The Research & Development Committee
The Research & Development Committee consists of up to five members elected by the Board of Directors from among its members. One member is designated as chairman.
The Research & Development Committee was established in March 2017 in light of the updated research and development strategy and priorities. The new Committee is temporary and is expected to exist for 18-24 months while the company is implementing the new research and development strategy.
The Board has in March 2017 elected the following to the Research & Development Committee:
- Göran Ando (elected, chairman since the establishment in 2017; not independent)
- Brian Daniels (elected, member since the establishment in 2017; independent)
- Sylvie Gregoire (elected, member since the establishment in 2017; independent)
- Liselotte Hyveled (elected, member since the establishment in 2017; employee representative; not independent)
The Research & Development Committee consists of two members who are independent as defined in the Danish Corporate Governance Recommendations and two members who are non-independent, including the Chairman. One member is an employee representative. According to the Danish Corporate Governance Recommendations a majority of the members of a board committee shall qualify as independent. Hence, the composition of the Research & Development Committee does not conform to the Danish Corporate Governance Recommendations. This is due to the fact that the Board of Directors finds that the Research & Development Committee should be composed of members who all have a significant prior experience in relation to Research and Development while maintaining an operational structure of the Research & Development Committee with relative few members.
Roles and responsibilities
The Research & Development Committee assists the Board with oversight of the research and development strategy, the pipeline, and other tasks on an ad hoc basis as specifically decided by the Board.
Research & Development Committee Report 2017
The Research & Development Committee was established in March 2017. The Research & Development Committee works according to an Annual Work Plan with fixed agenda items. In addition, the Research & Development Committee meets when developments require additional meetings. The Research & Development Committee has in 2017 met three times and dealt with the following matters:
Research & Development pipeline update
- Regularly reviewed progress of the development project pipeline, including initiation and results of clinical trials, submission of application for marketing authorisations, and receipt of marketing authorisations for key development projects.
- Reviewed progress of the research project pipeline, including key challenges and initiatives within early innovation and new therapeutic areas.
Progress within external innovation sourcing
- Discussed the increased need for external innovation sourcing.
- Regularly reviewed potential as well as completed external innovation sourcing opportunities, including potential acquisitions and licensing opportunities.
Implementation of the revised Research & Development Strategy
- Reviewed the overall strategic objectives for the next 3-5 years.
- Reviewed the research strategy within other serious chronic diseases.
- Reviewed research & development governance, including how the activities have been divided between corporate functions and functions in the affiliates.
- Reviewed the future organisational research & development set-up.
Research & Development Committee matters and governance
- Reviewed and endorsed the Annual Work Plan for 2018.
- Reviewed and endorsed the Research & Development Committee Charter .
- Conducted private meetings without the assigned executive being present.
- Reviewed and endorsed a report on the Research & Development Committee’s activities in 2017.
Special focus areas
- Semaglutide for type 2 diabetes (subcutaneous and oral): Discussed the clinical trial programme and results as well as the regulatory approval process.
- External innovation sourcing: Discussed the increased search for external research collaborations to support in-house innovation.
- Internal research innovation: Discussed the higher innovation threshold for progressing research & development projects and implications.
- Other serious chronic diseases: Discussed the intensified exploration of current assets in adjacent disease areas of high unmet need as well as the identification of new assets using the company’s existing technology platform.