It’s no secret that big pharma has been getting leaner, with companies buying and selling businesses to play to their strengths. Novo Nordisk‘s plans to spin off its IT solutions business, NNIT, fits that pattern too. Although it announced intentions to review this option earlier this year, a few different press organizations, including Reuters, have reported it could happen this week.
NNIT has two main sets of customers for which it provides IT solutions. On the international side, it advises, consults and helps pharmaceutical companies build different IT solutions according to their needs. It’s involved in consulting and building particular services around quality management, drug development. For example it helped one pharmaceutical company build a clinical data warehouse. But in Denmark where the company is based, its IT business goes beyond life science companies and includes plenty of non-pharma businesses like toy company, Lego, along with banks and other companies. It opened a U.S. office in Princeton, New Jersey in 2012.
Morningstar Healthcare Strategist Karen Andersen pointed out that NNIT is one of two NovoNordisk companies that have de-merged but remain wholly owned subsidiaries. The second is NNE Pharmaplan (engineering consulting). Both were in-house divisions that were later separated.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Although spinouts are not unusual for pharma companies, particularly when there’s a merger, it’s usually a drug development or R&D business, not an IT company.
Photo from Flickr user Jerry John.
