Benzinga - by Vandana Singh, Benzinga Editor.
The Novo Nordisk Foundation pledged 1.8 billion Danish crowns ($265 million) toward an initiative to enhance vaccines for respiratory illnesses.
This commitment stems from the foundation's substantial profits derived from the success of Novo Nordisk A/S's (NYSE: NVO) weight-loss drug Wegovy, positioning it as a potential significant philanthropic and ESG investor.
This new initiative aims to innovate and enhance vaccines for severe respiratory diseases, including tuberculosis, influenza, and group A streptococcus.
These diseases collectively contribute to over 2.5 million fatalities annually, as stated by the foundation.
"The global battle against tuberculosis has suffered setbacks due to the COVID-19 pandemic. Lack of funding and diverted attention has hampered endeavors to combat what's been termed the "pandemic of the poor."
While lauded for its groundbreaking weight-loss drug, Novo Nordisk has faced scrutiny over its pricing strategy, potentially limiting accessibility for economically disadvantaged individuals most affected by obesity. Moreover, the company disclosed its unlikelihood of distributing the drug in developing nations for an extended period.
The Novo Nordisk Foundation Initiative for Vaccines and Immunity (NIVI) follows Norway's Coalition for Epidemic Preparedness Innovations (CEPI), collaborating to fund vaccine research with contributions from various governments and private entities such as the Gates Foundation.
According to analyses by Berenberg and Reuters, the Novo Nordisk Foundation is anticipated to amass over $12.5 billion in returns by 2026, marking a significant increase from its income before Wegovy's U.S. launch in 2018-2021.
Price Action: NVO shares are up 1.75% at $98.80 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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