(Reuters) -Novo Nordisk has cut its cell therapy division, which has been trying to find a cure for type 1 diabetes, Bloomberg News reported on Friday, citing a statement. (Reporting by Siddhi
Novo Nordisk Discontinues Cell Therapy Unit Amid Major Restructuring
Novo Nordisk's Strategic Restructuring
By Siddhi Mahatole
Impact on Employees
(Reuters) -Novo Nordisk has decided to discontinue its cell therapy research and development efforts, a spokesperson for the Danish drugmaker told Reuters on Friday.
Future of Cell Therapy Research
Bloomberg News first reported on the development earlier in the day, citing Danish newspaper Borsen, which said Novo was also laying off nearly all of the unit's 250 employees.
Partnerships and Innovations
Novo was testing its cell therapy to generate insulin-producing beta cells for patients with type 1 diabetes in a preclinical study, along with another cell therapy candidate for Parkinson's disease in early-stage trials.
The company said last month it would cut 9,000 jobs in a bid to reignite growth and revive its fortunes under a new CEO.
"As part of this change, we are assessing all business areas and regions to simplify structures, reduce duplication, and sharpen focus," a Novo spokesperson said on Friday, but declined to share details about individual sites and employees involved.
The drugmaker said it was seeking partners with manufacturing capacity to develop its innovations.
It has laid off dozens of employees at the largest U.S. manufacturing site for its blockbuster obesity and diabetes drugs, Reuters reported earlier this week, citing a review of LinkedIn posts.
In late September, Novo called off its $598 million collaboration with Japanese biotech Heartseed to develop cell therapy for patients with advanced heart failure.
(Reporting by Siddhi Mahatole and Sneha S K in Bengaluru; Editing by Shailesh Kuber, Alan Barona, Sahal Muhammed and Pooja Desai)
