The maker of Wegovy and Ozempic, Novo Nordisk, has announced it will cut 9,000 jobs weeks after warning that profits will fall as more “knock-off” weight-loss drugs emerge.
The redundancies make up 11% of the Danish company’s workforce and mark the first major step by new chief executive Mike Doustdar as Novo Nordisk faces mounting pressures in the rapidly expanding weight-loss sector.
Demand for weight-loss drugs has increased in recent years, in particular after Covid-related lockdowns forced people to stay in their homes.
Mr Doustdar said: “Our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well.”
Novo Nordisk has faced increased competition from rivals such as Eli Lilly which makes Mounjaro.
Eli Lilly recently hiked the price of Mounjaro in the UK, leading to some patients warning they were unable to get hold of the medicine as pharmacies stockpiled the drug before the rise came into force.
The company announced Mounjaro’s price will rise by up to 170%, meaning a month’s supply of the highest dose will go up from £122 to £330.
At Novo Nordisk, the firm warned in July that its full-year sales and profits would not grow as quickly as expected.
The company aims to cut costs by 8 billion Danish kroner (£927m) by the end of next year.
In July, Novo Nordisk warned that its full-year sales and profits would not grow as quickly as expected.
Mr Doustdar said that while “it is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk”.
The company says it will begin discussions with employees in the coming months, in line with local labour laws.
Credit: Source link
