In late January 2024, the combination of Novozymes and Chr. Hansen was successfully completed, creating Novonesis – a global biosolutions company with a broad biological toolbox and a diversified portfolio. The combined group operates a global network of R&D and application centers as well as manufacturing sites. New AG International connected with Tina Sejersgård Fanø, Executive Vice President of Planetary Health Biosolutions at Novonesis to learn more.
Novonesis is a combination of two of Denmark’s biggest companies: Novozymes, a specialist in yeast and fermentation, and Chr. Hansen, a specialist in bacteria and probiotics with revenues in the multi billions of euros. What does the merger give them that they couldn’t do on their own?
Bringing together two extraordinary companies provides many new opportunities. We will lead a new era of biosolutions with the power to transform the way we produce, consume and live.
Together as Novonesis, our powerful, combined technology toolbox will enable us to expand our portfolio toward specialized, high value biosolutions that drive long-term growth. Together, we have a unique library of strains – both in size, complexity and accessibility. This is one of the world’s biggest sources of commercial strains that we can use to bring groundbreaking innovations to market.
There are also lots of great potentials and synergies to be fully harvested, take for example our business models in the agricultural space. Legacy Chr. Hansen has driven its business through strong global partners whereas legacy Novozymes had a more direct business model with sales teams on the ground and a broader footprint. All in all, we have a broader portfolio, more opportunities for cross-selling, and a stronger innovation power to be brought at scale and add more value to all our customers around the world.
Tina Sejersgård Fanø
Focusing on the biologicals side of the merger: Novozymes brings the bigger portfolio – mainly N fixation – whereas Chr. Hansen brings its biocontrol products (bionematicides Quartzo and Presence) and a biostimulant for phosphate availability. Is the plan under Novonesis to create what might be called a full spectrum biologicals range, covering biocontrol, biostimulants biofertilizers? On the biocontrol side, the current product is a bionematicide. Are there plans to move into other categories, such as bioinsecticides, biofungicides? And more generally, any launches in the pipeline?
At Novonesis, we have expanded our Plant Biosolutions portfolio by combining a portfolio of biological solutions made from naturally occurring microbes and enzymes. These solutions help farmers increase crop yields, protect crops against diseases and pests, make plants more robust, and improve water and nutrient efficiency.
The newly combined Plant Biosolutions portfolio covers multiple categories for biocontrol, biostimulants and biofertilizers to provide a complete offering to commercial partners and farmers.
Novonesis already has a commercial biocontrol portfolio, including bionematicides and biofungicides – such as the commercial biofungicides Taegro and Actinovate (legacy Novozymes) and the commercial bionematicides Nimaxxa and QUARTZO (legacy Chr. Hansen).
As Novonesis, the intent is to launch a range of novel products in the coming years within all our categories of both biocontrol (insecticides, nematicides and fungicides) and bioyield (N-fixing and yield improving).
Chr. Hansen had a long relationship with FMC in Brazil to sell the bionematicides. Does that relationship continue with Novonesis? What are the aims of this collaboration?
We work with multiple strong and trusted partners in Novonesis and all of them are important for us. The relationship between Novonesis and FMC is and will remain significant. For example, a commercialization agreement for the distribution of Novonesis biosolution products in Canada was recently announced.
The partnership complements FMC’s existing product offering in the Canadian market providing proven biosolutions, and it demonstrates a shared commitment to providing growers with biosolutions designed to improve yield by increasing nutrient availability and enhancing the plants’ natural processes.
From a biologicals perspective, what are the key markets for Novonesis – Brazil and U.S.? Where (in terms of markets) do you see the growth for the combined entity? And in what product category?
Brazil and U.S. are the largest markets for biologicals at the moment. However, Novonesis is a global player, and we are focusing on all relevant markets across the globe. As an example, other Latin American countries than Brazil as well as countries in the Asian-Pacific region are showing fast growth in adoption and commercialization – across all categories.
What are the challenges in bringing together two of the largest companies in Denmark?
We see the combination as a great opportunity to serve markets with biosolutions and bring products that can support farmers and agricultural partners across the globe. We focus our efforts in the integration phase on our customers and ensuring that we build a strong team that can deliver the highest value to end-users. While doing so, we are also creating a new company and learning from both legacy companies to bring the“best of both”. ●
