The reductions come as chief executive Mike Doustdar attempts to revive the weight-loss drug pioneer’s market position amid intensifying competition and upcoming patent expirations for core blockbusters.
Workforce Reductions and Cost-Cutting Measures
Novo shed 13,000 jobs during the past year as part of an ongoing cost-reduction strategy, according to financial disclosures from the company. The cuts follow a previous round last year where 9,000 positions were eliminated, including 5,000 jobs in Denmark, out of a total workforce that previously stood at 78,400. A company spokesperson stated that the additional 4,000 departures over the past year largely stemmed from natural attrition and management decisions to leave open roles unfilled.
Despite these corporate-wide reductions, local investments remain active. The company employs 260 people at its manufacturing facility in Athlone, Ireland, and has committed to investing €432 million to upgrade the plant for tablet production of its Wegovy weight-loss drug.
Turnaround Strategy and Pipeline Expansion
Chief executive Mike Doustdar outlined a comprehensive turnaround plan during an investor day in London, addressing a 7 per cent drop in the company’s share price on Monday morning. The executive pledged to launch more than five “multi-blockbuster” drugs by the year 2030.
While maintaining its core focus on obesity, diabetes, and blood disorders, the company plans to branch into new therapeutic areas such as liver and cardiovascular health. Furthermore, Doustdar indicated that Novo will actively pursue business development acquisitions, emphasizing asset quality over sheer deal size to fill pipeline gaps.
Market Competition and Patent Challenges
Novo faces mounting pressure to secure its revenue streams as its flagship semaglutide-based medications, Ozempic and Wegovy, encounter rising competition and the loss of patent exclusivity. Rival Eli Lilly has captured significant ground in the obesity-drug market, with its Mounjaro product outselling Wegovy injections. Additionally, generic manufacturers are stepping in as semaglutide patent protection has already expired this year in India, Brazil, Turkey, and China, with European and US expirations looming in the early 2030s.
Did you know? Novo recently dropped “Nordisk” from its everyday brand name, operating simply as Novo while it restructures its global operations and therapeutic focus.
Clinical Pipeline and Next-Generation Treatments
To counteract setbacks, including a recent late-stage trial failure for a heart attack prevention drug, Novo continues to lead in oral weight-loss treatments and is preparing for upcoming product launches. The company expects to introduce CagriSema, a next-generation obesity treatment, next year. Recent trial results unveiled on Monday demonstrated that a 1mg dose of CagriSema in diabetes patients achieved an average weight loss of 12.4 per cent, compared to 9.1 per cent for a 5mg dose of Eli Lilly’s tirzepatide.
Martin Holst Lange, Novo’s chief scientific officer, announced that his division intends to advance up to 15 trials annually into human clinical studies starting next year.
Frequently Asked Questions
Why did Novo cut 13,000 jobs?
According to company disclosures, the 13,000 job cuts over the past year are part of a broader cost-reduction strategy driven by intensifying competition in the weight-loss drug market, with many recent departures occurring through natural attrition and unfilled roles.
What are Novo’s plans for its Athlone facility?
Novo employs 260 people at its Athlone plant and has committed €432 million to upgrade the facility so it can produce the tablet version of the Wegovy weight-loss drug.
How does CagriSema compare to rival treatments?
Recent trial results cited by the company show that a 1mg dose of CagriSema delivered an average weight loss of 12.4 per cent in diabetes patients, outperforming the 9.1 per cent weight loss recorded for a 5mg dose of Eli Lilly’s tirzepatide.
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