Novo NordiskBreakthrough
7 min readChapter 3

Breakthrough

The initial success of Nordisk and Novo in producing insulin set the stage for a period of intense innovation, driven by the desire to improve the lives of diabetes patients beyond merely sustaining them. The early insulin formulations, such as the standard Insulin Leo from Nordisk and Insulin Novo, were rapid-acting. While life-saving, their rapid absorption and short duration of action necessitated multiple daily injections, often three or more, to maintain even basic glycemic control. This regimen imposed a significant burden on patients, impacting their daily routines, and presented substantial challenges for clinicians striving for consistent blood sugar management, leading to frequent highs and lows. This medical reality became the primary driver for both companies to seek longer-acting solutions.

The critical breakthrough for both companies, particularly Nordisk, centered on the development of these longer-acting insulins. In 1936, Nordisk achieved a significant advance with the introduction of Protamine Insulin, developed in collaboration with Dr. Hans Christian Hagedorn, a co-founder of Nordisk. Hagedorn's research demonstrated that by combining insulin with protamine, a protein isolated from salmon sperm, the resulting complex would precipitate at physiological pH. When injected, this complex dissolved more slowly at the injection site, thereby delaying the insulin's absorption into the bloodstream. The result was a significantly prolonged duration of action, reducing the frequency of daily injections needed by patients and dramatically improving their quality of life and adherence to therapy. This innovation was a testament to Nordisk's commitment to foundational scientific research and its ethos of improving patient outcomes, rather than simply supplying the basic drug. The introduction of Protamine Insulin was met with widespread medical acclaim, positioning Nordisk as a key innovator in the nascent field of diabetes pharmacology and allowing it to capture a substantial share of the market for long-acting insulin therapies in the late 1930s.

Building upon this foundational success, Nordisk further refined long-acting insulin therapy. The Protamine Insulin formulation, while groundbreaking, still presented some challenges, including occasional allergic reactions and a less predictable absorption profile. Nordisk’s research team, under Hagedorn’s continued leadership, sought to overcome these limitations. In 1946, it introduced Neutral Protamine Hagedorn (NPH) insulin, also known as Isophane Insulin. NPH insulin represented a significant leap forward; it was a precisely buffered suspension of insulin with protamine in a neutral solution (pH 7.3). This careful buffering produced a crystalline suspension that maintained stability and offered a more predictable and consistent intermediate duration of action, typically lasting 12-18 hours. Unlike its predecessor, NPH insulin could often be mixed in the same syringe with rapid-acting insulins, offering greater flexibility in patient management.

NPH insulin quickly became a global standard for diabetes management. Its balanced duration of action enabled once or twice-daily dosing for many patients, dramatically simplifying the treatment regimen for millions worldwide and making insulin therapy more manageable outside of clinical settings. The widespread adoption of NPH insulin solidified Nordisk’s reputation as a leader in insulin research and development, contributing significantly to its revenue growth and market penetration throughout the post-war period. Its robust distribution networks, which had been steadily expanding across Europe, North America, and other key markets, facilitated the rapid dissemination of this crucial innovation.

While Nordisk focused on these groundbreaking formulations, Novo Terapeutisk Laboratorium maintained a distinct yet equally vital focus: expanding production capacity and refining its existing regular insulin products, ensuring the highest purity and reliability. Novo recognized the immense and continuous demand for basic, fast-acting insulin. Its strength lay in its industrial scale, sophisticated manufacturing processes, and efficiency, allowing it to meet this growing international demand consistently. Novo invested heavily in advanced fermentation technologies and purification methods, crucial for producing large quantities of high-purity animal insulin from porcine and bovine pancreases. This commitment to quality and scale positioned Novo as a reliable, high-volume supplier, enabling it to compete effectively on both price and consistent supply.

Both companies concurrently expanded their market reach during this period. The global prevalence of diabetes, coupled with increasing diagnostic capabilities and the growing recognition of insulin as a life-saving therapy, created an immense and continuous demand that both Nordisk and Novo were exceptionally well-positioned to address. They established subsidiaries and robust distribution networks across Europe, North America, and emerging markets, navigating complex international regulations and logistics. For instance, Novo’s global sales network expanded aggressively throughout the 1940s and 1950s, reaching over 40 countries by the mid-century, driven by the demand for its consistent and competitively priced regular insulin. Nordisk, leveraging its innovative NPH product, also broadened its global footprint, often partnering with local distributors to ensure market penetration.

These periods of growth were also characterized by strategic positioning within a burgeoning competitive landscape. While other pharmaceutical giants globally, such as Eli Lilly in the United States and Hoechst in Germany, also produced insulin, Nordisk and Novo distinguished themselves through their consistent quality and, in Nordisk's case, formulation innovation. Eli Lilly, for instance, introduced its own protamine zinc insulin and later NPH, leading to intense competition in the international market. However, Nordisk’s early entry and patent protection for NPH provided it with a strong competitive advantage initially. Novo’s focus on industrial efficiency and high-volume, cost-effective regular insulin allowed it to capture a significant market share based on reliability and accessibility.

A unique aspect contributing to their sustained success was their respective foundation ownership structures. Both Nordisk and Novo were owned by independent foundations (the Novo Nordisk Foundation, originally separate, for Novo, and the Hagedorn Research Foundation for Nordisk). This structure allowed for long-term strategic planning, prioritizing sustained investment in research and development over short-term financial pressures often faced by publicly traded companies. This meant that earnings could be consistently channeled back into improving insulin therapies, exploring new avenues of diabetes research, and expanding production capabilities, rather than being solely driven by quarterly profit targets or shareholder dividends. This institutional stability fostered a culture of scientific inquiry and patient-centric innovation that proved crucial in their global leadership.

Leadership evolution and organizational scaling were continuous processes for both entities. Nordisk, with its scientific leanings, significantly expanded its research divisions. It attracted top talent in biochemistry, pharmacology, and clinical research, establishing a robust scientific infrastructure. This intellectual capital enabled not only the development of NPH but also ongoing research into insulin purity, stability, and delivery systems. Novo, with its industrial focus, invested heavily in advanced manufacturing technologies, quality control systems, and logistics to optimize its global supply chain. This included scaling up insulin extraction from increasing quantities of animal pancreases, a process that required substantial capital investment and engineering expertise. By the mid-20th century, both Nordisk, with approximately 200 employees by the early 1950s, and Novo, which had grown to over 500 employees by the same period, had transcended their origins as small Danish laboratories. They evolved into significant, specialized pharmaceutical players recognized internationally for their expertise in diabetes care, establishing themselves as formidable competitors to larger, more diversified pharmaceutical companies.

The impact of these breakthroughs was profound. NPH insulin, in particular, transformed diabetes management, making it more practical for patients to live longer, more active, and less restricted lives. The continuous improvements in insulin purity and delivery, even without the advent of recombinant human insulin yet, significantly reduced complications associated with earlier, cruder preparations. For instance, improved purification techniques minimized allergic reactions and lipodystrophy (changes in fat tissue at injection sites) that were more common with less refined animal insulins. Better glycemic control, facilitated by predictable longer-acting insulins, also played a critical role in delaying or mitigating long-term microvascular and macrovascular complications of diabetes. By the time the latter half of the 20th century arrived, both Nordisk and Novo were not merely suppliers of a life-saving drug but innovators who had fundamentally shaped the landscape of chronic disease management. Their independent yet parallel journeys would continue to drive the field forward, laying the groundwork for even greater transformations yet to come, including the eventual development of human insulin and modern analogs.