Revved up: Novo Holdings amplifies dealmaking with Wegovy windfall+

Novo Holdings, the venture capital arm of Novo Nordisk, plans to increase its dealmaking activity in 2024 following the success of the weight-loss drug Wegovy. The fund manager’s CEO, Kasim Kutay, stated that the company expects to do “a fair amount” more deals and to expand by opening a second office in Asia. Novo Holdings will use the significant dividends from Novo Nordisk to execute its strategy of investing half of its capital into the life sciences sector. The company’s principal investment team, which focuses on buyout activity in the life sciences and healthcare sector, will benefit from the cash flows generated by Wegovy. Additionally, Kutay mentioned that Novo Holdings avoids investing in areas already focused on by Novo Nordisk, such as diabetes and obesity, but has invested venture capital in biotech companies active in those areas. The CEO noted that the past year has seen attractive valuations in the biotech sector, which has led to increased activity in the venture space. Novo Holdings is taking advantage of these opportunities to drive its investment strategy.