A key component of the Novo Holdings strategy is to substantially increase our investing in life science companies in the coming years Kasim Kutay, CEO, Novo Holdings

Our investment strategy

The Novo Holdings investment strategy is underpinned by a belief that we can generate the most attractive returns by focusing on the life science sector, where we can leverage our deep-rooted insights.

Novo Holdings will increase its investments significantly in the life science sector in the coming years. We primarily focus on investing in Europe and the United States, and we think about the life science sector as a group of diversified subsectors, including biotechnology, medical technology, healthcare IT, pharmaceuticals, services, bioindustrials and payers & providers.

We invest along the continuum of the life science investment classes and specifically endeavour to:

  • build a high dividend-yielding portfolio of large equity stakes in well-managed global market leaders such as Chr. Hansen and ConvaTec, as executed by Principal Investments;
  • invest in private and public growh companies requiring expansion capital, as executed by Principal Investments;
  • invest in private and public venture companies, as executed by Novo Ventures;
  • create and build life science companies in Scandinavia and invest in early stage biotech companies in Europe, as executed by Novo Seeds; and
  • allocate a portion of our funds to equity and fixed income securities as a means of diversification, as executed by Financial Investments.

We have a flexible investment style and we can invest in private and public companies, take majority and minority positions and we can hold equity and debt. Furthermore, we aspire to bring more than capital to our investments by adding value to the companies in our investment portfolio and by leveraging our deep-rooted life-science experience and network.

We have achieved attractive and competitive IRR returns in the life science sector of 21% for the five year period 2011–2016 and 16% for the ten year period 2007–2016.

  • 5.1 bn

    Amount allocated to life science investments as of 2016

  • 1.2 bn

    Amount invested in life science companies in 2016

Investment regions

We have a clear and ambitious strategic objective: To build on and enhance our leadership position as a life science investor.

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