The Novo Nordisk Foundation has donated Dkr5.5bn ($850m) to the BioInnovation Institute (BII) to bolster the competitiveness of the European life sciences sector.
Through this cash injection, which will be allocated over the next nine years, the enterprise foundation is hoping to expand the BII’s capacity to support start-ups and entrepreneurs across the continental life sciences sector.
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The grant will also facilitate the BII’s further collaborations with industry bodies and academic institutions across its home country of Denmark, while expanding its focus to support innovation across Europe as a whole.
The BII was established by the Novo Nordisk Foundation in 2017, though the non-profit later became an independent organisation in 2020. Since its spinout, the BII’s goal remains largely the same – to support the continued growth of the biotech and life sciences sectors within Denmark and other Nordic countries.
The non-profit achieves this by offering early-stage funding, access to infrastructure and business development support to businesses, thus supporting them in moving innovations through to the clinic and beyond.
Now, the commercial charity will expand its focus outside of this region to wider Europe, which will “help ensure Europe’s competitiveness”, noted BII CEO Jens Nielsen.
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By GlobalDataAccording to Novo Nordisk Foundation CEO Mads Krogsgaard Thomsen, this $850m grant will also drive “growth and entrepreneurial culture” within Europe.
Currently, Denmark stands as a significant player in the pharmaceutical market – both in Europe and further afield, with behemoths such as Novo Nordisk, Leo Pharma and Lundbeck contributing significantly to the country’s economy.
Championing Europe’s life sciences sector
The Novo Nordisk Foundation’s grant comes at a time when pharma industry members warn that Europe is lagging behind other regions in the sector.
When the European Union (EU) introduced the new EU Pharma Package in 2025, which marked the most notable revision in this policy in more than two decades, experts warned that certain reforms could harm innovation rather than encourage it, as intended.
The European Federation of Pharmaceutical Industries and Associations (EFPIA) also had a lukewarm response to the framework, calling it “underwhelming” in a statement from the time.
While Europe tries to bolster its life sciences competitiveness, key players from across the pond are also looking to establish their dominance in the field.
The US has been looking to quash competition by onshoring drug manufacturing, while imposing of 100% tariffs on branded pharmaceutical imports under the leadership of President Donald Trump. This is a move that appears to be effective as key opinion leaders (KOLs) note that new biotech hubs are emerging across the US – a change partially driven by such changes enacted by the Trump Administration.
However, US R&D has also taken a hit since Trump’s return to the White House, as funding cuts to government-backed initiatives have impacted everything from mRNA vaccine development to wider accessibility of US National Institutes of Health (NIH) grants.
China’s role in the pharmaceutical industry is also shifting from generic manufacturer to innovative drug developer, with high-value deals involving early-stage Chinese assets proving commonplace in 2025. Chinese biotech and pharma companies are now rapidly integrating into the global clinical trial landscape, with the country taking the lead in cell and gene therapy (CGT) trial initiations between 2019 and 2024, according to GlobalData.
GlobalData is the parent company of Pharmaceutical Technology.
