Vision and strategy
The Novo Nordisk Way of Management is the framework for how the company does business. It consists of three elements: the Vision, the Charter, and a set of 13 global company policies.
The Vision sets out the direction for Novo Nordisk. It expresses what Novo Nordisk is striving for, how we work and how people at Novo Nordisk are guided by the company values in the endeavours to find the right balance between commercial interests and the obligations of a responsible business.
The Novo Nordisk Vision is framed in six statements:
We will be the world’s leading diabetes care company
Our aspiration is to defeat diabetes by finding better methods of diabetes prevention, detection and treatment. We will work actively to promote collaboration between all parties in the healthcare system in order to achieve our common goals.
We will offer products and services in other areas where we can make a difference
Our research will lead to the discovery of new, innovative products, also outside diabetes. We will develop and market such products ourselves whenever we can do it as well as, or better than, others.
We will achieve competitive business results
Our focus is our strength. We will stay independent and form alliances whenever they serve our business purpose and the cause we stand for.
A job here is never just a job
We are committed to being there for our customers whenever they need us. We will be innovative and effective in everything we do. We will attract and retain the best people by making our company a challenging place to work.
Our values are expressed in all our actions
Decency is what counts. Every day we strive to find the right balance between compassion and competitiveness, the short and the long term, self and commitment to colleagues and society, work and family life.
History tells us, it can be done.
Priorities and targets
There is a strong sense of shared purpose across the organisation, and a commitment to pursuing the goals set out in the vision.
Management identifies long-term priorities and objectives through a 10-year
Strategic Planning Process, updated annually. It is informed by trendspotting and 20-year diabetes scenarios, which are revisited every three years.
This plan identifies opportunities for growth, risks and mitigations, and forms the basis for annual target-setting in the company’s Balanced Scorecards. To ensure focus on shareholder value, long-term targets are set for financial and non-financial performance.
Long-term incentive programmes are in place for Novo Nordisk’s Executive Management, Senior Management and approximately 425 senior employees. Granting of incentives relies on the achievement of predefined business-related targets – including R&D portfolio progression and key sustainability projects.
Competitive business results
Four long-term financial targets serve to balance short- and long-term considerations, thereby ensuring a focus on shareholder value creation. These targets focus on growth, profitability, financial return and generation of cash.
Individually and combined, these four financial targets are considered to be competitive compared to the overall performance of the pharmaceutical industry.
Business-specific strategies
Focus is our strength. Novo Nordisk has chosen a focused business strategy that defines two business areas: diabetes care and biopharmaceuticals.
Sustaining leadership in diabetes care
In diabetes care the strategy evolves around the promise of changing diabetes. The goal is to improve the quality of life for people living with diabetes. The company offers modern insulin therapy that serves individuals’ varying needs and lifestyles. With proper therapeutic treatment, people can bring their blood sugar under control and lead near-normal lives.
Novo Nordisk’s product innovation focuses on tailored solutions, more convenient insulin delivery and next-generation insulins. Liraglutide, the first human compound in a new class of therapies for type 2 diabetes, restores the function of ‘tired’ or worn-out insulin-producing cells. With liraglutide there is for the first time a potential to intervene in the disease progression, which is to be further explored. See current diabetes research projects in the pipeline overview.
Development and production of convenient delivery systems supplement the company’s core competences in protein technology.
Longer term, the company focuses on research to find a cure for type 1 diabetes and on ways of intervening to prevent the onset of type 2 diabetes, which is predominantly a lifestyle-related disease. Here, the 20-year diabetes scenarios serve as a tool to identify alternative futures that can shape strategic initiatives and innovative approaches.
The Oxford Health Alliance is another initiative to address prevention. It is a public-private partnership launched in 2003 by Novo Nordisk and the University of Oxford to promote innovative action around preventing and reducing the global impact of chronic diseases such as diabetes, cardiovascular disease, lung disease and some cancers.
Other strategic levers are advocacy, education, awareness and investments in supporting healthcare infrastructure. Read about Novo Nordisk’s strategic response to the global challenge to improve access to diabetes care.
Novo Nordisk has built a presence in export markets since 1926. Today, the company has activities in 179 countries on six continents, either in the form of sales affiliates or via agents. In the past six years Novo Nordisk has invested heavily in expanding activities abroad, following a global sourcing strategy.
Expanding the portfolio in biopharmaceuticals
In biopharmaceuticals the strategy is to expand by modelling the biopharmaceuticals business on the full-portfolio franchise that the company has built over the years around insulin.
The company has leading positions in all of the three therapy areas in which it is active: congenital haemophilia, growth hormone deficiencies and hormone replacement.
In haemophilia Novo Nordisk aims to address unmet medical needs by exploring new indications for NovoSeven®, currently approved for treatment of congenital haemophilia with inhibitors.
New indications currently explored (see the pipeline overview) are intracerebral haemorrhage, trauma, cardiac surgery, spinal surgery, traumatic brain injury and prophylactic treatment.
Development projects aim to rejuvenate the portfolio with new and patent-protected molecular entities that offer additional benefits to people with haemophilia.
In growth hormone therapy the company aspires to become market leader with the liquid product Norditropin® and the ready-to-use NordiPen® device. The strategy includes improving convenience and efficacy as well as exploring new indications. One such opportunity is treatment for adult patients in chronic dialysis (APCD) – an area that represents a large, unmet medical need for a patient group whose current morbidity and mortality rates may be improved with growth hormone treatment.
Within hormone replacement therapy for menopausal women the company is developing new low-dose versions of its current products, Activelle® and Vagifem®.
Longer term, the aim is to also build a presence within immunotherapies: inflammation and cancer. Here, the strategy is first to use and develop the company’s existing knowledge of proteins and autoimmune diseases, and secondly, to position Novo Nordisk as a preferred biotech partner for firms with complementary skills.
People strategy
The people strategy focuses on two key areas: supporting the values of the company and contributing to meeting business challenges in the market. Maintaining and developing an engaging culture is of the essence to drive high performance, and personal leadership is one of the key levers to achieve that.
This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.
