Innovation allows us to explore our research and development agenda in a way that addresses both social and environmental concerns. The challenge is to ensure that treatment, education and capacities are available in all parts of the world.

In 2002, we spent DKK 4 billion on R&D (EUR 555 million) – 16% of our total turnover – a figure that reflects the industry average. We have some 3,000 employees working in R&D and three-quarters of these are working within diabetes care.

New products launched during the past six years constituted approximately one-third of  our turnover. Currently, we have six key product candidates in the late-stage pipeline. This innovation could not take place without our declared strategy of external research partnerships with other biotechnology companies, universities and research institutions. lose to 25% of our external research budget is dedicated to such collaboration, of which 95% takes place outside Denmark. In addition, we fund about 75 students from all over the world in their doctoral and other postgraduate programmes.

We believe that our education-related R&D is a social investment that benefits not only Novo Nordisk but society at large. Also, by running the basic research at the Hagedorn Research Institute and working with the Steno Diabetes Center, we are at the forefront of global research efforts aimed at understanding and finding a cure for diabetes.

Our pipeline constitutes the most comprehensive portfolio of type 2 diabetes drug candidates in the industry.From a global social perspective, our main product area – diabetes and insulin therapy – aims to fulfil an unmet need in society, namely the epidemic of type 2 diabetes. At present, NovoNorm®/Prandin®, an oral antidiabetic drug, is the only Novo Nordisk product designed exclusively for type 2 patients.

A number of type 2 products under development are expected to play a major role in future, including NN2211 (an analogue of the natural hormone GLP-1 which stimulates the production and release of insulin in the body), currently in phase 2 trials, and AERx®iDMS, now in phase 3 trials. The latter is being developed in collaboration with the Californian company Aradigm, and is a pulmonary delivery system for administering insulin by inhalation.

We do, however, face a dilemma in shaping our R&D agenda. For while the majority of our R&D is going into products for type 2 diabetes, our most advanced products will only be affordable for the developed world. The only way to address this dilemma is to help ensure that life-saving therapies do in fact reach the most disadvantaged part of the world. This recognition is what prompted our LEAD initiative in the developing world and the World Diabetes Foundation.

NovoSeven® (recombinant Factor VIIa) was originally a niche product designed for an extraordinary type of haemophilia in which the patient’s body develops inhibitors (antibodies) and is refractory to standard treatment. But in recent years the drug has been reported to have a number of promising uses on patients with no underlying clotting disorders, such as in surgery and severe bleeding in trauma and intra-cerebral haemorrhage. Its potential as a general haemostatic agent means that Novo Nordisk will have two main growth drivers: diabetes care and haemostasis management.

Human growth hormone therapy and some promising early development phase projects further complement our portfolio of protein-based therapies, and contribute to our business goals.

We have increased resources for discovery and development of biopharmaceuticals within and outside the diabetes area. This move was made to get full value out of our existing and future portfolio and core competences: diabetes, proteins and drug delivery. Hence, our R&D pipeline encompasses therapeutic proteins with the potential to fulfil unmet needs within eg cancer and chronic immunological diseases. We have created a new seamless
organisation for our discovery and development, and established a closer relationship between R&D, our International Marketing team and the affiliates.

When applying gene technology in the expression and production of insulins and other protein-based products, we are focused on environmental considerations such as eliminating antibiotic resistance marker genes wherever possible, making the most efficient use of raw materials and reducing the consumption of water and energy. This way, cutting-
edge scientific innovation and benefit to the environment go hand-in-hand. To scientists, having a yeast cell, for example, provide as much product as possible as quickly as possible is a measure of their research success. The proof of our researchers’ commitment to both superior products and a better environment is the fact that all our new insulin production strains today demonstrate marked improvement in water and energy consumption.