Novo Nordisk Discontinues Cell Therapy Research, Shifts Focus Amid Major Restructuring

Novo Nordisk, the Danish pharmaceutical giant, has announced the closure of its cell therapy unit as part of a significant company-wide restructuring effort. This move marks the end of the company's work on potential breakthrough treatments, including a possible cure for Type 1 diabetes.

Cell Therapy Unit Closure and Layoffs

Novo Nordisk has confirmed the discontinuation of all cell therapy research and development efforts. The decision affects nearly all of the division's 250 employees, who will be laid off as part of the restructuring. The company is currently seeking partners with appropriate capabilities and manufacturing capacity to further develop the innovations produced by the now-defunct unit.

"We can confirm that we have decided to discontinue our cell therapy R&D efforts," a Novo spokesperson stated. "We are in the process of identifying partners with the right capabilities and manufacturing capacity to further develop our innovations."

The cell therapy division was working on treatments for various conditions, including:

• Type 1 diabetes (potential cure)
• Parkinson's disease
• Chronic heart failure

Broader Restructuring and Cost-Cutting Measures

The closure of the cell therapy unit is part of a larger initiative led by new CEO Maziar Mike Doustdar. The restructuring aims to save approximately $1.3 billion annually by the end of 2026. This cost-cutting effort involves:

• Laying off 9,000 employees (about 11% of the global workforce)
• Simplifying company structures
• Reducing duplication
• Sharpening focus on core areas

"As part of this change, we are assessing all business areas and regions to simplify structures, reduce duplication and sharpen focus," the Novo spokesperson explained.

Strategic Shift and Recent Developments

The discontinuation of cell therapy research aligns with Novo Nordisk's strategy to reallocate resources to areas such as obesity and diabetes treatments. This shift is evident in recent company actions:

1. Termination of a $598 million cardiovascular cell therapy partnership
2. Acquisition of Akero Therapeutics for $4.7 billion, gaining access to a liver disease drug candidate currently in phase 3 trials

The company joins other pharmaceutical firms, including Takeda Pharmaceuticals, in moving away from cell therapy development. This trend suggests a broader industry reevaluation of the potential and challenges associated with cell therapy research.