Novo Nordisk Exits Cell Therapy, Restructures Operations Amid Strategic Shift

Danish pharmaceutical giant Novo Nordisk has announced a significant restructuring of its operations, including a complete withdrawal from cell therapy research and development. This move comes as part of a broader strategy to refocus on its core strengths in diabetes and obesity treatments.

Cell Therapy Program Termination

Novo Nordisk has decided to discontinue its cell therapy programs, affecting approximately 250 employees who will be laid off as a result. The company's spokesperson, while confirming the news, declined to specify which offices or locations would be impacted, citing privacy concerns and respect for the employees involved.

The termination encompasses several key projects:

• A type 1 diabetes program aimed at developing glucose-responsive insulin, delivery devices, and potentially curative stem cell therapies
• Cell therapy research in Parkinson's disease
• Ongoing work in chronic heart failure treatments

The company is now seeking external partners with appropriate capabilities and manufacturing capacity to further develop these innovations.

Strategic Realignment Under New Leadership

The restructuring initiative is being led by Novo Nordisk's new CEO, Maziar Mike Doustdar, who has outlined a vision to sharpen the company's focus on its historical strengths. During a Q2 earnings call in August, Doustdar emphasized:

"We're going to focus more on diabetes and obesity as this is our main core and always has been."

This strategic shift involves a comprehensive review of all business areas and regions, with the goal of simplifying structures, reducing duplication, and enhancing focus on core competencies.

Broader Cost-Cutting Measures

The cell therapy exit is part of a larger cost-reduction strategy announced by Novo Nordisk. Key elements of this plan include:

• A global workforce reduction of 9,000 employees
• Targeted annualized savings of approximately $1.25 billion through 2026
• Termination of partnerships, including a recent dissolution of an agreement with Tokyo-based cell therapy specialist Heartseed

These measures reflect Doustdar's commitment to reallocating resources and optimizing the company's cost base to support growth in priority areas.

As the pharmaceutical landscape continues to evolve, Novo Nordisk's strategic pivot highlights the industry's ongoing challenges in balancing innovation with financial sustainability and core business focus.