can start talking
about mutual efforts
are o
utlined below.
01
02
03
We must treasure research training
We need to be more attractive

to international talent
The quality of teaching at universities

needs to be strengthened, eg by
ensuring high levels of professional
and educational standards, as well as
commitment among teaching staff.
Students should primarily be taught
by active researchers, and teaching
methods need to be geared towards
more interaction and feedback on
student work. In selected courses, the
strongest Masters students should be
selected, challenged more and have the
possibility of following a special talent
programme. They should also be used
to actively increase the standard among
other students.
Admission to higher education needs to

be adapted for the future job market,
so that companies such as Novo Nordisk
are not limited by the lack of a skilled
workforce. We must intensify efforts to
develop more talent in the areas that the
job-creating clusters require.
The training of PhD students is the foun

dation of research-intensive companies
and the future of research-based teaching.
Therefore, we must not compromise on
the quality of Danish PhD education
specifically ensuring that it retains a
strong element of apprenticeship training
with more experienced researchers.
Denmark needs to actively attract

and retain international talent. That
requires a good framework in the
form of a tax system for researchers,
an adequate student capacity at inter
national schools, and the minimum of
bureaucracy for relocation.
05
06
07
Basic research of the highest quality

must become a Danish trademark. This
includes, among other things, that
Denmark promotes itself on the way in
which its universities generate innovative
research results. Such efforts should focus
particularly on the scientific areas where
Danish companies are strong performers:
natural sciences, health sciences and
technical sciences.
The Danish universities and business

sector enjoy a close and trusting
partnership. This must be developed and
optimised to support innovation. This
can be done by creating better incentives
for cooperation, simplifying options for
financing, strengthening the Danish
innovation fund (InnovationsFonden
Denmark), and securing a sensible
framework for intellectual property
rights (IPR) in cooperative projects.
Universities should work systematically

to strengthen and document the quality
of their programmes by, among other
things, reinforcing the formative didactics
in teaching. Each department should
be required to publicly disclose relevant
quality indicators, eg the number of
teaching hours, number of students per
researcher (student/VIP ratio), the results
of teaching evaluations, etc. This would
allow politicians, companies, prospective
students and the universities to get a
clearer overview of important quality
indicators. A similar openness should
apply when it comes to the way in which
universities use their basic funds.
We need to raise the quality

of education
We should brand Denmark as a

hotspot for excellent basic research
At the same time, the strongest research

environments in Denmark should include
special talent programmes. This would
enable the most talented Masters students
to get close to research, and gifted PhD
students will have opportunities to develop
their talent in Denmark and abroad.
Page 38
We must educate to ensure

employability
Universities should cap the number of

students enrolled to ensure they can
produce graduates of high professional
quality. This includes ensuring that
students meet certain minimum
requirements in order to be admitted
to specific Bachelor and Masters
programmes the requirements will
obviously vary from programme to
programme.
We need to strengthen cooperative

innovation
The focus should be on strengthening

the quality of our PhD education. We
must ensure that the growth in the
number of PhD students does not
undermine the quality of the individual
students research education. And we
need to consistently make sure that PhD
students and the large number of new
post-docs are involved in this process too
for example, as teachers or mentors for
talented students.
04
At the same time, specific initiatives are

needed to attract international talent
to a small country like Denmark and
help them to stay on. In addition, Danish
students global competences need to be
strengthened through international study
abroad programmes.
We need to make the quality

of university programmes visible
Page 39
From concept to drug approval

The R&D process at Novo Nordisk
It takes Novo Nordisk over 10 years to turn a good idea into
a drug that benefits patients. For every 10,000 ideas, only
one actually makes it to market. Novo Nordisk works closely
with all relevant stakeholders at every phase of this long
elimination process:
Basic research
Ideas for new treatments come
from many different sources
from cutting-edge basic
research from all over the world
as well as innovative researchers
at Danish universities, Novo
Nordisk and other biopharma
ceutical companies.
Effective registration
and approval
The ultimate goal of the R&D
process is to get products
registered and approved. Its
important for Novo Nordisk to
have strong skills in these areas.
This includes engaging in a
close collaboration with competent health authorities that put
patient safety and innovation at
the top of their agenda.
Access to worldclass talent

Ideas are not developed or
nurtured without the involve
ment of world-class research
ers and technicians. It helps
to be located in a biotech
hotspot that offers exceptional
opportunities for close collab
oration with universities and
other hi-tech companies.
earch
Res
Regis
trat
ion
Idea
C li
al
se
tio
nic
re
a rc
P ro
c
du
Close cooperation
on clinical research
Technical knowledge
and creativity
Developing new treatments

requires clinical research and
trials involving thousands of
patients and it typically lasts for
several years. Clinical research
in Denmark is strengthened by
drug development knowledge
being integrated into the
relevant curricula as well as
through close cooperation
between companies, hospitals
and authorities.
Transforming a new molecule

into a product that can be
mass-produced places enor
mous demands on an employ
ees creative ability. Its this
same level of excellence in technical sciences that is required to
eg develop and improve Novo
Nordisks insulin pens.
June 2014
Published by
Novo Nordisk A/S
Novo All 1
2880 Bagsvrd
Denmark
Contact
Novo Nordisk
R&D Policies and Trends
Distribution
500 copies
Data
Damvad
Copy
Klartekst,
Ola Jrgensen
Translation
The Voice Company
Layout
e-Types Daily
Print
Coolgray
www.novonordisk.com

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Page 1

Denmark and Novo Nordisk

Novo Nordisk A/S

Advanced medical and biotechnological

The Novo Nordisk Foundation owns 25%

Novo Nordisk has directly contributed to

Since 2007, the Novo Nordisk Foundation

For almost 100 years, Novo Nordisk has

Novo Nordisk A/S

DKK donated in 2013

seriously. Finally, we are committed to

The core of a strong cluster

The ripple effect

The cleverest solutions

A boost for basic research

Indskrevne ph.d.er i forhold til VIP-rsvrk

international standing. In other words,

Denmarks biopharma cluster

In 2013, Novo Nordisk achieved a global turnover of

Biogen Idec (Denmark) Manufacturing ApS

The companies illustrated here are the largest in the

Zealand Pharma A/S

Santaris Pharma A/S

Although the companies in the cluster

Nycomed Danmark ApS

Novo Nordisk A/S

Lundbeck (H. Lundbeck A/S)

Food, beverages and

Net exports of industry

Pronova BioPharma Danmark A/S

-120 -100 -80

Source: Damvad and Statistics Denmark

Bavarian Nordic A/S

Net exports is a measure of

Source: Novo Nordisk and Experian

worked is almost double the average

Biopharma is a highly productive

Its difficult make a direct comparison

Total number of Danish jobs

What does 67,000 jobs look like?

Approximately 67,000 Danish jobs are directly or

Income tax (2013)

The biopharma clusters

DKK billion 49.9

Number of Novo Nordisk

Corporation tax (2013)

Number of employees in other biopharma companies

Large societal gains

The biopharma cluster is a catalyst for employment

On 1 May 2014, Novo Nordisk hired its 40,000th

Its a well-known fact that since the

Novo Nordisks exports (2013)

Source: Novo Nordisk, Damvad and Statistics Denmark

Biopharma creates jobs in Denmark

There are almost 240,000 private jobs in the city of

*incl secondary jobs

Source: Novo Nordisk, Damvad and Statistics Denmark

Novo Nordisk multiplies

Jobs with sky-high value

Productivity is measured in terms of value created per

With a production value of

Source: Damvad and Statistics Denmark

Source: Novo Nordisk, Damvad and Statistics Denmark