Novo Nordisk Terminates $598M Cell Therapy Collaboration with Heartseed Amid Restructuring

Novo Nordisk, the Danish pharmaceutical giant, has called off its $598 million collaboration with Japanese biotech Heartseed, dealing a significant blow to the development of a promising cell therapy for advanced heart failure. This decision comes as part of Novo's company-wide restructuring efforts, which aim to refocus the firm's resources on its core diabetes and obesity businesses.

Collaboration Termination and Strategic Shift

The partnership, initiated in 2021, centered on Heartseed's allogeneic cell therapy designed to restore heart muscle and function in patients with advanced heart failure. Under the terms of the agreement, Heartseed stood to receive up to $598 million, including a $55 million upfront payment and near-term milestones.

Novo Nordisk's decision to end the collaboration stems from "strategic reviews and shifts" in its business, according to Heartseed's disclosure. The Japanese biotech expressed surprise at the termination, stating it was "difficult to reasonably foresee" given the collaboration's smooth progress at the operational level and Novo's ongoing work in the cardiovascular space.

Impact on Heartseed and Future Plans

The termination of the deal has significant implications for Heartseed:

1. The company will need to review its overseas partner strategy and business plan.
2. Heartseed will now focus on developing the treatment in Japan using existing funds.
3. All intellectual property licensed to Novo will be returned to Heartseed.

Heartseed's cell therapy, which consists of clusters of purified heart muscle cells derived from induced pluripotent stem cells (iPSCs), recently completed a phase 1/2 trial involving 10 patients with severe heart failure. The treatment is transplanted during open-heart surgery alongside a coronary artery bypass graft procedure.

Novo Nordisk's Restructuring and Future Outlook

Novo Nordisk's decision to terminate the Heartseed collaboration is part of a larger restructuring effort under new CEO Maziar Mike Doustdar. The company aims to:

1. Focus primarily on growth opportunities in diabetes and obesity.
2. Realign resources toward high-impact R&D and commercial efforts.
3. Foster a more agile organization.

This restructuring is expected to result in approximately 9,000 job cuts. Novo Nordisk plans to provide more details about these strategic changes in its third-quarter earnings release on November 5, 2025.