Novo Holdings, the controlling shareholder of obesity drugmaker Novo Nordisk, is intensifying its focus on India to capitalize on the country’s rapidly expanding healthcare sector. The firm is targeting investments in single-specialty hospitals and contract drug manufacturing to tap into high-growth segments, according to Amit Kakar, Managing Partner and Head of Asia.
As India’s healthcare preferences evolve, more patients are choosing specialized facilities over general hospitals. Analysts believe this shift will underpin the next wave of healthcare demand, supported by growing private and foreign investments in the sector.
Scaling Up Investment Ambitions in India
As reported by Reuters, Novo Holdings, which managed €142 billion ($165.6 billion) in assets by the end of 2024, is currently in talks with several Indian companies. “When we first started investing in India, our average ticket size was $20–30 million. Now, it ranges between $50 and $125 million. Clearly, we’re doing larger deals,” Kakar told Reuters.
To strengthen its presence, Novo has established a dedicated investment team in Mumbai, underscoring its long-term commitment to India.
Backed by One of the World’s Largest Philanthropic Foundations
Novo Holdings manages assets for the Novo Nordisk Foundation, one of the world’s largest philanthropic organizations. It also holds 77% voting control in Novo Nordisk, the maker of obesity drug Wegovy and diabetes medication Ozempic. This structure enables the investment arm to support both commercial and health-focused ventures that align with its broader mission of advancing global healthcare.
Expanding in Specialized Healthcare and MedTech
Novo Holdings’ largest investment in Asia to date is a minority stake in Manipal Hospitals in 2024. Building on that success, the firm now plans to focus on specialized healthcare facilities and complex drug manufacturing.
Kakar identified single-specialty hospitals — smaller facilities specializing in oncology, mother-and-child care, nephrology, and other focused services — as the “next phase” of hospital care. “A lot of hospital care is now moving outside large tertiary hospitals,” he noted.
According to Credence Research, India’s single-specialty hospital market is expected to grow from $16.2 billion in 2024 to $40.14 billion by 2032. This growth is driven by rising health awareness, lifestyle-related diseases, and increasing demand for focused care.
Investing in Contract Manufacturing and Biologics
Novo is also exploring partnerships with contract drug manufacturers, particularly those producing complex biological drugs used in treating cancers and other serious conditions. Such investments align with global trends emphasizing biologics as the future of advanced medicine.
Exploring New Frontiers: Senior and Step-Down Care
Beyond hospitals and manufacturing, Novo Holdings sees potential in senior care and step-down care. These services cater to patients recovering from surgeries or cardiac events who no longer require intensive hospital care. This segment is gaining traction in India due to an ageing population and the need for affordable post-acute care solutions.
A Long-Term Bet on India’s Healthcare Transformation
Novo Holdings is expanding its investment portfolio and has a dedicated local team. The firm is focusing on specialized healthcare, positioning itself as a key player in India’s healthcare evolution. India, the world’s most populous nation, is moving toward more personalized and accessible medical services. Novo’s strategic investments could play a pivotal role in shaping the next era of Indian healthcare innovation.