Pharma expansion: Danish pharmaceutical Novo Nordisk’s parent, Novo Holdings, is in works to open an office in India in 2024 for exploring the growing healthcare market and innovation here, CEO Kasim Kutay said on March 12.

The Denmark drugmaker makes obesity drug Wegovy and diabetes medicine Ozempic.

The company has chosen Mumbai for the new office to be opened this year.

Novo Holdings saw its assets under management jump to 149 billion euros ($163 billion) at the end of 2023, up from 108 billion in the same period last year.

The firm has a portfolio of 170 companies across life sciences, and invests money in  equities, fixed-income assets, and real estate.

Novo Holdings holds 28 per cent of equity of Novo Nordisk Foundation, and also controls 77 per cent of voting shares as its investment arm. It set up an office in Singapore in 2021 and Shanghai in 2022. 

"That obviously speaks to the ambitions that we have in that region," Kutay told Reuters, adding that it will infuse anywhere from $300 million to $500 million in Asia every year in the next five years.

The company has pre-existing investments in Manipal Hospitals and Qure.ai, which expertises in reading and interpreting medical images like X-rays, CTs and ultrasounds.

Novo Holdings also has three investments in Southeast Asia and four in Chinese companies. 

"You've got huge populations, growing middle classes that want more healthcare, governments that are focusing on greater provision of healthcare, and they're increasingly a source of innovation," Kutay said.

When combined, these nations will comprise of integral markets for them, he added. A majority of the Asia investments will be in growth equity instead of larger buyouts, Novo Holdings said.

(With Reuters Inputs)