Novozymes is a biotech-based company, specializing in industrial enzymes, microorganisms, and biopharmaceutical ingredients. Novozymes is headquartered in Denmark and is employing approximately 5,400 people in 30 countries.
Novozymes’ solutions are used in the production of numerous products such as biofuel, detergents, feed and food. Novozymes has produced enzymes by microbial fermentation for more than 50 years, first as part of Novo Nordisk and since 2000 as an independent company.
Novozymes produces more than 700 products that are being used in 130 countries and 40 different industries.
Main line of activity
Novozymes spans two business areas: Enzyme Business and BioBusiness, each covering a number of industries.
The development, production, distribution, and sale of enzymes form the major part of their business whereas the latter acts as a home to smaller, established business in microorganisms and biopharmaceutical ingredients.
Details of the founder
Glenn Nedwin is the Co-Founder and President of Novozymes, Inc. and is currently serving as the Executive Vice President at Genencor - a Danisco Division.
At Novozymes, Inc., a Davis, California-based research & development subsidiary of Novozymes A/S Denmark, Dr. Nedwin was responsible for all scientific, financial and administrative activities, and was a member of Novozymes A/S global R&D management team and its biosolutions strategy group, and was involved in technology/product licensing.
Glenn Nedwin possess over 26 years of experience in the biotechnology industry, his experience spans over areas such as pharmaceutical biotechnology ( 11 years), industrial biotechnology ( 15+ yrs) in industrial biotechnology, 14 years as President of Novozymes Inc, he co-founded and ran Novozymes’ US R&D headquarters, as well as being active in business development.
Glenn received his Bachelor of Science degree from the State University of New York and a Ph.D. from the University of California. Glenn holds a Masters Degree from the Massachusetts Institute of Technology (MIT) and is Co-Editor in Chief of the Industrial Biotechnology Journal.
Business model and uniqueness of their business
Novozymes is not a chemical company, but they partner with established players (i.e chemical industrials that have the application know-how, supply chain, etc.) and new players in the value chain (grain processors who own the feedstock of the future)
Innovation is the key underlying factor that Novazymes adapt in their business. Novozymes drives innovation through all sectors of their business from basic research to their business model and production. Of the most, the internal sustainability setup in Novazymes enhances their credibility with business partners.
Novozymes’ unique biotechnology and optimization skills have resulted in products that have been repeatedly improved, delivering more efficient and environmentally friendly solutions to their customers.
Key reasons for their success
Novozymes’ ability to innovate, change, and adapt to our surroundings has put the company in a strong market position. Novozymes estimates that its share of the enzyme market increased from 42% in 2000 to 47% in 2010, while the market grew from 2.25 USD to 3.57 USD. This larger market share is the result of expanding the industrial enzyme market through innovation and penetrating new industries where enzymes have not previously been used.
About 14% of Novazymes’ revenue is spent on research and development.
Key Inflection points
- In 2001 Novozymes launched a new business strategy, expanded to include initiatives outside the core enzyme business.
- Novozymes formed new biopharmaceutical ingredients business unit based on the acquisitions of three smaller companies in 2007.
- The Company acquired Turfal (Brazil) to strengthen position in bioagriculture market in 2010.
- In 2010, Novozymes received a Tax Credit of USD 28.4 million from the Obama Administration for the construction of its new enzyme manufacturing facility in Blair, Nebraska.
Novozymes commands 47% of the global enzyme market, compared to 42% in 2000, and their sales has been spread across more industries; the detergent industry accounted for 32% of sales in 2010, technical and food industries 32% and 22% respectively, and feed enzymes 8%. Novozymes has also added activities within microorganisms and biopharmaceutical ingredients.
This increased diversity has also led to decreased customer and market concentration. The top five customers accounted for 28% of sales in 2010, as opposed to 38% a decade earlier. In 2000, North America accounted for 28% of Novozymes’ sales; in 2010, this figure had increased to 37%. During the same period, sales in Europe, the Middle East & Africa went from 43% to 36% of sales. Emerging markets’ share of sales is unchanged overall, but China has been a strong growth engine and has been Novozymes’ second-largest national market after the US since 2005.
The primary and secondary competitors for Novazymes includes firm such as Genencor , BASF, Danisco , Chr-Hansen, AB Enzymes, Genzyme, Genentech, Quest International, Gist-Brocades, Lyven, Amano and Le Saffre
What problems does the business solve?
Energy consumption is steadily increasing, climate change is becoming a reality, and oil reserves are diminishing. The resulting volatility in energy prices and supply makes the need for renewable and sustainable fuel even greater. Bioenergy can help the world meet this challenge successfully by increasing energy independence, creating jobs in agriculture and industry, and reducing the use of fossil fuels.
Novozymes strongly supports the sustainable production of bioenergy and invests significant resources in the advancement of both starch-based and cellulosic ethanol. Novazymes business technology can help save raw materials, reduce the use of chemicals, and bring about energy and quality improvements. Novazymes promote sustainability by means of making better use of the world’s resources to meet people’s needs for food and other consumables.
Market segments in the Business
The business encompasses many industries such as fertilizers, biopharmaceuticals, food & beverages, household care, leather, pulp & paper, textile and wastewater solutions.
For example., development and manufacture of high-quality, animal-free, regulatory-compliant, biological ingredients and technologies to help pharmaceutical and medical device manufacturers deliver improved performance and take products to market faster.